Job Offer Comparison Tool
Compare job offers side by side, normalizing for cost of living, equity risk, benefits, and state taxes to find the best total package.
Why Normalize Job Offers
A $200,000 salary in San Francisco and a $160,000 salary in Austin are not as different as they appear. Cost of living, state income taxes, equity risk, and benefits all affect the real purchasing power of a total compensation package. This tool adjusts for those factors to produce a single comparable number.
How Cost of Living Adjustment Works
The COL index represents the relative cost of living compared to a baseline of 100. A city with a COL of 150 is 50% more expensive than baseline. After-tax compensation is divided by the COL index and multiplied by 100 to normalize all offers to equivalent purchasing power. You can find COL indices from sources such as the Bureau of Economic Analysis regional price parities, NerdWallet, or Numbeo.
Equity Risk Discounting
Not all equity is created equal. RSUs at a large public company are nearly as liquid as cash, while equity at a pre-IPO startup carries significant risk of being worth nothing. The risk discount lets you haircut equity value based on your assessment of that risk. If an offer relies heavily on employee stock options rather than RSUs, a steeper discount may be appropriate. Common approaches: 0% for large public companies, 10-20% for smaller public companies with volatile stock, 25-50% for late-stage private companies, and 50-80% for early-stage startups.
State Tax Differences
State income tax varies dramatically. California's top rate exceeds 13%, while states such as Washington, Texas, Florida, and Nevada have no state income tax. This difference alone can shift tens of thousands of dollars in after-tax income. This tool applies each offer's state tax rate independently so these differences surface clearly.
Benefits Valuation
Employer benefits have real economic value that varies significantly between companies. Health insurance premiums, 401(k) matching, HSA contributions, meal stipends, and other perks can add $15,000-$40,000 or more in annual value. Enter the total estimated annual value of benefits for each offer. Benefits are included in total compensation but are not treated as taxable income.
Limitations
This tool uses flat tax rates rather than modeling progressive tax brackets. Equity valuation uses a static risk discount rather than probabilistic modeling or option pricing. COL indices are simplified approximations that may not reflect your specific spending patterns. The COL adjustment is applied to total after-tax compensation including benefits; in practice, some benefits (such as health insurance) have a fixed value regardless of location. Benefits are entered as a single annual value rather than being itemized. Signing bonuses are amortized evenly rather than accounting for time value of money. For decisions involving significant compensation, consult a financial advisor.