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Promotion Impact Calculator 2026

By Sammy S. · Founder · AuthorUpdated for 2026

Free promotion impact calculator: compare staying for a promotion vs switching jobs now. Timeline simulator, equity refresh, bonus changes, career ladder bands, and tax-aware 12-month income — should you wait for promotion or switch?

+15–25%Avg external switch premium
+10–18%Avg internal promo raise
12–36 moTypical promo timeline
~$80K+Sign-on that offsets 2-yr vest gap
1

Enter your comp

Current salary, bonus, equity vest, and career level. The level auto-fills typical promoted comp.

2

Set promo details

Months until promotion (1–24), probability (0–100%), and promoted comp. Use presets or type a custom raise %.

3

Add the offer

External base, bonus, sign-on, and 4-year equity grant. Use switching premium presets or enter any custom %.

4

Read the verdict

12-month expected income, 5-year timeline, tax bracket shift, and career ladder — all after-tax.

Filing status

Promotion timelineadjust to see verdict change
mo
Now6 mo12 mo18 mo24 mo36 mo
%
0%25%50%75%100%

Compare paths

Band: $165,000 – $230,000

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$
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RSU/options vesting in current year

Market salary: +37% vs national avg · salaries auto-adjust when you change state

3 years

12-month verdict

Switch now

Switching now puts you $28,335 ahead over the next 12 months vs waiting 12 months for a promotion.

$149,886 × 70% (promoted) + $149,886 × 30% (not promoted) = $149,886 expected

Stay (expected)

$149,886

70% promo odds weighted

Switch now

$178,221

12-mo take-home

3-yr stay

$524,304

cumulative

3-yr switch

$502,215

cumulative

Stay — if promoted

$149,886

12-mo after-tax take-home

Stay — if not promoted

$149,886

12-mo at current level

Switch now

$178,221

12-mo after-tax take-home

Base salary$198,000
Annual bonus$24,000
Equity vest (yr 1)$30,000
Sign-on bonus(yr 1 only)$30,000
Total gross$282,000
Tax rate (37% eff.)−$103,779

Decision insights

  • •Switching now puts you $28,335 ahead over the next 12 months.
  • •At 70% promotion odds in 12 months, weigh the risk of no promo against the external offer.
  • •New grant on promotion adds ~$25,000/yr in year-one vest value.
  • •Sign-on bonus ($30,000) boosts year-one switch comp but doesn't repeat.
  • •Over 3 years, staying wins — short-term and long-term paths diverge.

Real-world examples: should I stay for my promotion or take the offer?

The stay-vs-switch question looks different at every career stage. Here are three concrete scenarios that cover the most common cases — each with numbers you can replicate in the calculator above.

High promo probabilityThe patient L4: wait 12 months vs take a $30K bump now

Scenario: You're an L4 software engineer earning $195K base + $23K bonus + $32K equity vest/yr in CA. Your manager has committed to an L5 review cycle in 12 months (70% probability). A recruiter is offering $225K base + $27K bonus + $80K/yr equity + $40K sign-on.

Stay path

If promoted (70%): $~245K base, $37K bonus, new $220K grant → ~$94K after-tax in year 1. Expected (weighted): ~$84K after-tax.

Switch path

Switch: $225K + $27K + $20K equity vest (yr 1 cliff) + $40K sign-on → ~$88K after-tax in year 1.

Verdict

Switch wins year 1 (+$4K) due to the sign-on. But by year 3, the promo path's equity refresh adds ~$60K the switch path never gets. Verdict: take the offer only if the promo probability is under 55% or the timeline slips past 15 months.

Key takeaway: The sign-on is year-1 only. Model year 2 and 3 to see the real answer.

Low promo probabilityThe overdue senior: stuck at L5 for 24 months with a strong outside offer

Scenario: You're L5 with 24 months at level, earning $275K base + $41K bonus + $55K equity in WA state. Promo has slipped two cycles (estimated 35% probability, 18 months away). Outside offer: $310K base + $46K bonus + $100K/yr equity + $50K sign-on.

Stay path

Expected stay (35% promo, 18 months): ~$78K weighted 12-month take-home.

Switch path

Switch: $310K + $46K + $25K equity yr 1 + $50K sign-on → ~$102K after-tax yr 1.

Verdict

Switch wins by $24K in year 1 and by over $85K on a 3-year horizon. When promo probability is below 40% and the timeline is 18+ months, switching almost always wins financially.

