Total Annual Compensation Calculator
Yearly
Monthly
Bi-Weekly (26 pay periods)
Weekly
Hourly (40 hrs/week)
Your Total Compensation Package
$0.00
Annual Base Salary:
$0.00
Variable Cash (Bonuses):
$0.00
Equity (Stock/Options):
$0.00
Total Benefits & Perks:
$0.00
Understanding Your Total Annual Compensation Package
When evaluating a job offer or considering a career move, focusing solely on the "base salary" often leaves money on the table. In modern employment, Total Compensation (TC) represents the true value of your labor, combining your direct pay with secondary financial benefits and perks.
The Components of Total Compensation
A comprehensive compensation package typically includes four main pillars:
- Base Salary: The fixed amount of money paid to an employee in exchange for work performed. This is the foundation of your pay and usually determines your hourly or monthly rate.
- Variable Pay (Bonuses): Performance-based incentives, annual bonuses, or commission structures. While not guaranteed, these are critical for high-earning roles in sales and management.
- Equity & Stocks: Common in the tech and corporate sectors, Restricted Stock Units (RSUs) or Stock Options provide you with ownership in the company, often vesting over several years.
- Benefits and Perks: This includes the employer-paid portion of health insurance, 401(k) or pension matching, HSA contributions, gym memberships, and transportation allowances.
How to Use the Annual Compensation Calculator
To get an accurate picture of your earnings, follow these steps:
- Define your Base: Enter your salary. If you are paid hourly, select the "Hourly" option; the calculator assumes a standard 2,080-hour work year (40 hours per week).
- Add Annual Bonuses: Look at your last performance review or offer letter for "target bonus" percentages.
- Calculate Stock Value: If you receive RSUs, divide the total grant value by the number of years in the vesting period to find the annual value.
- Quantify Benefits: Don't ignore health insurance. Many employers pay $5,000 to $15,000 annually for employee premiums—this is effectively untaxed income.
Example Calculation
Imagine an employee with the following details:
| Component | Amount |
|---|---|
| Base Salary | $85,000 |
| 10% Annual Bonus | $8,500 |
| 401k Match (4%) | $3,400 |
| Health Insurance Premiums | $7,200 |
| Total Compensation | $104,100 |
In this example, the "salary" is $85k, but the actual value being transferred to the employee is over $100k. Use our calculator to see where you stand today or to compare two different job offers side-by-side.