1. What is the Better Off Calculation?

The Better Off calculation measures the financial difference between a new income and current income. It helps individuals assess whether a new job offer or income opportunity would provide a meaningful financial improvement.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• New Income — Potential or offered income amount
• Current Income — Present income amount

Explanation: A positive result indicates financial improvement, while a negative result suggests the change would leave you worse off financially.

3. Importance of Better Off Calculation

Details: This calculation is crucial when evaluating job offers, career changes, or relocation opportunities to objectively compare financial outcomes.

4. Using the Calculator

Tips: Enter both income amounts in USD. The calculator will show the difference between them. Consider both pre-tax and post-tax amounts for a complete picture.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net income?
A: For most accurate comparison, use net (after-tax) income. However, comparing gross incomes can be useful for initial evaluation.

Q2: What other factors should I consider beyond income?
A: Benefits, bonuses, retirement contributions, work-life balance, commute costs, and career growth potential should all be considered.

Q3: How much better off should I aim to be?
A: Generally at least 10-20% increase is recommended to account for transition costs and risks, but this varies by individual circumstances.

Q4: Does this account for cost of living differences?
A: No, this is a simple income comparison. You may need to adjust for local cost of living differences separately.

Q5: What if my income is irregular?
A: Use annualized averages or projections for both current and new income to get comparable figures.