10 min read · Compare total, negotiate base
Two offers land. One shows $95,000 base. The other shows $88,000. Your gut picks the bigger number. Your rent bill might disagree once premiums and match enter the math, and you won't see that until you line the packages up.
Recruiters quote total comp because it sounds strong. Candidates fixate on base because it's the line that hits the bank account every two weeks. Both views are incomplete until you tear the package apart line by line. That's not cynicism. It's how offer letters are written.
Before you compare dollars, make sure you're getting offers at the right level. Check your resume for free against a posting at the band you want. Being screened into the wrong level costs more than any perk fixes, and you can't negotiate your way out of a junior band with a signing bonus.
Below you'll see sample breakdowns with illustrative numbers inside the examples only, before/after comparison blocks, and a copy-paste worksheet for your own offers tonight. We're not picking a winner for you. We're showing the math so you can.
Quick Wins
- Ask for the full offer breakdown in writing before you respond.
- Convert retirement match to dollars, not just a percentage.
- Price health premiums monthly for both plans before you decide.
Total compensation vs base salary: what's in each line
Base salary is one row on the letter. Total compensation is every row the employer funds because you show up. The gap between them is where expensive mistakes hide.
| Component | Guaranteed? | How to price it |
|---|---|---|
| Base salary | Yes | Face value. This compounds |
| Signing bonus | Usually | One year only. Check clawback if you leave early |
| Performance bonus | No | Use last year's actual payout, not the target |
| Retirement match | Mostly | Base times match percent. Check vesting |
| Health premiums | Yes | Monthly cost times 12. Compare deductibles too |
| Paid leave | Yes | Extra days times daily rate (base divided by 260) |
| Private equity | No | Upside only unless you can value the grant |
Ask for the breakdown in writing. A verbal "package is around six figures" is not something you can compare, and the request is normal.
When recruiters summarize total comp on a call, I've learned to ask which lines are guaranteed before anyone celebrates the headline number.
Sample offer teardowns with before/after blocks
Numbers below are illustrative examples for a fictional candidate comparing two corporate offers. They're templates, not market data.
Teardown 1: headline base misleads
Before: Offer A shows $95,000 base. Offer B shows $88,000 base. Candidate plans to accept A because the base line is larger.
After: Same offers priced annually. Offer A totals about $93,050 once weak bonus history, higher premiums, and a smaller match are counted. Offer B totals about $104,400.
| Line (example) | Offer A | Offer B |
|---|---|---|
| Base | $95,000 | $88,000 |
| Bonus (realistic) | $0 (paid twice in five years) | $8,800 (paid annually) |
| Retirement match | $2,850 (3%) | $5,280 (6%) |
| Health premiums you pay | −$4,800/year | −$1,080/year |
| Extra paid leave value | 15 days | 25 days (about $3,400) |
| Rough annual total (example) | $93,050 | $104,400 |
Premiums and match did more work than bonus in that example. Neither appears in the job posting.
Teardown 2: signing bonus vs higher base
Before: Offer C: $82,000 base plus $10,000 signing bonus. Offer D: $86,000 base, no signing bonus. Candidate treats C as richer because of the lump sum.
After: Year one favors C by about $6,000. Year two favors D by about $4,000 because base compounds and signing bonus does not repeat.
Signing bonuses are real cash, but they're one-time. If you expect to stay past year one, model both years before you pick. A $4,000 base gap becomes $8,000 over two years while a $10,000 signing bonus doesn't repeat unless you renegotiate at offer time again.
Rule of thumb for this example: take the signing bonus when you need cash in year one and plan a short stay. Take the higher base when you'll still be there when the bonus is gone.
Teardown 3: OTE vs base in sales (example)
Before: Posting quotes $140,000 on-target earnings. Offer letter shows $70,000 base plus commission.
After: Candidate asks what share of the team hit quota last year. Answer: under half. They value commission at 50% of target and compare $105,000 realistic first year against a $92,000 base-heavy offer elsewhere.
On-target earnings is a ceiling, not a paycheck. Base is what you plan rent around.
Copy-paste offer comparison worksheet
Copy-paste worksheet (fill with your numbers)
Offer name: _____________ vs _____________
Base salary: _____________ vs _____________
Signing bonus (year 1 only): _____________ vs _____________
Bonus last year actual (not target): _____________ vs _____________
Retirement match in dollars: _____________ vs _____________
Annual health premiums you pay: _____________ vs _____________
Extra paid leave days times daily rate: _____________ vs _____________
Guaranteed subtotal: _____________ vs _____________
Variable upside (discounted): _____________ vs _____________
Read how to compare two offers with a scorecard when you want weights beyond cash. Read negotiating equity vs salary basics when private stock is on the letter.
Comparison traps that flip the winner
Comparing base on one offer to total on another. The most common error. Match guaranteed to guaranteed first.
Counting bonus at target. Use what people at your level actually received last year, or use zero.
Ignoring health premiums. A four-figure annual gap between plans is routine and rarely mentioned on the call.
Valuing private equity at the headline grant. Treat it as upside until you can price strike, vesting, and exit odds.
Trading base for perks. Perks change with a memo. Base compounds into the next offer.
Accepting a verbal summary. Get the breakdown in writing before you counter or accept.
Forgetting year-two math. A richer year one from a signing bonus can lose to a higher base by the second anniversary. Run the worksheet for both years when you're weighing a lump sum against salary.
Get to the offer stage
Offer math only matters once you're in the conversation. Upload your file to the free ATS resume checker and confirm scope on page one matches the level you're targeting. Strong packages usually sit behind stricter screens.
For top reqs, pair a tailored file with a letter that names scope, not just title. The cover letter generator drafts openers that reference metrics from your latest role without repeating the whole resume.
Your worksheet tonight
Total compensation vs base salary isn't a philosophy debate. It's arithmetic on guaranteed cash first, discounted variable second. Use the copy-paste worksheet on your two real offers, price premiums and match in dollars, and only then argue base in negotiation.
- Compare guaranteed subtotals before you chase headline total comp.
- Ask what bonus actually paid last year at your level.
- When base is capped, move to signing bonus, review date, or leave.
Fill the worksheet, then make sure more offers keep coming. Run a free resume check so you're comparing packages from the band you actually want.
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Frequently asked questions
Base salary is the fixed amount you are paid for doing the job. Total compensation adds everything else the employer spends on you: bonus, commission, equity, retirement contributions, health coverage, and paid leave. Two offers with identical base salaries can differ substantially once those are counted.
Only if you can afford the variable part not arriving. Base is guaranteed and compounds into every future raise and offer. Bonus depends on performance and company results, and private company equity may never convert to cash at all.
Price the ones with a real cash equivalent. A retirement match is a percentage of your salary you would otherwise have to fund yourself. Health premiums are a monthly figure you can compare directly. Extra paid leave can be valued as a fraction of your daily rate.
For most people, yes. It sets your floor, it is what future percentage raises apply to, and it is the anchor for your next job's offer. Prioritise base unless the variable portion is both large and reliable.
A signing bonus, a higher performance bonus target, additional equity, an earlier review date, extra paid leave, or funded certification. These come from different budgets, so a hard cap on base often does not apply to them.