Work & Career

Should I negotiate my salary?

Calculate how much money you're leaving on the table by not negotiating, and see the lifetime impact of a higher starting salary.

By ShouldICalc Team

Updated January 2025 · See our methodology

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Annual Savings

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5-Year Savings

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Break Even

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Trade-offs to Consider

Every decision has pros and cons. Here's what to weigh:

Money

A successful negotiation of 5-10% higher salary compounds over your entire career. A $5,000 increase today could mean $100,000+ over 20 years.
Time

Negotiation takes 1-2 conversations. The hourly rate for this 'work' can exceed $1,000/hour when you calculate lifetime impact.
Quality

Negotiating signals confidence and professionalism. Employers expect it and often respect candidates who negotiate appropriately.
Convenience

Uncomfortable? Yes, for 30 minutes. But that discomfort is worth potentially hundreds of thousands of dollars over your career.

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Frequently Asked Questions

What percentage should I ask for in a salary negotiation?

Research shows asking for 10-20% above the initial offer is reasonable for most roles. The sweet spot is typically 10-15%. Going higher requires strong justification (competing offers, unique skills). Going lower leaves money on the table. Companies typically have 5-15% flexibility built into offers.

Can negotiating cost me the job offer?

Extremely rare. Studies show fewer than 1% of offers are rescinded due to negotiation. Employers expect negotiation—HR budgets for it. The risk of losing an offer is vastly overestimated compared to the near-certain cost of not negotiating. Professional negotiation is seen as a positive signal.

How much do people leave on the table by not negotiating?

Studies show 70% of employers expect negotiation but only 39% of candidates negotiate. Those who don't negotiate leave an average of $5,000-7,500 on the table per job. Over a 40-year career with 5-10 job changes, that's $50,000-150,000+ in lost earnings, not counting compounding.

Should I negotiate salary for my first job?

Yes—your first salary sets the baseline for your entire career. Future raises and job offers are often based on current salary. A $3,000 negotiation win at 22 could be worth $100,000+ by retirement when you factor in compounding raises and job changes based on that higher baseline.

The True Cost of Not Negotiating Your Salary

Most people dramatically underestimate what they lose by accepting the first offer. Here’s the math that should make you uncomfortable—and then confident enough to negotiate.

The Lifetime Impact of One Negotiation

Scenario: $75,000 offer, negotiate to $82,500 (+10%)

Timeframe	Without Negotiation	With Negotiation	Difference
Year 1	$75,000	$82,500	$7,500
Year 5 (3% raises)	$84,559	$93,015	$8,456
Year 10	$98,061	$107,867	$9,806
Year 20	$131,772	$144,949	$13,177

Cumulative earnings difference:

After 5 years: $40,913
After 10 years: $89,641
After 20 years: $211,376

One 30-minute conversation. $200,000+ lifetime impact.

The Compounding Effect Explained

Your salary doesn’t just affect this year—it compounds:

Annual raises are percentages - 3% of $82,500 > 3% of $75,000
Future job offers reference current salary - Higher baseline = higher offers
Retirement contributions scale - 6% match on higher salary = more free money
Bonus percentages - 10% bonus on $82,500 = $825 more per year

The “just $5,000” fallacy:

$5,000/year × 20 years = $100,000
With 3% annual raises compounding = $138,000
With investment growth on the difference = $180,000+

That “small” difference is a house down payment.

Break-Even Analysis: Time Investment vs Return

Time spent negotiating: 2-5 hours total

Research: 1-2 hours
Preparing your case: 30-60 minutes
Actual negotiation: 15-30 minutes
Follow-up: 15-30 minutes

Return on that time (if you get $5,000 more):

Year 1 hourly rate: $1,000-2,500/hour
Lifetime hourly rate: $40,000-100,000/hour

There is no higher-ROI activity in your career than salary negotiation.

