Home » Planning » Raise vs New Job

Raise vs New Job Calculator

Compare staying for a raise versus taking a new job offer. Factor in salary, benefits, commute, PTO, and total compensation.

Your data stays in your browser. Nothing is stored or sent to any server.
Built by Abiot Y. Derbie, PhD — Postdoctoral Research Fellow. Quantitative researcher specializing in statistical modeling and data-driven decision systems.

Enter Your Details

Current Job (with raise)

New Job Offer

0
helpful
Create a free account to save and compare your results across devices.

This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer

Things to Know

Essential concepts for understanding your results

Pay Gap
How much more do job-switchers earn?

Workers who change jobs earn 10-20% more per move on average, while internal raises average 3-5% annually. Over a 10-year period, strategic job-switching (every 2-3 years) can result in 30-50% higher cumulative earnings compared to staying at one employer. A $70,000 worker receiving 4% annual raises earns $103,000 after 10 years. The same worker switching twice for 15% increases earns $137,000 — a $34,000/year gap from the same starting point.

Hidden Value
What is the value of your current position beyond salary?

Before jumping for more money, quantify what you would lose: unvested equity/RSUs (could be $10,000-100,000+), pension accrual (each additional year adds 1-2.5% of final salary for life), PTO accrual (senior employees often get 4-5 weeks vs 2 weeks at a new company), seniority benefits (better projects, schedule flexibility, institutional knowledge), and relationship capital (professional network, mentorship, trust). A $15,000 raise that resets PTO, unvests $40,000 in equity, and requires proving yourself again may not be a net gain.

Decision Framework
When should you take the new job vs negotiate a raise?

Take the new job if: the raise exceeds 15%, career growth is stagnant, company trajectory is declining, or the new role offers fundamentally better opportunities. Negotiate internally if: the gap is under 10%, you love your team/culture, unvested compensation is significant, or the new company has red flags. Third option: use the offer as leverage for an internal counter-offer. Approximately 50-60% of employers will counter-offer — but accept a counter-offer cautiously, as 50% of accepted counter-offers result in the employee leaving within 18 months anyway.

Raise vs New Job Calculator: Which Pays More Over Time?

A raise vs new job calculator compares the total compensation impact of staying (with a raise or promotion) versus switching employers. According to the Federal Reserve Bank of Atlanta's Wage Growth Tracker, job switchers in 2024 saw median wage growth of 5.6% versus 4.1% for job stayers — a persistent gap that has existed for decades.

Enter your current salary, expected raise amount, potential new job offer, and projected growth rates. The calculator shows 5-year and 10-year total compensation under each scenario.

Why Job Switching Pays More

The BLS reports that the average annual raise for existing employees is 3.5-4.5% (2024 data). The average salary increase when switching jobs: 10-20%. Over a 10-year career, this gap compounds dramatically:

Example: Starting salary $70,000. Staying with 4% annual raises: $70,000 → $103,600 after 10 years. Switching every 3 years with 15% jumps: $70,000 → $80,500 (year 3) → $92,575 (year 6) → $106,461 (year 9) → reaching approximately $115,000 by year 10.

Cumulative earnings difference over 10 years: $67,000 more from strategic job switching. The gap comes from the fact that raises compound on the base salary, while job switches reset the base higher. Two 15% switches produce the same 10-year endpoint as ten years of 4% raises — but delivered earlier, producing more total earnings.

Bureau of Labor Statistics data confirms: the median tenure at a single employer is 4.1 years (2024). Workers aged 25-34 average just 2.8 years per employer. Strategic switching is the norm, not the exception.

When Staying Makes More Sense

Strong promotion pipeline: If your employer promotes every 2-3 years with 15-25% salary increases, staying may match or exceed external switching. Internal promotions often include expanded equity grants, better vesting schedules, and institutional knowledge that accelerates further advancement.

Exceptional benefits: Some benefits are difficult to replace: pension plans, generous employer 401(k) matches (8%+), below-market health insurance, equity with significant unvested value, sabbatical eligibility, or unique perks (tuition reimbursement, housing). Quantify these benefits' dollar value before comparing to a new offer's base salary alone.

Approaching a vesting cliff: If you have $50,000 in unvested stock vesting in 6-12 months, staying for the vest and then switching captures the full value. A new employer may offer a "sign-on bonus" to compensate for forfeited equity — negotiate this explicitly.

Total compensation comparison: Always compare total compensation, not base salary. Include: base salary, bonus (average over 2-3 years), equity/RSUs (annualized value), employer 401(k) match, health insurance premium difference, PTO value, and any unique benefits. A $90,000 base with $15,000 bonus + $10,000 equity + $8,000 match = $123,000 total comp. A new job at $100,000 base with $5,000 bonus + $0 equity + $4,500 match = $109,500. The "raise" is actually a $13,500 pay cut.

Frequently Asked Questions

How much of a raise should I expect annually?
Average annual raise in the US: 3.5-4.5% (BLS 2024). Promotions: 10-20%. Cost-of-living adjustment only: 2-3% (below inflation in high-inflation years = effective pay cut). If your raises consistently fall below 4%, your purchasing power is declining. Compare your raise to CPI (inflation rate) — anything below CPI is a real pay cut regardless of the nominal increase.
How much more should a new job pay?
Target at minimum 10-15% more in total compensation to justify the transition costs (lost seniority, new learning curve, potential relocation, resetting PTO accrual). Below 10%: the disruption cost may exceed the benefit. At 20%+: the switch is almost always worth it financially. Factor in benefits, equity, culture, commute, and career trajectory — not just base salary.
How often should I switch jobs?
Every 2-4 years during the growth phase of your career (ages 25-40) maximizes earnings trajectory. After age 40: stability and seniority become more valuable, and switching frequency should decrease. BLS data shows median tenure of 4.1 years; workers aged 25-34 average 2.8 years. Switching too frequently (every year) raises red flags for employers; too rarely (8+ years without promotion) suggests complacency or low ambition.
Should I take a counteroffer from my current employer?
Proceed with extreme caution. Research shows that 50-80% of employees who accept counteroffers leave within 18 months anyway — the underlying issues (culture, growth, management) that prompted the job search remain. The counteroffer may also create resentment: your employer now knows you were looking, and you may be first on the list in future layoffs. If you choose to accept, ensure the counteroffer addresses the root cause, not just the salary.
Is job hopping bad for my career?
Not in most industries today — strategic moves every 2-4 years are expected and even respected. Hiring managers understand that loyalty without advancement is stagnation. The key: each move should show progression (title, responsibility, compensation). Moving laterally every 18 months with no growth IS a red flag. Moving every 2-3 years with clear upward trajectory is a sign of ambition and value in the market.

You Might Also Need

50/30/20 BudgetPlan your budgetCost of LivingCompare citiesInflationFuture purchasing powerTip CalculatorCalculate tips
Powered by FinCalcs — Free Financial Calculators