Pay Increase Worth It Calculator

It starts with your gross pay increase (new annual gross pay − current annual gross pay), then estimates the after-tax portion of that incremental raise using your effective tax rate. From that after-tax raise, it subtracts extra annual commuting/WFH costs and subtracts the value of extra time (extra hours × your value of time). Finally, it adds any annual value gained or lost from benefit changes.

Taxes are modeled as a single effective rate applied only to the incremental pay increase (not your whole income), so your true after-tax amount may differ if your marginal rate changes. Time cost is treated as a simple cash-like tradeoff using a constant hourly value—this ignores stress, burnout, and long-term career effects unless you reflect them through your time/benefits inputs. Benefit changes are captured only if you enter their annual value (positive or negative).

If your extra annual time cost is 0 hours/year, the calculator can’t meaningfully compute a net hourly value (since it would require dividing by zero). In that case, rely on the net annual benefit verdict instead. Also note that if benefit changes are negative and large, they can make the overall offer “Not worth it” even when the gross pay increase is substantial.

Don’t enter negative commuting/WFH costs or negative time costs—use zero instead. Make sure your “effective tax rate on incremental income” reflects the taxes specifically on the extra pay you’d earn (a too-low rate will overstate the benefit). Lastly, this tool doesn’t account for one-time moving expenses, equity vesting schedules, or changes in job security/promotion potential unless you add them into your benefit or cost fields.