How to Answer What Is Your Desired Salary?

Is it time to negotiate a new salary? Here's how to calculate your desired salary.

By Keertana Anandraj
November 19, 2023

Photo by Charles Deluvio on Unsplash

"What is your desired salary for this position?"

While it may be a no-brainer that one’s desired salary is $1,000,000 minimum, the reality of answering the question, “What is your desired salary?” is nuanced, awkward, and (let's face it) risky!

Various pieces of advice recommend that you avoid directly answering this question altogether, especially if you feel as if the position may be a good fit. Instead, respond that you would like to know how much is budgeted for the role—if a potential employer can disclose—and that you feel confident that you and the company can find a mutually beneficial solution once you’ve been presented with an offer letter.

But the fact of the matter remains…what is your desired salary?

Even if you’re not ready to disclose numbers to a company during the hiring process and before receiving a formal offer, you should still calculate a few desired salary numbers for yourself, depending on the job at hand.

Determining your desired salary and salary range
What to put for your desired salary on a job application
How to answer desired salary questions in a job interview + scripts
Common salary mistakes
Sample email templates to discuss desired salary and salary expectations

It's also important to do this salary prep work because the desired salary question may come up in your job application process as well as your job interview process. When Career Contessa founder, Lauren McGoodwin, was a recruiter, she said that asking about salary expectations was always included in her first phone interview.

But this salary discussion can also happen as early as the job application process. Online application systems, often called applicant tracking systems, might ask you to fill out your desired salary when you're applying for the job. This means before you've talked to a recruiter or learned anything about the role.

And if you put too high of a number, you might remove yourself from the running as a qualified applicant, but if you put too low of a number it could be used against you later on. Ugh, the job search process can feel like a mind game!

What Is Desired Salary?

Your desired salary is simply the total compensation you'd like to receive in a new job. This should be a realistic number but it's also totally fine for it to be a significant jump from your current salary depending on what you're applying for. I just had a friend switch from making $80,000 a year to $120,000 a year for a similar job. Proof that your salary can be realistic and a big jump.

The tricky part about this question and concept, in general, is that you're usually asked this question before you've had the opportunity to learn a lot about the job and company.

If you give a number too low, you may lose the opportunity to earn market value, but if you put a number way too high, you may lose the opportunity to continue the interview process. Let's talk further about your strategy for answering this.

How to Determine Your Desired Salary + Salary Range

You can arrive at this number through research. Look up the salaries for similar positions and titles, and don’t forget to factor in the cost of living, too, since a salary in NYC looks very different from one in suburban Ohio.

Step 1: Research + Self-Evaluation

You can research your salary with online tools like Payscale, Salary.com, Glassdoor, and our very own Salary Project. Try to find similar roles in similar industries to create a salary range. Ideally, you want to understand the market value for your skills in your industry and location.

Another thing that can impact your salary is the company size and market cap. A large successful company will usually pay a higher salary than an early-stage startup.

You also need to look inward and consider what skills you bring to a job. Think back on your past accomplishments, and consider your strengths and what you can bring to an organization that is valuable. How can you help solve their problems?

Step 2: Account For Your Skill Level

When you are conducting your self-evaluation, account for your skill level and experience. Having more years of experience will often mean you're able to be paid in the higher range of a salary band. Experience doesn't have to mean formal education either. It often refers more to hands-on experience vs. training like online courses, higher education, etc.

And remember that your skill level isn’t always equivalent to the number of years you've been working in an industry. Sometimes a recent grad might have a higher level of skill than somebody who’s already been working in the field for a while.

For example with social media marketing. If the student has a TikTok channel with lots of followers then they might be more skilled in TikTok than someone on the company's current marketing team who is just starting to test out TikTok as a marketing tool.

If your skillset gives you a competitive edge, factor that into your desired salary. Also, be honest with yourself if your skill level isn't as valuable, but then consider ways you can advance your skills!

Step 3: Think About Your Cost of Living

The question to ask yourself is how much money do you need to bring home each month to cover your cost of living expenses? These are usually your fixed expenses like rent/mortgage, insurance, car payments, utilities, etc., and your variable expenses like food, gas, childcare, entertainment, gym, etc.

Some other things that might impact your expenses are a commute, needing to relocate for a job, and updating your work wardrobe.

You should also take into account any financial goals you have like saving to buy a house, paying off school debt, or putting money into a retirement account.

Create a budget to help you better understand what your true cost of living is and use that information to help you understand what your desired salary is.