Key takeaway: Two slipped cycles is a strong signal. Don't anchor to sunk time at level.

Unvested equity stakesThe equity cliff dilemma: 2 years into a 4-year vest with a competing offer

Scenario: You're 2 years into a $200K/4yr RSU grant ($100K still unvested — years 3 and 4). A new employer offers $60K sign-on and a $180K/4yr new grant. Your promo is 6 months away with 75% probability.

Stay path

Stay + promo: $100K unvested RSUs vest in years 3–4, PLUS a new promo grant of $160K → $40K vests in yr 1 post-promo. Plus refresh. Total 3-yr equity: ~$180K.

Switch path

Switch: $60K sign-on (yr 1 only) + new $180K grant. Year-1 cliff means $0 equity vest in yr 1 (or partial at some companies). Years 2–4: $45K/yr. Total 3-yr equity: ~$150K.

Verdict

Staying wins by ~$30K on equity alone over 3 years, plus the promo base increase. With a 75% promo probability 6 months away, the expected case strongly favors staying. The sign-on does not compensate for forfeited unvested RSUs.

Key takeaway: Always model the full unvested RSU value before accepting any offer that requires forfeiture.

What a promotion is actually worth: level-by-level comp bands (2026)

Total comp at promotion isn't just the base raise. You typically get a higher bonus target percentage, a new equity grant, and ongoing annual refreshes — all taxed as ordinary income at vest. Here are typical ranges for tech individual contributors in high-cost markets (SF / NYC / Seattle):

LevelBase rangeBonus targetEquity (4-yr)Typical raise on promo
L3 (Junior / IC3)$100K–$160K10%$50K15–20%
L4 (Mid / IC4)$150K–$220K12%$120K12–18%
L5 (Senior / IC5)$210K–$320K15%$200K10–15%
L6 (Staff / IC6)$300K–$450K18%$350K8–12%
L7 (Principal+ / IC7)$420K–$600K20%$500K8–10%

The equity cliff most people miss

A promotion from L4 → L5 at a large tech company often includes a new 4-year RSU grant of $160K–$250K. The first tranche (25%) vests in your promo year, adding $40K–$62K of ordinary income — on top of your existing vest. This single-year equity bump can be larger than the base raise.

The tax bracket bump

Promotion raises plus equity vests often push total income across a federal bracket boundary. An L4→L5 promo with a new grant can add $60K–$100K of taxable income in year one alone, moving from the 24% to 32% or 35% bracket. Use the Tax Impact tab in the calculator to see your specific scenario.

The stay-or-switch decision: what the data actually says

Most external job switches yield a 15–25% base salary increase, while internal promotions typically deliver 10–18%. But that comparison misses timing, equity refresh, and sign-on dynamics.

When staying wins

  • Promotion is highly probable (70%+) and within 6–12 months
  • New equity grant on promo is large relative to switch offer
  • You have significant unvested RSUs at your current employer
  • Sign-on at new employer doesn't offset forfeited cliff vest

When switching wins

  • Promotion timeline is uncertain or 18+ months away
  • External offer includes a large sign-on (make-whole bonus)
  • You're below market rate and the band at current employer is capped
  • New offer's base is ≥20% higher — compounding effect over years

Negotiation leverage

  • Use an external offer to accelerate your internal promo timeline
  • Ask for a counter with promo + market adjustment — companies often move fast
  • Get the promotion cycle in writing before declining outside offers
  • A signed offer letter raises probability — use it even if you prefer to stay

How equity refresh changes the long-run math

Annual equity refreshes compound dramatically over a 3–5 year horizon. Most senior ICs (L5+) at large tech companies receive annual refresh grants of $20K–$80K/yr on top of the original 4-year grant, making the effective annual equity income far higher than the grant headline suggests.

Example: L5 stay vs L5 external offer · 3-year horizon · $265K base · CA single filer
ComponentStay (promoted)Switch externally
Base salary (yr 1)$265,000$255,000
Bonus (target)$39,750 (15%)$30,600 (12%)
Promo / sign-on grant (4-yr)$200,000$120,000
Yr-1 equity vest (promo grant 25%)$50,000$30,000
Annual refresh (yr 2+)$30,000/yr$0
3-yr cumulative equity vest~$170,000~$90,000
3-yr after-tax take-home (est.)~$685,000~$615,000

Refresh is a retention tool

Companies issue annual refreshes specifically to reduce external switching risk. If you're at L5+ and haven't negotiated a refresh schedule, ask HR — most companies have a standard refresh budget of 15–30% of your original grant per year.

