The Average Salary Jump When Changing Jobs

Typical salary increase by industry — job change vs. internal promotion

IndustryTypical Salary Increase (Job Change)Internal Raise (Same Company)
Technology / Software15–25%3–5%
Finance / Banking12–20%3–5%
Healthcare10–18%2–4%
Marketing / Communications10–15%2–3%
Education5–10%2–3%
Manufacturing8–12%2–4%
Legal15–25%3–5%

The Non-Salary Job Change Costs

Job changes have real financial costs beyond just salary: 401k vesting restart (if cliff-vested), loss of accumulated PTO, potential COBRA healthcare gap, relocation costs, and the risk premium of leaving a known culture for an unknown one. Calculate these against the salary increase.

⚠️The Vesting Cliff Trap

If your current employer has a 3-year cliff vesting schedule for equity or employer 401k match, leaving before year 3 forfeits unvested compensation. A $5,000/year employer match fully vesting at year 3 = $15,000 in foregone compensation if you leave at month 30. Factor unvested compensation into any job change calculation.

Evaluating a Job Offer vs. Current Role

  1. Calculate total compensation for both: base + match + insurance value + remote flexibility + equity
  2. Subtract transition costs: unvested 401k match, unvested equity, relocation, PTO lost
  3. Add any one-time benefits: signing bonus, relocation assistance, stock grants
  4. Apply a risk premium for the uncertainty of a new role/company
  5. If net advantage ≥ 15% for same or better role: seriously consider the change

Compare Your Current and New Offer

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