Step 4. Talk to People in Similar Roles

Next, talk to people. One of the best ways to learn about salaries is by talking to people in the roles that you are applying for. Since asking someone about money is pretty personal, start with your network before you ask them for referrals. Here's an example of what you might say:

"Hi, X! I'm applying for a new job which will put me in [POSITION TITLE] similar to yours. In preparing for my job applications and interviews, I wanted to ask what salary you earned when you first started in this role. I want to make sure I am matching my experience with the correct rate. Any insight is greatly appreciated, and as I research this more, I'd be happy to share what I learn with you!"

Another great way to collect salary data is by talking to recruiters. Every time you have an interview, you're building a relationship with a recruiter and/or hiring manager. You can also try to build a connection with a recruiter via LinkedIn or ask your network for an introduction. The goal here is to see if they can share the average salaries they see in their work for the type of position you're looking for.

Salary transparency is much more widely accepted today and the worst thing someone can tell you is "no!"

Lastly, salary transparency laws are now active in many states. This means you can also research similar job titles at similar companies and see if you can find the average salary range that's listed in the job description.

Step 5. Consider Your Current Salary

Another way that you can come up with your desired salary is by simply giving yourself a raise. There are a few ways you can come up with this number— and we love this salary equation from a manager—but let's also discuss the "give yourself a raise" method.

Do the research based on your current job title. Next, take your current salary and determine what that number would be today. The reason we do that is to account for your salary not keeping pace with inflation and current trends. If you're struggling to figure this out, the average cost of living raise is usually 2-3% annually so take that number and add it to the number of years you've held your current position.

Once you have the number that an employer would pay for your current role today, give yourself a 10-15% raise. 10% is the higher end of the bonus or raise ranges, but you can use that number to come up with your new desired salary range for the future role you're applying to.

You can then compare that to your research from Steps 1 and 2. If you're making a big career move, this method might be lower, but if you're moving just one level up, a combination of these methods should give you a well-researched and accurate salary range to aim for.

Step 6: Understand What Benefits Are Being Offered

Benefits like health insurance, paid time off, paid family leave, childcare stipends, stock options, and 401(k) matching can make a big difference in your desired salary. These benefits offer a monetary value that is separate from your salary. Make sure to consider the entire compensation package vs. only focusing on the salary number.

Three Desired Salary Numbers to Prepare Before an Interview

If you went through a college application process, you might remember having a few options: your reaches, your "safety schools," and your "let's see how this goes" fits.

Whenever making a big life decision, it's good to chart a few potential paths—and be open to what happens next. Similarly, you can apply that to creating a few salary numbers to have on hand.

How to Calculate Your “Reach” Salary

This is the figure you should quote in a job interview, as this is the magical number that, barring any budget on the company’s end, you absolutely, 100% believe you deserve.

Most importantly, don’t sell yourself short—know your worth.

Base this on your experience and your education and come up with a number, or a range, that you would accept without hesitation since it’s a figure that meets all your needs and more.

For example, if your salary research from earlier determined a salary range of $100,000- $115,000 for your role, your "reach" salary that you share with the recruiter might be $120,000.

How to Work With the Salary Presented to You

When a recruiter or hiring manager asks for your desired salary, it's crucial to have a range. If you don't—or if you evade the question—you risk the very likely possibility of a low-ball range. Take the power from the beginning by having salary numbers ready.

If the company is forthright about its salary range, know that there is still room to negotiate, okay? Seriously!

If you're lucky, this number may be your “reach” salary, in which case it’s still important to negotiate and ask for even more. However, it's more likely that the presented number will fall below your “reach” salary.

If you've done your market research, you'll know immediately whether or not it meets industry standards and cost of living requirements.

Using the example above, you know that a salary range for the role you're interviewing for should be between $100,000 - $115,000, so if they offer you less than $100,000, you know it's not within market value. If they offer you $110,000, then it is less than your "reach" salary but within market value and something worth negotiating.

While you should absolutely make the case for your “reach” salary, know that the company may be fixed on this range and your “desired salary” may need to shift to accommodate (at least if you really want this specific position for other, non-salary related reasons).

How to Calculate a Salary + Benefits Combination

This final option considers the “perks” a company may offer beyond salary. If your “dream” job presents you with a range far below your “reach” salary and is unable to offer more, all is not lost. Even after negotiation, you can always still negotiate on benefits. Ask yourself:

What are the benefits you hope for in a new company you’re joining?
What are your minimum PTO requirements?
What about healthcare?
Does the company offer a retirement plan for employees? If so, can they raise their match offer in lieu of a larger salary?
Does the company offer a flexible schedule or hybrid work schedule that's important to you?

