Most people prepare for a salary negotiation by picking a number that feels slightly uncomfortable and hoping for the best. The result is predictable: they anchor too low, the employer counters slightly higher, and both sides walk away with a deal that undervalues the employee. There's a better way.
Calculating your market value isn't about finding one "right" number. It's about building a range backed by multiple data sources, understanding what leverage you actually have, and knowing how to communicate your value in terms the employer cares about. Let's walk through the process.
Data Source 1: Salary Aggregators (The Broad View)
Start with the big platforms: Glassdoor, Levels.fyi (for tech), Payscale, and the Bureau of Labor Statistics Occupational Outlook Handbook. These give you a rough bracket. For a product manager in Chicago with 5 years of experience, you might see a range of $95,000 to $145,000. That's useful but too broad to negotiate with. The real work is narrowing it down.
Filter by: your specific city (not metro area), your years of experience (not title alone), company size (startups pay differently than Fortune 500s), and industry (tech pays more than non-profit for the same role). If you get fewer than 20 data points after filtering, your filters are too tight or your role is too niche. Loosen geography before loosening role specificity.
Data Source 2: Recruiter Conversations (The Market Check)
Talk to three to five recruiters who specialize in your field. Not to get a job, but to ask one question: "For someone with my background in this market, what salary range are you seeing for roles you're placing right now?" Recruiters see real offers, not self-reported Glassdoor data. Their numbers tend to be more current and more accurate. If your recruiter range is $110,000-$130,000 but Glassdoor says $95,000-$145,000, weight the recruiter data more heavily.
Data Source 3: Your Own Leverage Factors
Market data tells you what the average person with your profile earns. Your leverage tells you whether you should be above or below that average. Honestly assess: do you have a competing offer? (This is the single strongest leverage factor.) Does your current role involve a skill or domain knowledge that's genuinely hard to hire for? Are you walking away from unvested equity or a bonus that the new employer needs to compensate for? Did you save the company money or generate revenue you can quantify in your last role?
Each "yes" pushes you toward the upper end of your market range. Quantify everything you can: "I reduced AWS costs by $180,000 annually" is worth far more in a negotiation than "I'm good at cost optimization."
Key Takeaway
Your final number should be: Market average + leverage premium + competing offer premium − convenience discount (if you're asking for remote or other accommodations). Present the number as a natural conclusion from the data, not as a demand.
Beyond Salary: Total Compensation Modeling
Salary is only one component. Build a spreadsheet: base salary + target bonus × probability of payout + 401(k) match dollar value + equity value per year (use a conservative valuation for private companies) + value of PTO vs. industry standard + health insurance premium difference. A $120,000 offer with a 6% 401(k) match and fully covered health insurance can be worth more than a $135,000 offer with no match and a high-deductible plan. Run the numbers.
Once you have your market value range and your total compensation model, you can negotiate from a position of knowledge rather than hope. And that's the difference between a number you settle for and a number you earn.