How much to ask for in a salary negotiation — the exact formula
The biggest mistake in salary negotiation isn't the email — it's the number. Ask too low and you leave money on the table. Ask too high and you look uninformed. Here's the exact formula for picking your counter-offer number, with worked examples for three scenarios.
The 3-step formula
Step 1 — Find your market band
Pull salary data for your exact role, city, and experience level from at least two of these sources:
- Levels.fyi — best for tech, especially engineering and PM roles
- Glassdoor — broad coverage across industries, filter by company size
- Payscale — general coverage, good for non-tech roles
- Robert Half Salary Guide — strong for finance, accounting, operations
- Built In — tech startups, especially in specific US metros
- LinkedIn Salary Insights — available with Premium; tends to skew low
Write down the low, median, and high for your band. You now have your market range.
Step 2 — Find your anchor
Your "anchor" is the number that grounds your ask. Use these in order of preference:
- Competing written offer (strongest)
- Verbal or informal competing interest
- Your current total comp (if relevant)
- Market median from Step 1
Step 3 — Apply the 10–20% rule
Calculate your counter by starting from the higher of:
- The offer + 10–20%, OR
- The market median + 5–15%
Whichever is higher — and sits within the market band (i.e., between median and high) — is your ask. Then round to a clean number.
Worked examples
Example 1 — Standard counter (single offer, above-median market)
- Initial offer: $110,000
- Market band: $108K (low) / $118K (median) / $130K (high)
- Offer + 15% = $126,500
- Market median + 10% = $129,800
- Higher: $129,800 — rounded and within band: $128,000
Expected landing zone: $118–$122K (recruiter will likely split the difference).
Example 2 — Competing offer anchor
- Primary offer: $125,000
- Competing offer: $135,000 (less preferred company)
- Market band: $120K / $135K / $150K
- Competing offer + a preference premium (10%) = $148,500
- Ask: $148,000
Why the preference premium? Because if you say "I'll accept you over the competing offer at a meaningful premium," you're giving the recruiter a clear yes path.
Example 3 — Current role anchor (raise, not counter-offer)
- Current base: $82,000
- Market band for current role: $90K / $100K / $115K
- You haven't had a raise in 14 months; scope has grown
- Market median + 5% = $105,000
- Ask: $105,000 — but expect to land near $95–$98K
What makes your ask "reasonable" vs "too high"
A "reasonable" ask is one the recruiter can justify to the hiring manager without extra approvals. Three tests:
- Market test: Your ask should sit within the 50th–80th percentile of market data. Above the 90th and you're signaling "I haven't done the research."
- Delta test: 10–20% above offer is reasonable. 30%+ above offer is a red flag unless you have a competing offer at that level.
- Specificity test: Any ask you can't justify in one sentence is too high. Practice: "I'm asking for $X because market data shows $Y and I bring Z."
Common pricing mistakes
- Asking in a range. "I'd like $125K–$135K" is a gift to the recruiter — they'll pick $125K. Always name a specific number.
- Forgetting total comp. Base is one lever. Signing bonus, equity, PTO, and title are others. If base is capped, negotiate the rest.
- Anchoring to your current salary. If your current salary is below market, your counter should ignore it. You're asking to be paid for the new role, not a percentage-bump from old comp.
- Not accounting for location premiums. A NYC role and a remote role for the same company pay differently. Filter market data by location.
Total comp vs base only
Always negotiate on the metric that matters to you. If the company evaluates on base (common in finance, healthcare), push base. If they evaluate on total comp (common in tech), think in TC = base + bonus + equity/year.
A $130K base + $15K bonus + $40K/year equity = $185K TC. When you say "ask for more," specify which lever.
Non-salary asks that are almost free wins
If base is locked, these are almost always flexible:
- Signing bonus: $5K–$25K is common; a first-time ask
- Equity refresh: Especially if competing offer has more equity
- Extra PTO: 5 days is usually a free yes
- Start date: 2–4 extra weeks of runway
- Remote flexibility: 1–2 additional WFH days per week
- Title bump: Especially pre-IPO, where title matters for future comp
When to ask for the high end vs mid of band
- High end (80th–90th percentile): You have a competing offer, you're a top-3 candidate for a hard-to-fill role, your scope in-role will be bigger than the posting
- Mid-high (60th–75th): Standard scenario. You're qualified, no competing offer, offer is at or slightly below market
- Mid (50th–60th): You're early-career or switching into a new function. Still negotiate, just less aggressively
Before you send — quick check
- Do you know your walk-away number?
- Do you have a Levels.fyi or market band to anchor to?
- Do you have a 3-business-day deadline written in?
If you answered "not sure" to any of these, the Counter-Offer Kit walks you through all three.