#tech-employee

Most sabbatical calculators show cash drawdown and stop. The honest math is 15× higher because foregone earnings compound to retirement. We modeled four common scenarios — three are cheaper than you think; one creates a NET positive lifetime impact.

Companies offer 10-25% pay cuts on relocation, but break-even on a typical SF→Austin move is closer to 35-40%. The gap between 'company offer' and 'true break-even' is your savings rate boost. Math, scenarios, and the negotiation lever most engineers miss.

We ran the cost-of-living math for the typical SF tech worker considering Austin. The savings rate jumps from 25% to 38%. The 10-year wealth gap is $510K. The honesty correction: real moves usually capture 70-80% of theoretical savings, not 100%.

Marcus exercised 12,000 ISOs at $7 strike when FMV was $42. The 2022 IPO peaked, then crashed 80% by tax day. He owed $80K of AMT on a position now worth less than the strike. Here's the exercise math, the exit options, and what the calculator should have shown before he wired.

Recruiters quote total comp as if year 1 looks like year 4. It doesn't. The 12-month equity cliff at the new job means a +35% offer becomes +12% in year 1 cash terms — and the 5-year EV depends on whether you survive the gap.