The '4-year cliff' fallacy

External offers often quote a 4-year RSU total. Year 1 vests only 25%. After year 3 at a company with refreshes, you may vest 40–60% of your original grant plus accumulated refresh grants — far more than a new 4-year grant's year-1 tranche.

Double-trigger acceleration

Check your RSU grant agreement for double-trigger acceleration (change-of-control + termination). At some companies, if acquired, unvested RSUs accelerate — making staying more valuable if an acquisition is likely.

How the promotion impact calculation works

Most salary tools just multiply your current salary by a percentage. This calculator models the full financial decision across time, taxes, and uncertainty.

12-month expected income (the verdict)

The headline number is a probability-weighted expected value:

Expected stay = (take-home if promoted × prob) + (take-home if not × (1 − prob))

Income before and after your promotion month is combined into a single gross figure before applying taxes — this correctly captures progressive bracket effects (taxing two small chunks separately understates total tax vs. taxing the combined annual income).

Multi-year timeline

Each year is the probability-weighted average of the promoted and not-promoted paths. The promoted path correctly handles promo timing: if your promotion is in month 18, year 1 is fully at current comp and year 2 is split (months 13–18 at current, months 19–24 at promoted). Equity refresh begins the calendar year after the promo year. The switch path vests the 4-year grant at 25%/yr for years 1–4; year 5+ has no remaining initial grant.

Tax calculations

All income types (base, bonus, RSU vest, sign-on) are combined as ordinary income for the year and taxed using 2026 federal brackets, your state's marginal rates, FICA (Social Security 6.2% up to wage base, Medicare 1.45% + 0.9% above $200K), and SDI where applicable. Results show after-tax take-home, not gross. Use the tax calculator if you want a per-paycheck breakdown.

What the calculator does not model

401(k) match differences, health insurance costs, PTO value, relocation costs, vesting acceleration on departure, or company-specific performance multipliers on bonus. For a full two-offer comparison including benefits, use the Offer Comparison Calculator.

Using an outside offer to negotiate your promotion — without burning bridges

An external offer is the single most effective tool for accelerating an internal promotion timeline. Here's how to use it strategically:

1

Get the written offer first

Never mention a competing interest until you have a signed offer letter with a specific number and start date. Verbal interest or 'we'd like to make you an offer' doesn't give you leverage.

2

Frame it as a retention conversation

Go to your manager with: 'I received an offer I wasn't expecting. Before I decide, I want to understand my path here — specifically around the promotion timeline and comp.' This is fact-based, not threatening.

3

Ask for specifics, not just intent

Push for a written promo commitment, a specific review cycle (not 'probably next year'), and whether a market adjustment is possible independent of the promo. Vague reassurances are not leverage.

4

Know your real walk-away number

Run this calculator before the conversation. Know exactly what the stay path is worth at different promo probabilities. If the counter doesn't change the probability or timeline, the walk-away math stays the same.

Counter-offer recidivism rate

Research consistently shows that 50–80% of employees who accept a counter-offer leave within 12 months anyway — either because the underlying issues (comp ceiling, promotion path, growth opportunity) weren't addressed, or because management trust was eroded. Use the counter as data to recalibrate the probability in this calculator, not as a substitute for the original analysis.

Frequently asked questions

Compare your expected comp if you stay (current salary until promotion, then new level pay + equity refresh) against an external offer you could take today. If the 12-month expected income from staying exceeds switching by more than your risk tolerance for the promotion not happening, waiting pays off. Rule of thumb: if the switch offer is 20%+ higher and your promo is more than 12 months away with under 60% probability, switching usually wins financially. Use the 12-month verdict in this calculator to see your exact numbers.

At large tech companies, promotions typically carry a 10–20% base salary increase depending on level: L3→L4 averages 18–22%, L4→L5 averages 12–18%, L5→L6 averages 10–15%, and L6→L7 averages 8–12%. But base is only part of the picture — the new equity grant (typically 4-year vesting, 25% per year) and a higher bonus target percentage often add more total comp than the base raise itself. An L4→L5 promotion at a major tech company can add $60K–$120K in year-one total comp once the first equity tranche and bonus bump are included.

