Salary Raises and Job Offers: Do the Math

Why a few thousand dollars of extra starting pay is worth far more over time, and how to compare two job offers fairly.

Raises build on each other, so your starting salary matters more than it seems.

Why the start matters

Say you negotiate $5,000 more at the start and receive 3% raises every year. Over 10 years the extra earnings add up to about $57,000, before any bonus effect.

Compare offers on total value

Add base pay, bonus, retirement match, health cost, paid leave and commute. A lower salary with a strong match and cheap insurance can beat a higher one.

Know your hourly worth

Convert salary to an hourly rate to see the real value of overtime, a longer commute or unpaid work.

Tools

Check a raise with the pay raise calculator, weigh offers in the job offer comparison calculator and convert pay with the salary to hourly calculator.

This article is general education, not financial advice.