Also consider requesting a wellness stipend, generous paid time off, childcare stipend, professional development stipend, sick leave that’s separate from your PTO, etc. When it comes to benefits, there are so many areas to push and negotiate on, so consider that while this “desired salary” may be a lower figure, the benefits that are added on can help offset other costs that you may have had to take on, even with your “reach” salary.

Moreover, given that the majority of work environments have shifted to be virtual, consider pushing for a relocation bonus if that’s a requirement or a more flexible work schedule that allows you to remain where you are without commuting or relocating.

If a company really wants you, they absolutely have more leeway to offer a better benefits package than they may have with a fixed salary amount, so certainly consider presenting multiple options when negotiating.

What to Put for Your Desired Salary on a Job Application

Do you immediately tense up when you see an online job application ask you what your salary expectations are? Us too. While it can be valuable to list your salary range on the online job application, it isn't required. And before you say, "but it is required—the job application doesn't let you move forward in the process until it's filled out," don't worry. We have a hack.

First, remember that it's illegal in most states for employers to ask you about your salary history.

Employers ask this question for a few reasons. First, they want to see if your number is within their budget. If the employer budgeted $50,000 for the job and you're looking for $80,000, then you're probably too far apart to make it worth either party's time for an interview. And secondly, the recruiter is interested to know if you've done your research.

What you put here can impact your offer and interview, too. If you put a number too low and then try to negotiate for more, you're just adding extra work for yourself.

So, here's our hack when the job application asks for an exact number—write 000, 111, or even 555. If it makes you put something more specific do something so low that's obvious it's not your real answer like $1,000.

If you're able to write an answer, you might try the following:

Negotiable
Flexible
Looking to learn more
To be discussed later
Competitive
Will review the entire compensation package

Be prepared to talk about your salary expectations in the first interview. You might say something like this:

"Putting an exact salary number down on a job application without more information about the role, skills required, and the company wasn't something I was comfortable with until I learned more. Once I learn more about what you're looking for in this role, I'd be happy to share my salary range, but right now, my focus is on learning more. If it's helpful for you to share your budget for the role to make sure we're not wasting anyone's time first, I'm happy to discuss that!"

Overall, your goal is to not write in an exact number—even if you know your range—and instead focus on having a conversation with the recruiter or hiring manager to learn more.

How To Answer "What Is Your Desired Salary?" in Interviews + Example Answers

One of the first questions you can expect to get in a job interview (phone or in-person) is, "What's your desired salary?" As we mentioned earlier, the recruiter wants to make sure you two are within a similar range, so you're not wasting anyone's time. This means you have to answer with enough information to make them feel confident moving forward but recognize that these first few interviews are not the time to negotiate.

Here are a few ways you could answer this question:

Giving a Range

"Based on what I've learned about this role and the responsibilities, the market value for roles like this, and taking into account the cost of labor and cost of living, my salary expectations are looking at a range of $100,000 to $115,000 for a starting salary in addition to learning more about the total compensation package offered."

Pro Tip: Never say "I'm looking to make between $80,000- $100,000." This opens up the recruiter to ask you many questions about your research. Instead, use the advice above or say: "I'm currently interviewing for jobs that pay $80,000- $120,000." By mentioning you're currently interviewing it will justify your range quickly and send a message to the recruiter that you're in-demand!

Use Their Salary Range To Your Benefit

Many companies are now listing the salary range in job postings thanks to new salary transparency laws. If that's the case, you ask them what skills and experience separate the two ranges. Try, "What skills, qualities, and experiences separate a $80,000 candidate from a $110,000 candidate?" Then, you can use their exact language in the negotiation to justify your salary and provide data points.

Using Benchmark Data

"I've researched average salary information for this role at X, Y, Z and spoken to a handful of people working in similar roles and industries. My research benchmarks that roles like this are making between $120,000 and $140,000 annually. Additionally, when you factor in the cost of labor and cost of living growing 7% over the next 18 months, an appropriate starting salary range for this role is $130,000, which does not include my experience. I'm happy to discuss this in further detail once I learn about this specific role and company, but that's what my salary research is showing so far. Is that aligned with your research as well?"

Focus on Learning More

"Thanks for asking. I've done some preliminary salary research on similar roles in similar industries; however, at this time, I'd prefer to keep learning about the specifics of this role. Once I have a better idea, I'm sure we can determine fair compensation for what's required of the job."

