Guide
Salary versus bonus, how to compare fixed and variable pay
Compare compensation packages in a way that separates guaranteed pay from variable upside and keeps the tax view honest.
The gross totals can mislead you
Two packages can have the same total headline value and still feel very different in practice. A higher salary gives you more certainty. A bonus can improve the upside, but only if it is actually paid.
Compare the fixed and variable pieces separately
A useful approach is to ask two questions. First, what is the after-tax position if the package pays exactly as described? Second, how much of the advantage depends on bonus delivery rather than guaranteed pay? The salary vs bonus calculator handles the first part. Your judgement handles the second.
Why monthly framing helps
Base salary affects month-to-month cash flow. Bonus often arrives later or may vary. That is why monthly take-home framing can matter more than annual headline value when two packages look close.
What this still excludes
Equity, leave, pension generosity, commute costs, and role risk are not part of this calculation. If you need the whole package view, use the job offer comparison calculator or keep several options in your workspace and add notes around the non-cash trade-offs.
How to use PayPath here
Run the relevant calculator for your live numbers, review the methodology if the assumptions matter to your decision, and save the strongest scenarios in the workspace if you are comparing more than one option.