Which offer is actually bigger?
Two offers rarely line up on base salary alone. Put them side by side — base, 401(k) match, bonus, and how long until the match vests — and see which one wins once the kept match and bonus are invested over the years you'd stay. The higher headline number isn't always the better deal.
Background Read the 401(k) guideTotal value = base salary banked each year plus the kept match and bonus invested at the return rate (annual compounding — both are once-a-year cash flows). A match adds salary × rate × cap; an offer's match counts only if you stay past its vesting cliff. Ignores raises, taxes, cost-of-living differences, and benefits beyond the match. Estimates, not advice.
How to read it The match is part of your pay.
A 401(k) match is money the employer adds on top of your salary — and unlike your salary, you invest it instead of spending it, so it compounds. But two things decide whether it counts. First, the formula: "100% up to 6%" adds a full 6% of your pay, while "50% up to 6%" adds only 3%. Second, vesting: if you leave before the match is yours to keep, you forfeit it. A generous match on a long vesting cliff can be worth less than a smaller one you actually keep.
"Total value" here means the salary you'd bank over the years plus the kept match and bonus invested and grown. It's a way to compare offers on the same footing — not a promise of a future balance.
Caveats Where this estimate is rough.
- Vesting comes two ways here. Cliff is all-or-nothing at the year you set — past it you keep the whole match, before it you keep none. Graded keeps a growing share each year up to that year. The graded mode ramps evenly from year one; some real plans wait a year before the ramp begins, or step it differently. Pick whichever your offer letter describes, and treat it as a rough flag, not the fine print.
- Raises and promotions. Salary is held flat across the horizon. An offer with a steeper raise path could close — or widen — the gap.
- Taxes and cost of living. The figures are pre-tax and ignore where you'd live. A higher number in an expensive city can buy less.
- Benefits beyond the match. Health premiums, PTO, equity, and remote flexibility aren't in the math — and they can outweigh a modest dollar gap.