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How to Know If Your Salary Expectations Are Realistic
When you sit down to write a cover letter or prepare for an interview, one of the toughest questions you’ll face is: "What salary are you looking for?" Knowing how to know if your salary expectations are realistic can mean the difference between landing the job and walking away disappointed. In this guide we break down the research process, provide a step‑by‑step checklist, and show you how to leverage AI tools from Resumly to make data‑driven decisions.
1. Understand What “Realistic” Means
Salary expectation is the compensation range you believe you deserve based on your skills, experience, and market conditions. A realistic expectation aligns with what employers are actually paying for similar roles in your geographic area and industry. If your target is far above the market median, you risk being filtered out by applicant tracking systems (ATS) or losing negotiating power.
Key takeaway: Realistic expectations are grounded in verifiable market data, not wishful thinking.
2. Gather Reliable Market Data
2.1 Trusted Sources
| Source | What It Offers | Typical Use |
|---|---|---|
| U.S. Bureau of Labor Statistics (BLS) | National and regional occupational wage data | Baseline industry averages |
| Glassdoor | Employee‑reported salaries, bonuses, and equity | Company‑specific insights |
| PayScale | Real‑time compensation trends by skill and experience | Fine‑tuned benchmarking |
| Resumly Salary Guide | Curated AI‑enhanced salary ranges for 500+ roles | Quick, searchable reference |
Visit the Resumly Salary Guide for an AI‑curated snapshot of current compensation trends across tech, finance, healthcare, and more.
2.2 How to Extract the Data
- Search by job title (e.g., Senior Product Manager).
- Filter by location (city, state, or remote).
- Adjust for experience level (entry, mid, senior).
- Note the median, 25th, and 75th percentiles – these give you a realistic range.
Stat: According to a 2024 Glassdoor analysis, 68% of job seekers who quoted a salary within the 25th‑75th percentile range received interview callbacks, compared to only 32% for out‑of‑range figures.
3. Step‑by‑Step Checklist to Validate Your Numbers
| ✅ Step | Description |
|---|---|
| 1. Define the role | Write the exact title, seniority, and key responsibilities. |
| 2. Identify the location | Include city, state, and whether the role is remote. |
| 3. Pull market data | Use at least two sources (e.g., BLS + Resumly Salary Guide). |
| 4. Adjust for experience | Add or subtract 5‑10% per year above or below the median experience level. |
| 5. Factor in company size | Start‑ups often pay less base salary but more equity; large firms may offer higher cash. |
| 6. Consider total compensation | Include bonuses, stock, health benefits, and retirement matches. |
| 7. Set a target range | Choose a lower bound you’d accept and an aspirational upper bound (usually the 75th percentile). |
| 8. Test the range | Run it through an ATS simulator or ask a mentor for feedback. |
Mini‑conclusion: Following this checklist gives you a data‑backed salary range, ensuring your expectations are realistic and interview‑ready.
4. Use AI‑Powered Tools to Benchmark
Resumly offers several free tools that can speed up your research:
- AI Career Clock – instantly visualizes where your current salary sits relative to industry benchmarks.
- Job‑Search Keywords Tool – reveals high‑impact keywords that often correlate with higher pay.
- Skills Gap Analyzer – identifies high‑value skills you may need to command a higher salary.
By feeding your current resume into the AI Resume Builder, you receive a salary‑fit score that suggests whether your stated expectations align with the market.
Pro tip: Combine the AI Career Clock’s visual data with the checklist above for a double‑check before you answer the salary question.
5. Factor in Experience, Location, and Industry
5.1 Experience Level
| Experience | Typical Adjustment |
|---|---|
| Entry (0‑2 yrs) | -5% to -10% below median |
| Mid (3‑7 yrs) | Around median |
| Senior (8+ yrs) | +5% to +15% above median |
5.2 Geographic Premiums
- San Francisco Bay Area: +20% to +30% over national median.
- Austin, TX: +10% to +15%.
- Remote (US): Usually aligns with national median, but can vary by company policy.
5.3 Industry Variations
| Industry | Median Base Salary (2024) |
|---|---|
| Software Engineering | $115,000 |
| Data Science | $120,000 |
| Finance (Investment Banking) | $130,000 |
| Healthcare (Nursing) | $78,000 |
Example scenario: Jane, a mid‑level data scientist in Austin, sees a median of $120k. She has 5 years of experience (+0% adjustment) and a certification in machine learning (+5%). Her realistic range: $114k – $138k (including a 10% bonus).
6. Do’s and Don’ts When Setting Salary Expectations
Do’s
- Do research at least three sources before finalizing a number.
- Do factor in total compensation (bonuses, equity, benefits).
- Do prepare a justification (e.g., “My five years of cloud‑migration experience drives a $15k premium”).
- Do stay flexible – be ready to negotiate other perks if base salary is fixed.
Don’ts
- Don’t quote a single figure without a range; it limits negotiation.
- Don’t rely solely on anecdotal advice from friends in unrelated fields.
- Don’t ignore cost‑of‑living differences when applying to remote roles.
- Don’t forget to update your expectations after gaining new certifications or skills.
7. Communicating Your Expectation in Interviews
- Wait for the employer to ask – if possible, let them set the range first.
- State a range, not a single number – e.g., “I’m looking for a total compensation package between $110k and $130k.”
- Back it up with data – mention the Resumly Salary Guide or recent market reports.
- Show flexibility – add “I’m open to discussing how other benefits fit into the overall package.”
- Practice with Resumly’s Interview Practice tool – simulate salary‑negotiation scenarios to build confidence.
8. Frequently Asked Questions
Q1: How far above the median can I safely ask for?
Generally, staying within the 75th percentile is considered safe. Anything above that should be justified by rare expertise or high‑impact achievements.
Q2: Should I adjust my expectations for a start‑up vs. a Fortune 500 company?
Yes. Start‑ups often compensate with equity; a lower cash base can be realistic if the equity package is generous.
Q3: What if the job posting already lists a salary range?
Use that range as a baseline. If you’re at the higher end of the required experience, aim for the top of the posted range.
Q4: How often should I revisit my salary expectations?
At least once a year, or after major milestones such as certifications, promotions, or relocation.
Q5: Can Resumly help me negotiate?
Absolutely. The AI Cover Letter feature can craft persuasive language that highlights your value, while the Interview Practice module lets you rehearse salary‑negotiation dialogues.
Q6: Is it okay to ask for a higher salary than I’m currently earning?
Yes, as long as you can substantiate the increase with market data and demonstrated skills.
Q7: How do bonuses and equity factor into “realistic” expectations?
Treat them as part of total compensation. For example, a $100k base plus a 10% annual bonus and 0.5% equity can be more attractive than a $115k base with no extras.
Conclusion
Knowing how to know if your salary expectations are realistic is a blend of diligent research, strategic adjustments, and clear communication. By following the checklist, leveraging Resumly’s AI tools, and staying informed about industry trends, you can set a compensation target that reflects your true market value and positions you for successful negotiations.
Ready to put your new salary strategy to the test? Try Resumly’s AI Resume Builder to craft a resume that showcases the high‑value skills that justify your range, and explore the Career Guide for more negotiation tips. Your next offer could be just a realistic expectation away!
