What Are Your Compensation Expectations? How to Answer This Interview Question

Few interview questions create as much anxiety as “What are your compensation expectations?” This question feels like a trap—answer too high and price yourself out; answer too low and leave money on the table. The stakes feel immediate and concrete in ways that behavioral questions don’t. Money is involved, and you don’t want to make a costly mistake.

Understanding why employers ask this question, what they’re really trying to learn, and how to respond strategically helps you navigate this conversation confidently. The goal isn’t to avoid the question entirely—that often backfires—but to handle it in ways that demonstrate professionalism while protecting your negotiating position.

This guide walks you through proven approaches for discussing compensation expectations, from research and preparation through various response strategies for different situations. By the time you face this question, you’ll have a plan that serves your interests while satisfying interviewers’ legitimate need for information.

Why Employers Ask About Compensation Expectations

Understanding the employer’s perspective helps you craft responses that address their needs while protecting yours.

Budget alignment is the primary reason employers ask. Every position has a salary range, and employers want to ensure candidates’ expectations fall within that range before investing heavily in the interview process. Interviewing is expensive and time-consuming; screening out candidates with wildly misaligned expectations early saves everyone time.

Understanding candidate priorities helps employers assess fit. Your compensation expectations reveal something about how you value yourself, what you prioritize (base salary versus benefits versus flexibility), and whether the opportunity is appropriate for your experience level.

Anchoring negotiations is another motivation. Whoever states a number first often sets the range around which negotiations revolve. Some employers ask about expectations hoping candidates will anchor low, giving the employer negotiating advantage later.

Screening for self-awareness helps employers assess whether you understand your market value. Expectations dramatically above or below market suggest you haven’t done research or don’t accurately assess your experience level—both potential concerns.

Knowing these motivations helps you respond strategically rather than reactively.

Do Your Research First

Effective responses require knowing what competitive compensation looks like for your target role, experience level, and geographic market.

Research salary ranges through multiple sources:

• Sites like Glassdoor, PayScale, LinkedIn Salary, and Indeed provide crowd-sourced salary data for specific roles and locations
• Industry surveys and professional association compensation reports offer benchmark data
• Job postings increasingly include salary ranges (and some jurisdictions require this)
• Recruiters can share market rate information for roles they place
• Professional networks may share compensation information informally

Consider all compensation components, not just base salary:

• Annual bonus and bonus potential
• Equity compensation (stock options, RSUs, profit sharing)
• Benefits value (healthcare, retirement contributions, PTO)
• Signing bonuses
• Professional development budgets
• Remote work flexibility and associated cost savings
• Other perks with monetary value

Understand how your qualifications affect appropriate expectations:

• Years of relevant experience
• Specialized skills or certifications
• Advanced degrees or credentials
• Notable achievements or accomplishments
• Current compensation (as one data point, not the determinant)

With solid research, you can discuss compensation from knowledge rather than guessing. You’ll sound confident because you are confident—your expectations are grounded in data.

Strategic Response Approaches

Several approaches work for handling compensation questions, each with advantages and appropriate situations.

The deflection approach attempts to delay the conversation: “I’d like to learn more about the role and responsibilities before discussing compensation. Once I better understand the full scope of the position, I can share expectations that reflect the role accurately.”

This can work early in the process when discussing specifics truly is premature. However, persistent deflection can frustrate interviewers and seem evasive. Use this once, perhaps, but have a substantive answer ready if pressed.

The research-based range approach shares your findings: “Based on my research into market rates for this role in this region, combined with my experience level and qualifications, I’m targeting positions in the $85,000 to $95,000 range. Of course, I’m interested in the total compensation package, including benefits and any other components.”

This approach demonstrates preparation and provides useful information while preserving negotiating room through a range rather than single number.

The turn-the-question approach asks for their range: “I’m focused on finding the right fit and I’m flexible within market rate for this role. Can you share the salary range you’ve budgeted for this position?”

