Job Offer Comparison
Compare two tech offers side by side — guaranteed take-home, variable upside, equity, and tax, all calculated live in your browser with zero data sent anywhere.
⚡ New Regime FY 2026-27: slabs, 87A rebate & marginal relief applied.
⚡ New Regime FY 2026-27: slabs, 87A rebate & marginal relief applied.
Company B offers higher guaranteed monthly pay — safer for budgeting.
Company B has the higher Year 1 total value (cash + equity).
Why guaranteed pay is the number that matters most
Most offer comparisons fixate on the largest number: the CTC, the total package, the number in bold on the letter. The problem is that the largest number is often the most optimistic one — it assumes full variable payout, first-year equity at grant price, and a joining bonus that disappears by Year 2. None of those assumptions hold in a bad year, and some don't hold in a good one either.
The figure that actually determines how you live month to month is the guaranteed in-hand salary: what hits your bank account without any assumptions about performance ratings, business targets, or company health. That's why this tool shows it as the primary metric — not to downplay upside, but to prevent you from budgeting against money that might not arrive.
Variable pay: target versus realistic
A ₹5L variable target at 100% payout and a ₹5L variable target at 50% payout are not the same offer. The target figure on an offer letter is set by the company and represents the maximum achievable, not the average outcome. The default 80% assumption here is conservative; adjust it to match what employees at that company actually receive in a typical year — that information is usually available on platforms like Glassdoor or by asking the recruiter directly.
Equity: paper value versus real value
RSUs from a publicly listed employer have a real, observable price. ESOPs from a pre-IPO startup have a grant price that may never convert into actual money — it depends on a future liquidity event, the strike price relative to the exit valuation, and whether you're still there to exercise. The equity row in this tool is a useful directional comparison between two listed-company RSU grants, but should be treated as speculative for pre-IPO options. Year 1 vesting is shown because that's what you actually earn in the period covered by the rest of the comparison.
The joining bonus trap
A joining bonus makes Year 1 look dramatically better than every subsequent year. The Year 2 Recurring Cash figure removes it, showing what the role is actually worth on an ongoing basis. If Offer A has a higher Year 1 total but a lower Year 2, you're being paid a premium to make the switch — not to stay. Factor in whether there's a clawback clause if you leave within 12 or 24 months.
Frequently asked questions
Why is 'Guaranteed Monthly Cash' calculated only on fixed base salary?
Variable pay and bonuses are contingent on performance targets, business conditions, and often company discretion. Budgeting rent, EMIs, or SIPs against money that may not arrive is a common financial mistake. The guaranteed figure shows what you can count on every month regardless of how the year goes.
What does the 80% variable payout default mean?
It means the tool assumes you'll receive 80% of your stated variable target — a conservative assumption reflecting that most people don't hit 100% of their performance bonus every year. You can drag the slider to 100% to see the best-case scenario, or lower it to model a difficult year.
How is income tax estimated here?
This tool uses the New Tax Regime slabs for FY 2026-27, with the ₹75,000 standard deduction. It applies the correct Section 87A rebate (zero tax up to ₹12L taxable income) and marginal relief just above the threshold — the same engine used across every salary calculator on this site. Old regime deductions like HRA or 80C are not modelled, keeping the comparison simple.
How is the Provident Fund deduction calculated?
Since there's no separate basic salary input, the tool assumes basic = 50% of fixed base — a common private-sector split. Employee PF is then 12% of basic, capped at ₹21,600/year (the statutory ₹15,000/month wage ceiling applied by most tech employers). This amount is deducted before calculating take-home.
What does 'High Variable Risk' mean?
The flag appears when variable pay accounts for more than 25% of total cash compensation (fixed + variable target). At that level, a below-average performance cycle — or a missed company target — can significantly cut your actual annual income. It's a signal to factor in that risk when comparing offers, not a reason to reject the role.
How does the ESOP / RSU comparison work?
The tool shows Year 1 equity as: total grant value × Year 1 vesting percentage. This is paper value at the grant price — actual value at the time of vesting depends on the company's share price. Treat it as directionally useful, especially for comparing public companies (where the current price is known) versus early-stage equity (which is speculative).
What is Year 2 Recurring Cash?
Year 2 removes the joining bonus and recalculates cash as: fixed base + expected variable − PF − income tax. It shows the steady-state annual cash once the one-time welcome payment is gone — often the more honest number for comparing long-term earnings.
How does the Share Comparison link work?
Clicking Share encodes your current inputs into the URL as a Base64 string in the hash (#data=...). No data is sent to any server. Paste the link and the other person's browser decodes and restores your exact inputs locally.
This is an estimate for informational purposes, not tax advice. Verify with a chartered accountant or at incometaxindia.gov.in before making financial decisions.
Last verified: August 2026 · FY 2026-27 rates