How to Compare Benefits Packages and Calculate Their Value

To compare benefits packages and calculate their value, convert every benefit into an annual dollar figure, add the employer-funded pieces to the base salary, subtract what you’ll pay out of pocket, and rank offers by the net total. The number on the offer letter is only the floor. Health premiums the employer covers, retirement matching, HSA deposits, equity vesting, and tax-free perks routinely add thousands on top, while your share of premiums and expected medical costs eat into it. One spreadsheet, one column per offer, one final number each.

What to Collect for Each Offer

Before any math, gather the same set of documents from every employer. For health plans, that means the Summary of Benefits and Coverage, a standardized document that lets you compare plans across insurers and employers on the same terms.1HealthCare.gov. Summary of Benefits and Coverage For retirement, ask for the Summary Plan Description. For equity, ask for the grant agreement or an offer addendum showing share count, vesting schedule, and strike price. For bonuses, ask what percentage of employees hit target last year.

Build a spreadsheet with one column per offer and rows for each benefit category below. Fill in a dollar figure per row. Where a benefit is variable (a target bonus, options that may or may not be in the money), discount it rather than counting it at face value.

Health Insurance: The Biggest Piece

Health coverage is usually the most expensive benefit an employer provides, and it’s where offers differ most. Pull three numbers from each plan:

  • Monthly premium. Multiply by 12 for annual cost. Note whether the employer subsidy applies to family coverage or only to you.
  • Annual deductible. A plan with a low premium and a $3,000 deductible can cost more overall than a higher-premium plan with a $500 deductible if you use care regularly.
  • Out-of-pocket maximum. For 2026, ACA-compliant plans cap this at $10,600 for individual coverage and $21,200 for family coverage. Past that ceiling, the plan pays 100%.

After the deductible, most plans use coinsurance, commonly 80/20, until you hit the out-of-pocket maximum.2HealthCare.gov. Coinsurance Network type matters too. An HMO generally won’t cover out-of-network care except in emergencies; a PPO does, at a higher cost.3HealthCare.gov. Health Insurance Plan and Network Types: HMOs, PPOs, and More If you want to keep specific doctors, check the plan directory before you accept.

For the spreadsheet, you need two numbers per plan: the annual amount the employer pays toward your premium (that’s employer-funded value you’d otherwise have to buy yourself) and your annual share (a cost you subtract). If you use care regularly, estimate a realistic year’s deductible and coinsurance spending and subtract that too.

Retirement Match and Vesting

A retirement match is only worth what you actually keep. Start with the formula. A dollar-for-dollar match up to 6% of salary is worth roughly three times a 50-cent match up to 4% on the same pay. For 2026, employees can defer up to $24,500 into a 401(k) or 403(b).4Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500 Catch-up contributions add $8,000 at age 50 and $11,250 for workers aged 60 through 63 under SECURE 2.0.5IRS.gov. 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living Combined employee and employer contributions can’t exceed $72,000 for 2026.

Then read the vesting schedule. Under cliff vesting, you own nothing until a set date and then own 100%, with three years being the fastest allowed cliff. Graded vesting steps up gradually, starting at 20% in year two and reaching 100% by year six.6Internal Revenue Service. Retirement Topics – Vesting Run the math for the tenure you actually expect. A smaller match that vests immediately can beat a larger match on a six-year graded schedule if you plan to move on in three.

For the spreadsheet, use the dollar match you’ll receive at your intended contribution rate. If the match is dollar-for-dollar up to 6% and your salary is $100,000, that’s $6,000, but only if you contribute at least $6,000 yourself.

Equity Compensation

RSUs and stock options are the two common forms, and they behave differently.

Restricted stock units are a promise to deliver shares once vesting is satisfied. When shares vest, their full market value counts as ordinary income. A grant of 500 RSUs vesting over four years at $100 per share is worth $12,500 per year in pretax income if the price holds.

Stock options give you the right to buy shares at a fixed strike price. If the stock rises above that price, you profit from the difference. Nonqualified options are taxed as ordinary income at exercise. Incentive stock options can qualify for long-term capital gains rates if you hold the shares at least two years from grant and one year from exercise, though ISOs can trigger alternative minimum tax.7Office of the Law Revision Counsel. 26 USC 422 – Incentive Stock Options

Compare four things across equity offers: share count, vesting schedule, current stock price (or most recent valuation for private companies), and acquisition acceleration terms. Some plans fully accelerate vesting on an acquisition; others require both an acquisition and involuntary termination. That distinction can decide whether you leave with a windfall or with nothing. For your spreadsheet, use the annual vesting value, and discount heavily for private-company shares and for options where the strike price is near or above the current price.

HSA, FSA, and Other Tax-Advantaged Extras

Some employers pair a high-deductible health plan with an HSA contribution. Those contributions are tax-free, roll over year to year, and stay with you when you leave. To qualify for an HSA in 2026, the plan must have a deductible of at least $1,700 for individual coverage or $3,400 for family coverage, and combined employee and employer contributions cap at $4,400 for self-only and $8,750 for family.8IRS.gov. Expanded Availability of Health Savings Accounts Under the OBBBA An employer dropping $1,000 into your HSA is handing you $1,000 in tax-free money. Add it to total compensation.

