Should I accept a promotion or look for a new job?

The right answer depends on the financial gap and the trajectory. Promotions often offer smaller immediate gains but preserve tenure, institutional knowledge, and unvested equity. External moves typically offer larger jumps (20-40%) but reset vesting and carry cultural risk. This calculator quantifies the financial gap, the break-even point, and the 10-year wealth difference so you can focus on the career factors.

How much more should a new job pay than a promotion?

As a rule of thumb, external moves for senior professionals should offer at least 15-25% more in total compensation to justify the risk and disruption — factoring in lost unvested equity, cultural adjustment, and opportunity cost. The right premium depends on how quickly the new role compounds and how much unvested value you would leave behind.

What is the break-even point in a job change?

The break-even point is the year in which the cumulative total compensation of one path overtakes the other. A new job with a sign-on bonus may lead in Year 1, but a promotion at a faster-growing company could catch up and pass it later. Knowing the break-even year tells you how long you must stay for a move to pay off.

What is the lifetime wealth gap?

The lifetime wealth gap is the cumulative difference in total compensation between the two paths over a long horizon — here, ten years. Because salary growth and equity compound, small annual differences can grow into a six-figure gap. This figure reframes the decision from "which pays more next year" to "which builds more wealth over a career stage."

What is the financial impact of leaving unvested equity behind?

Unvested equity is one of the most significant costs of an external move. If you have $200,000 in unvested RSUs vesting over two years and the new company offers $50,000 in annual equity, you are effectively paying a large net cost to move — before any sign-on. Always quantify unvested equity before comparing offers.

How are the multi-year projections calculated?

Both paths are projected forward assuming a steady annual salary growth rate (4% by default) applied to base, with bonus calculated as a percentage of the growing base, equity added each year, and any sign-on counted only in Year 1. The tool then compares cumulative totals at 1, 3, 5, and 10 years.

What factors beyond compensation matter in this decision?

Beyond the numbers, consider organizational trajectory, title and scope progression, executive sponsorship and visibility, learning velocity, the brand value of the new employer, and your network. Compensation quantifies the financial trade-off; everything else determines whether it is the right career move.

Promotion vs New Job Calculator

Compare the full financial impact of a promotion versus a new external opportunity across one, three, five, and ten years — including break-even and lifetime wealth gap.

How to compare a promotion versus a new job

Enter the promotion offer — Add the promoted base salary, bonus target, and annual equity value.
Enter the new job offer — Add the external base salary, bonus target, sign-on bonus, and annual equity.
Compare the paths — Review cumulative totals at 1, 3, 5, and 10 years side by side.
Read break-even and wealth gap — See which path leads, the year one overtakes the other, and the 10-year lifetime wealth gap.

Frequently Asked Questions

Should I accept a promotion or look for a new job?: The right answer depends on the financial gap and the trajectory. Promotions often offer smaller immediate gains but preserve tenure, institutional knowledge, and unvested equity. External moves typically offer larger jumps (20-40%) but reset vesting and carry cultural risk. This calculator quantifies the financial gap, the break-even point, and the 10-year wealth difference so you can focus on the career factors.
How much more should a new job pay than a promotion?: As a rule of thumb, external moves for senior professionals should offer at least 15-25% more in total compensation to justify the risk and disruption — factoring in lost unvested equity, cultural adjustment, and opportunity cost. The right premium depends on how quickly the new role compounds and how much unvested value you would leave behind.
What is the break-even point in a job change?: The break-even point is the year in which the cumulative total compensation of one path overtakes the other. A new job with a sign-on bonus may lead in Year 1, but a promotion at a faster-growing company could catch up and pass it later. Knowing the break-even year tells you how long you must stay for a move to pay off.
What is the lifetime wealth gap?: The lifetime wealth gap is the cumulative difference in total compensation between the two paths over a long horizon — here, ten years. Because salary growth and equity compound, small annual differences can grow into a six-figure gap. This figure reframes the decision from "which pays more next year" to "which builds more wealth over a career stage."
What is the financial impact of leaving unvested equity behind?: Unvested equity is one of the most significant costs of an external move. If you have $200,000 in unvested RSUs vesting over two years and the new company offers $50,000 in annual equity, you are effectively paying a large net cost to move — before any sign-on. Always quantify unvested equity before comparing offers.
How are the multi-year projections calculated?: Both paths are projected forward assuming a steady annual salary growth rate (4% by default) applied to base, with bonus calculated as a percentage of the growing base, equity added each year, and any sign-on counted only in Year 1. The tool then compares cumulative totals at 1, 3, 5, and 10 years.
What factors beyond compensation matter in this decision?: Beyond the numbers, consider organizational trajectory, title and scope progression, executive sponsorship and visibility, learning velocity, the brand value of the new employer, and your network. Compensation quantifies the financial trade-off; everything else determines whether it is the right career move.

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