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Relocation Package Value Calculator

Work out relocation package value instantly with clear inputs, formula shown and shareable results.

About Relocation Package Value Calculator

A relocation package has two very different figures: what it costs the employer and what you actually receive. Where benefits are taxable, a gross-up is needed so that the net amount in your hands equals the intended benefit — and grossing up correctly means dividing by (1 - tax rate), not multiplying.

Formulas

Taxable benefit

Taxable = Moving cost + Temporary housing cost

Gross-up

Gross-up = Taxable x Tax rate / (1 - Tax rate)

Worked example

With the default values below, Relocation Package Value Calculator returns Total cost of the package to the employer of $635,714.29. Change any input above and every figure here is recalculated in your browser.

Inputs used

Moving and shipping cost
250,000
Months of temporary housing
3
Monthly temporary housing cost
65,000
Tax gross-up on taxable elements
30

Results

Total cost of the package to the employer
$635,714.29
Net benefit you actually receive
$445,000.00
Temporary housing component
$195,000.00
Tax gross-up
$190,714.29

Step by step

  1. 1Values used
  2. 2Taxable benefit
  3. 3Gross-up
  4. 4Total cost of the package to the employer= 635,714.29
  5. 5Net benefit you actually receive= 445,000.00
  6. 6Temporary housing component= 195,000.00
  7. 7Tax gross-up= 190,714.29

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why divide by (1 - tax rate)?

Because the gross-up is itself taxable. Multiplying by the rate leaves you short; dividing by one minus the rate makes you whole.

Is a lump sum better than reimbursement?

A lump sum is simpler and you keep any savings, but it is usually fully taxable and rarely covers an unexpectedly expensive move.

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