THE METHOD
How this calculator works
Full-year bonus = base × target bonus % × payout %. First-year bonus = full-year bonus × eligible months ÷ 12. First-year cash = base + first-year bonus + signing bonus.
Compare cash and the wider package separately
Recurring cash combines base salary with the full-year bonus scenario. The package total also includes your annual equity and employer-benefit estimates. A package value is useful for comparison, but it is not the amount available in your bank account.
Enter only the equity value attributable to one year. Putting a four-year grant into the annual equity field overstates recurring compensation. Keep uncertain equity values visible as assumptions, and check any vesting conditions before treating employer contributions as yours.
First-year bonus can differ from the annual target
A 20% target bonus with a 75% payout produces 15% of base before any eligibility adjustment. Eligible months then reduce the first-year bonus only. The recurring view keeps a full year of eligibility so you can see the difference.
Signing bonus is added once. The first-year illustration assumes 12 months of base salary, equity and benefits; it is not a calendar-year payroll forecast for a midyear start. Actual eligibility cutoffs, repayment clauses and bonus calculations come from your offer and plan documents.
WORKED EXAMPLE
A $150,000 first-year package is not $150,000 cash
With $100,000 base, a 20% target bonus paid at 100%, 12 eligible months, $15,000 annual equity, $5,000 benefits and a $10,000 signing bonus, recurring cash is $120,000. First-year cash is $130,000; the first-year package including equity and benefits is $150,000.
Assumptions and limits
- Bonus proration is a simple eligible-months scenario, not an interpretation of an employer policy.
- Recurring compensation normalizes the bonus to 12 eligible months; first-year base, equity and benefits also assume a full year.
- Equity and benefits are user-entered annual values and are not treated as spendable cash.
- Results exclude taxes, equity price changes, vesting forfeitures and signing-bonus repayment obligations.
Common questions
What should I include in total compensation?
For this comparison, enter annual base, the bonus scenario, annual equity value and employer-paid benefits you want to value. Keep your own salary-funded retirement contributions out of employer benefits to avoid counting the same compensation twice.
How is a prorated bonus calculated?
This tool multiplies the full-year bonus by eligible months divided by 12. Your employer may instead use days, an eligibility cutoff or a different salary basis. Enter the scenario that matches the written terms.
Why are first-year and recurring compensation different?
A signing bonus is a one-time payment, while first-year bonus eligibility may cover fewer than 12 months. Showing both helps reveal whether a strong initial package depends on money that will not repeat.
Sources and methodology
Reviewed November 6, 2026. Sources support the method described above. Examples are illustrative; results depend on your inputs and require your review.