Deterring Your Answer but Highlighting Your Experience

"I do have a salary range in mind that I've determined based on research and taking into account my 10+ years of PR experience. I believe my experience level, qualifications, and multiple PR awards add value to my candidacy. However, I'd like to wait to share my range until I learn more about the responsibilities and expectations of this role. I have no doubt if this is a fit that we can determine a fair salary number.

Tips For Discussing Your Desired Salary

Here are some tips to keep in mind when you talk salary with a future employer:

Be confident
Avoid giving an exact number too early. If you have to provide something, consider giving a salary range
Know what your must-have, nice-to-have, and deal-breaker salary numbers are ahead of any conversations
Do your salary prep work
Don't be afraid to counter a salary or ask additional questions before you discuss salary with an employer
Remember that your self-worth doesn't equal your net worth

Common Salary Mistakes

Here are some common salary mistakes to avoid:

Not spending the time doing the salary research, considering your expenses, and reflecting on your past accomplishments
Putting your desired salary on your resume and/or cover letter
Not having an answer to the salary question at all
Being too low with your number or range because it's your "dream job" or you're afraid to ask for more
Not taking into account your years of experience
Sharing your salary history
Not asking about the total compensation package including bonuses, stock, and employee benefits like health insurance
Giving too much personal information to the recruiter or hiring manager (i.e., they don't need to know how much your student loans are each month)
Not negotiating when you really want to
Not preparing the information to back up your salary negotiations
Making drastic changes in your desired salary numbers throughout the interview process

Sample Email Template to Discuss Desired Salary and Salary Expectations

What should you do if the interviewer asks you to share your desired salary information in an email instead? And why would they do this? Some interviewers might know that this is a question that a lot of job candidates would rather deflect and, therefore, they will ask the interviewee to email them instead.

It's just another way for companies to try to learn if you've done your research and what you're looking for before they continue the process. By asking you to email it to them, you can share specific links to your research.

One thing to note: An email is a paper trail, so you want to be extra careful not to back yourself into a corner by sharing too much too early. Here's an email template you might send:

Hi Sandy,

Thanks so much for meeting with me yesterday. I really enjoyed learning more about the team's objectives and how new software will influence the HR process and management. I'm excited to hear about the transition to Workday and how this new role will help roll this out to the company.

Regarding salary, I don't have a specific number in mind. However, I've considered my salary expectations, experience, skills, and I wanted to share those details below.

I've looked at average salary information across the United States from the Bureau of Labor Statistics, Payscale, and Salary.com [insert links if you want]. From that information, I can see that the benchmark job compensation for this is $150,000 to $180,000 per year range. Additionally, the job market demand is expected to grow 5% over the next few years, meaning more companies will be looking to hire HR Technology Partner roles.

Plus, I'm factoring in my past experience, skills, and future growth potential.

I appreciate that you offer year-end bonuses, stock options, and a variety of benefits that are important to me. With this in mind, I'd be looking at the $175,000 to $180,000 range as a starting salary and looking for total compensation in the $200,000 range. A minimum salary requirement for me would be $173,000, given my experience and salary research.

Let me know if you have any questions or if you feel like we're on the same page. I'm happy to have a discussion by phone or meet again in person.

Thanks so much,
Nicole

Salary Negotiation Is a Matter of Good Faith, Too

Ultimately, it pays to have a few “desired salary” numbers in your mind as you approach the final stages of a job interview process. Withholding an exact figure until the company has disclosed its budget will often work in your favor, particularly as certain companies attempt to weed out candidates with “reach” salaries they can’t meet even though benefits and other aspects of the full package are ultimately still important when making a decision.

What’s more, knowing a company’s range can help you to create the ideal “reach” salary and, again, an alternate backup plan considering a wider range of benefits. If the position really seems like a good fit, but the salary and benefits aren’t fully lining up for you, consider requesting a concrete plan for your growth at the company so you can reach the salary and benefits package you desire within a year or less.

There is always wiggle room when it comes to job offers, so don’t give up hope and know your worth!

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Keertana Anandraj

Born in India and raised predominantly in New Jersey, Keertana is a relatively recent college graduate who resides in San Francisco. A graduate of Wellesley College, with a double major in mathematics and economics, Keertana has long been an ardent feminist and passionate about women's inclusion in the workforce. This was only further solidified during her time in corporate America, when she began freelance writing for The Financial Diet. Keertana now works as a Financial Analyst for a female-run gender-lens impact investment firm in Oakland. In her spare time, she enjoys exploring new hiking trails in the Bay Area, experimenting with baked goods, creating off-the-beaten-path travel itineraries, and volunteering with social justice-oriented local organizations.