Why Most People Don’t Negotiate (And Why They’re Wrong)

Fear #1: “They’ll rescind the offer”

Reality: Less than 1% of offers are rescinded due to negotiation
Employers budget for negotiation—they expect it
Professional negotiation is seen as a positive trait

Fear #2: “I don’t want to seem greedy”

Reality: Employers respect candidates who know their worth
Not negotiating can signal lack of confidence
You’re not asking for charity—you’re establishing fair value

Fear #3: “The offer is already good”

Reality: “Good” offers still have room
Companies rarely open with their best number
Even satisfied candidates negotiate 5-10% more

Fear #4: “I’m not good at negotiating”

Reality: Salary negotiation is a learnable skill
Scripts and templates exist
One awkward conversation = $100,000+ over time

The Numbers: Who Negotiates and Who Doesn’t

Research findings:

70% of employers expect candidates to negotiate
Only 39% of candidates actually negotiate
Men negotiate 4x more often than women
Those who negotiate earn $5,000-7,500 more on average
85% of those who negotiate get something (not always full ask)

The negotiation gap costs workers billions annually.

What Employers Actually Think

From HR and hiring managers:

Budget typically includes 5-15% flexibility
First offer is rarely the maximum
Negotiation is a normal part of hiring
Candidates who don’t negotiate may be seen as lacking confidence
A reasonable counter-offer doesn’t damage your standing

What crosses the line:

Asking for 50%+ more without justification
Being aggressive or demanding
Negotiating after accepting
Excessive back-and-forth (more than 2 rounds)

How to Calculate Your Ask

Research-based approach:

Find market rate (Glassdoor, Levels.fyi, Payscale)
- Your role + location + experience level
- Identify 25th, 50th, 75th percentile
Assess your position
- Competing offers? → Ask for more
- Unique skills? → Ask for more
- Below market rate offer? → Definitely ask for more
- Above market but want more? → Still ask (professionally)
Calculate your range
- Minimum acceptable (your “walk away” number)
- Target (what you’d be happy with)
- Stretch (best realistic case)

Rule of thumb: Ask for 10-15% above initial offer, justify with research.

The Negotiation Script

When they make the offer:

“Thank you for the offer—I’m excited about the role. I’ve done research on market rates for this position, and based on my [specific experience/skills], I was hoping we could discuss a base salary of $X. Is there flexibility there?”

If they push back:

“I understand there may be constraints. Is there flexibility in other areas—signing bonus, equity, vacation time, or a performance review timeline?”

Key phrases:

“Based on my research…”
“Given my experience in…”
“Is there flexibility…”
“What would it take to get to…”

What If Salary Is Fixed?

Negotiate other compensation:

Signing bonus (often easier to approve than salary)
Equity/stock options
Performance bonus structure
Earlier performance review (with raise potential)
Additional vacation days
Remote work flexibility
Professional development budget
Title upgrade (affects future offers)

Monetary value of “non-salary” items:

$5,000 signing bonus = $5,000 (immediate)
5 extra vacation days = $1,500-3,000 value
Remote flexibility = $5,000-15,000 in commute/relocation savings

Industry-Specific Guidance

Tech/Software:

High flexibility (10-20% negotiation room common)
Equity negotiation often more impactful than salary
Competing offers are powerful leverage

Finance/Consulting:

Structured bands but still negotiable
Bonus percentage may have flexibility
Signing bonuses common

Corporate/Fortune 500:

Formal salary bands exist
Less flexibility but still 5-10% room
Title negotiation can affect band placement

Startups:

Cash may be tight, equity flexible
Title negotiation easier
Future raise timeline negotiable

Nonprofit/Government:

Less flexibility in salary
Negotiate vacation, flexibility, professional development
Title and scope negotiable

The Compound Calculator

Your personalized math:

Starting salary: $___ Negotiated increase: % = $

Assuming 3% annual raises and 10-year horizon:

Without	With Negotiation	Cumulative Difference
Year 1	Year 1 + X%	X
Compounds…	Compounds faster…	Growing gap…

After 10 years: $____ more in cumulative earnings

Want to see your specific numbers? Adjust the sliders above.

The Bottom Line

Not negotiating is the most expensive 30 minutes of your career.

Average negotiation win: $5,000-10,000
Time investment: 2-5 hours
Effective hourly rate: $1,000-5,000/hour
Lifetime impact: $100,000-500,000+

The discomfort of asking is temporary. The cost of not asking is permanent.

Even if you get nothing, you’ve lost nothing. But if you don’t ask, you’ve definitely lost something.

About This Calculator

Salary data from Glassdoor, Bureau of Labor Statistics, and compensation surveys. Negotiation statistics from Harvard Business Review, NBER research, and hiring manager surveys. Compound calculations assume 3% annual raises; actual results vary by industry and performance. Last updated January 2025.