FSAs work differently. A healthcare FSA lets you set aside up to $3,400 in pretax dollars for 2026, generally use-it-or-lose-it. A dependent care FSA allows up to $5,000 per household, or $2,500 if married filing separately.9Internal Revenue Service. Employer’s Tax Guide to Fringe Benefits FSA contributions come from your paycheck, so they reduce your taxes but don’t add employer-funded value to the comparison.

Other line items worth pricing:

  • Educational assistance is excluded from income up to $5,250 per year for tuition, books, or student loan repayment.10Office of the Law Revision Counsel. 26 USC 127 – Educational Assistance Programs
  • Commuter benefits for transit and parking are excluded up to $340 per month each for 2026, over $4,000 a year in a pricey metro.9Internal Revenue Service. Employer’s Tax Guide to Fringe Benefits
  • Employer-paid group life insurance is tax-free up to $50,000 of coverage. Above that, the imputed cost of the excess coverage is taxable per IRS premium tables.11Internal Revenue Service. Group-Term Life Insurance
  • Disability insurance has a tax quirk: if the employer pays the premiums, benefits are fully taxable; if you pay with after-tax dollars, benefits come to you tax-free. A 60% policy loses value fast if a third of the payout disappears to taxes.12Internal Revenue Service. Life Insurance and Disability Insurance Proceeds

Bonuses, Commissions, and Signing-Bonus Clawbacks

Variable pay is real compensation, but it should never be counted at face value. If an offer includes a 10% target bonus on a $100,000 salary, ask what share of employees hit target last year. A 10% target that 90% of the team reaches is worth more than a 20% target only a handful hit.

Sales roles often quote on-target earnings. An OTE of $150,000 split 50/50 means $75,000 base and $75,000 in commissions at full quota. Compared to a salaried role at $130,000, the salaried role carries less risk. Discount variable comp accordingly.

Signing bonuses need the same scrutiny. Most carry a clawback requiring repayment if you leave within one to three years. A $20,000 signing bonus with a two-year clawback is really a $10,000-per-year retention incentive, and leaving at month 14 can mean writing a check back. Read the clawback terms before counting a signing bonus in your comparison.

Paid Time Off and Parental Leave

Time off has a dollar value. On a $100,000 salary, an extra 10 vacation days beyond a 10-day baseline are worth roughly $3,850 in daily pay. Count vacation days, sick days, and paid holidays separately. Federal law doesn’t require paid holidays or vacation, so these vary entirely by employer.13U.S. Department of Labor. Holiday Pay

For parental leave, the federal baseline is FMLA: up to 12 weeks of unpaid, job-protected leave for eligible employees at companies with 50 or more workers.14U.S. Department of Labor. Family and Medical Leave Act Some states layer paid family leave on top.15USAGov. The Family and Medical Leave Act for Workers and Employers An offer with 16 weeks of fully paid parental leave is worth tens of thousands more than one at the FMLA minimum.

Unlimited PTO deserves a closer look. Many states require employers with traditional PTO plans to pay out accrued, unused vacation at separation. With unlimited PTO, nothing accrues and nothing pays out. Studies also show employees with unlimited PTO often take fewer days than those with a fixed allotment. If an offer includes unlimited PTO, ask about the team’s average days taken and whether the company tracks it.

What the Health Plan Costs After You Leave

The full price of your health plan matters even after you separate. Under COBRA, if you lose your job or your hours drop at a company with 20 or more employees, you can continue group coverage for up to 18 months.16Office of the Law Revision Counsel. 29 USC 1161 – Plans Must Provide Continuation Coverage to Certain Individuals Other qualifying events like divorce or a dependent aging off the plan can extend that window to 36 months.17U.S. Department of Labor. FAQs on COBRA Continuation Health Coverage for Workers

You pay the full premium, meaning both your former share and the employer’s share, plus a 2% administrative fee.18U.S. Department of Labor. FAQs on COBRA Continuation Health Coverage for Employers and Advisers If the employer was covering $1,200 of a $1,500 monthly premium, your COBRA bill jumps to $1,530. That’s another reason to know the full premium cost of each plan, not just your share.

Putting It in One Number

Once you have the pieces, run the math. Guaranteed compensation first:

  • Base salary.
  • Annual employer contributions to health, dental, and vision premiums. This never shows up on a paycheck but is real money you’d otherwise pay.
  • Retirement match at your planned contribution rate.
  • Employer HSA contributions.
  • Annual equity vesting value, discounted for risk.

Then benefits you’re confident you’ll use:

Then subtract your costs:

  • Your annual premium share.
  • Expected out-of-pocket medical spending at your typical usage.

The formula: (base salary + employer insurance contributions + retirement match + HSA contributions + equity vesting value + expected bonus) minus (your premium share + estimated medical out-of-pocket) equals net total compensation. Rank offers by that final number. Run the calculation at your actual expected usage, not best case or worst case. A slightly lower salary with a generous match and cheap health coverage routinely beats a higher salary with bare-bones benefits.