What is the best way to estimate take home pay for a partner? Apologies if this is a duplicative question, but I did search. It seems very difficult to determine when taking into account the loan repayment of the buy in and other expenses (i.e., health insurance). I am comparing equity partnerships vs. MD positions in the short term.

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Absolutely no way to give meaningful input on this one without specifics, I’m afraid. Even just across the different B4 firms there are wildly different monthly cashflow setups for equity partner. Adding in MD where you’d be a W2 employee muddies it even further. And then you have the firms where even equity partners are on W2, those work differently as well. You really need offers in hand to compare directly.

Having said all that, at a certain point hopefully the only number that really matters is total cash comp — with enough coming in you can make the month to month stuff work.

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Thank you for this comprehensive answer. It’s expected but appreciated.

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Join the group that does partner returns.

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Compare cash flow.

Ask for cash flow estimates from those positions and how partnership taxes are handled for LLPs. On equity, almost all give you a loan that’s minimal interest so id ask how they handle it, but if that’s the answer, you don’t need to worry about it. That should I give you a good idea.

Insurance won’t vary that much so I would keep it out.

W2 you can easily calculate.

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