A 10% base raise on promotion is on the lower end for junior-to-mid transitions, but reasonable for senior-level promotions (L5→L6, L6→L7) where the real value comes from the equity grant increase. If your promotion comes with a large new RSU grant, a 10% base raise can still represent a 25–40% total comp increase in the promo year alone. Compare the full package — base, bonus target, new grant — not just the base increase percentage.

6–12 months is a reasonable waiting period when your manager has explicitly committed with a specific timeline. Beyond 18 months of waiting without a written commitment, the financial case to stay weakens significantly — you're deferring market-rate income for an increasingly uncertain outcome. Strong signals worth waiting for: formal promo case written, skip-level support confirmed, and you're already in the promotion cycle. Weak signals that suggest leaving: vague 'maybe next cycle' feedback, promotion slipped once already, or a new manager who doesn't yet know your work.

Equity has three layers to consider: (1) unvested RSUs at your current company you'd forfeit, (2) a new promo grant that only starts vesting after promotion, and (3) the new employer's grant which has a standard 1-year cliff before any vest. For switching to win on equity alone, the new employer's Year-1 vest must exceed your forfeited unvested RSUs plus the promo grant's Year-1 tranche. Enter all three values in the Equity fields and the timeline will show you the break-even.

Annual equity refresh grants are new RSU awards given each year after your original grant, primarily as a retention tool. At L5+ at large tech companies, refreshes typically run $20K–$80K per year. Unlike the original grant, refreshes vest starting the year awarded. A 5-year stay with $40K/yr refresh adds $200K of additional equity income on top of the original grant — making the long-run case for staying far stronger than the year-1 comparison suggests. Enter your expected annual refresh in the 'Annual refresh' field under the Promotion tab.

Yes. We use federal brackets, state income tax, and FICA/SDI (where applicable) for your filing status and chosen state — the same engine as our main paycheck tax calculator. RSU vests and bonuses are taxed as ordinary income in the year received. All results show after-tax take-home and estimated effective tax rate, not gross-only figures. Use the Tax Impact tab to see how your bracket shifts at the promoted level.

Career ladder levels (L1–L8 for individual contributors, M3–M7 for management) are industry-standard compensation bands used at most large tech companies. Google, Meta, Amazon, and Microsoft all use similar frameworks with different naming conventions — E4/E5, SDE I/II/III, IC3/IC4, etc. Selecting your level in this calculator auto-suggests typical promoted comp for that transition. You can customize every field to match your company's specific offer or comp letter.

Reliable signals of high probability (70%+): your manager has committed with a specific review cycle, you're formally in the promo process, you've received positive mid-year or quarterly signals, and your skip-level manager supports the case. Lower probability signals (under 50%): feedback is vague ('keep doing great work'), the promotion has already slipped one cycle, no written promo case exists yet, or you have a new manager still learning your work. Research suggests most employees overestimate their promo probability by 15–20% — calibrate conservatively.

Sign-on bonuses are designed to offset what you give up by leaving — typically unvested RSUs, a missed bonus cycle, or a delayed raise. A $30K–$80K sign-on often does not fully offset a combination of forfeited unvested equity and the upcoming promo grant. Model it carefully: the calculator includes sign-on as year-1 only income (because it is), so the year-2 and year-3 comparison often tells the truer story. If your forfeited unvested equity is under $50K and the sign-on is large, switching can win; if you have $150K+ unvested, most sign-ons don't compensate.

The Pay Raise Calculator shows your new paycheck gross after a simple percentage raise — ideal for a quick number. Promotion Impact compares two complete 1–5 year career paths: staying for a promotion vs switching now. It models promotion timing and probability, the full equity picture (refresh, promo grant, unvested), sign-on bonuses, multi-year compounding, and tax-aware after-tax income. You see the total financial impact of each path, not just the gross headline.

Some companies promote without a new equity grant — sometimes called 'band compression' — especially at lower levels or during budget freezes. Set 'New grant (4-yr total)' to $0 in the Promotion tab. The calculator will still model the base and bonus increase accurately. Note that promotions without equity grants are typically worth less than they appear: the base raise alone rarely beats a properly structured external offer at the same level.

Want to compare two full job offers side by side?

Offer Comparison models salary, equity, 401k, PTO, health costs, and state tax — all in one view.