The offer letter is incomplete on purpose
US offers lead with gross base salary because it is standardized and easy to negotiate. Landlords, grocers, and credit-card minimums do not care about gross. Before you accept, translate the offer with Net salary and a written monthly cash budget.
Build a fair comparison table
| Component | Offer A | Offer B | Notes |
|---|---|---|---|
| Base gross | $72,000 | $78,000 | Headline number |
| Expected bonus | 10% target | 0 | Probability-weight it |
| Employer 401(k) match | 4% of base | 3% of base | Long-term, not monthly cash |
| Employee medical premium | $180/mo | $95/mo | From benefits docs |
| Commute / parking | $220/mo | $40/mo | After-tax cash |
| State income tax context | Higher | Lower | Rough model only |
Worked comparison (illustrative)
Same person, two bases
Assume single filer, 5% traditional 401(k), $150/mo pre-tax health, no bonus. Offer A $72k vs Offer B $78k. The gross gap is $6,000/year (~$500/month). After marginal tax and payroll taxes, take-home gap might land closer to the mid-$300s/month depending on state — and can be erased if Offer B adds a $250 commute or higher rent near the office.
Convert every offer into monthly decision cash
- Annualize base + realistic bonus (probability × target).
- Run Net salary for each offer with the same filing status and benefit elections.
- Subtract medical premiums if they were not already in the model.
- Subtract commute, parking, professional clothes, and tools required by the role.
- Add employer HSA contribution or other cash-like benefits if guaranteed.
- Compare residual cash after rent/mortgage, minimum debt payments, and groceries.
Hourly offers need an honesty layer
Hourly roles can look richer than salary until you annualize realistic hours. Use Hourly rate and ask for historical overtime patterns. A $38/hour role at 35 scheduled hours is not the same as 40+ OT culture.
Taxes: model ranges, not false precision
State and local tax can dominate the comparison when offers span locations. If your tool only sketches federal-heavy models, treat state lines as scenario inputs from current stubs or published calculators, then keep a buffer.
Benefits that change the winner
- Equity with long vesting — valuable, but not rent.
- Student loan contributions or tuition help.
- Remote stipend that actually covers internet/office costs.
- Lower deductible medical plan that reduces expected out-of-pocket.
Decision rule you can defend later
Pick the offer with the higher probability-weighted monthly cash after fixed costs, unless career optionality or health constraints clearly dominate. Write the assumption list in one page. If the company changes bonus structure later, you will know what broke.
Disclaimer: Educational only — not tax, career, or legal advice.