Question 1

What is total compensation and how is it different from salary?

Accepted Answer

Total compensation includes everything your employer pays you or on your behalf — not just your base salary. It adds annual bonuses, stock grants (RSUs), 401(k) employer match, employer-paid health insurance premiums, the monetary value of paid time off (PTO), and any other benefits. Two offers with similar salaries can differ by tens of thousands of dollars in total compensation.

Question 2

How do you calculate the value of paid time off (PTO)?

Accepted Answer

PTO is valued by calculating your daily pay rate — your annual salary divided by 260 working days per year — and multiplying it by the number of PTO days. For example, a $100,000 salary gives a daily rate of about $385. If you get 20 PTO days, that benefit is worth roughly $7,692 per year.

Question 3

Should I take a lower salary for better benefits?

Accepted Answer

It depends on the total value. A job with a lower base salary but generous 401(k) match, RSU grants, or employer-paid health insurance could be worth more overall. Use a total compensation comparison to see the full picture before deciding.

Total Compensation Calculator

Job Offers

Offer A Total

Offer B Total

Difference

Compensation Breakdown

Component Comparison