This works best when salary transparency laws require disclosure or when employers are genuinely open to sharing. It shifts the anchoring advantage to you. However, some employers won’t share, and you need a backup approach.

The total compensation approach shifts the conversation: “Compensation is important, but I’m evaluating opportunities holistically—base salary, bonus potential, equity, benefits, and growth opportunities all factor into my decision. I’d love to understand the complete compensation philosophy here. What can you tell me about the total package for this role?”

This demonstrates sophistication about compensation while potentially revealing more about what the employer offers.

The straightforward approach simply states your number: “Based on my experience and the market rate for this role, I’m looking for $90,000.”

Direct and confident, this works when you’ve researched thoroughly and are comfortable with the number. It can feel risky, but clarity is sometimes appreciated.

Crafting Your Range

If providing a range, construct it strategically.

Your bottom number should be genuinely acceptable. Don’t include numbers you’d actually reject just to seem flexible. If $80,000 is your minimum acceptable, don’t say $75,000-$90,000.

Your top number should be ambitious but defensible. It should represent appropriate compensation for someone with your qualifications in this role, not a fantasy figure you can’t justify.

A reasonable range spans about 10-20%. Too narrow seems inflexible; too wide seems like you have no idea. “$85,000 to $95,000” is reasonable. “$60,000 to $120,000” suggests uncertainty.

Consider your starting point carefully. Some candidates anchor high, knowing there’s more room to negotiate down than up. Others prefer quoting their true target as the midpoint. Your approach depends on your negotiating style and risk tolerance.

Handling Different Interview Stages

When the compensation question arises affects how you should respond.

During initial screening (phone screen or application), a range typically suffices. Recruiters screen for basic alignment; they don’t expect negotiated agreements. A reasonable range demonstrates you’re in the ballpark.

During first interviews, you might still deflect briefly while expressing general flexibility and asking about their range. You’re still learning about the role, making detailed discussion premature.

During later interviews, more specific discussions are appropriate. By now, you understand the role’s demands and should be prepared to discuss compensation more concretely.

During offer negotiation, the conversation shifts from expectations to actual negotiation. At this point, you’re not predicting—you’re advocating for specific terms. Different strategies apply.

Timing your specificity to the interview stage shows awareness of appropriate process and avoids either premature commitment or frustrating evasiveness.

What to Avoid

Certain approaches commonly backfire when discussing compensation expectations.

Sharing your current salary as your expectation anchors you to past compensation regardless of market value for the new role. In many jurisdictions, employers can’t even ask about current salary. Don’t volunteer information that might limit your new compensation.

Apologizing for your expectations suggests you don’t believe you deserve them. State expectations confidently. “I know this might be high, but…” undermines your position before you’ve even stated it.

Providing a single number eliminates negotiating flexibility. Even if you have a specific target, framing as a range preserves room to adjust based on other factors.

Stating drastically unrealistic expectations—either too high or too low—damages credibility. Research ensures you’re in the appropriate range.

Fixating only on salary ignores total compensation. Benefits, equity, flexibility, and growth opportunities all have value. Demonstrating narrow focus on salary alone seems unsophisticated.

Being dishonest about expectations leads to problems later. If you truly won’t accept below $90,000, saying “$75,000-$85,000” wastes everyone’s time when offers come.

Scripts for Different Scenarios

Having prepared language helps you respond confidently in the moment.

When asked early in the process: “I’m at the early stages of learning about this opportunity, so I want to understand more about the role’s responsibilities and the team I’d be working with before getting into specific numbers. That said, I’ve researched the market for similar roles and am targeting positions in the competitive range for my experience level. Can you share what you’ve budgeted for this role?”

When pressed for a specific number: “Based on my research into comparable roles in this market, and considering my experience with [specific relevant skill or achievement], I’m targeting total compensation in the range of $X to $Y. I’m certainly open to discussing how base salary, bonuses, and benefits combine to reach that level.”

When you want to turn it back to them: “I’m flexible within the market rate for this role and am confident we can find alignment if the fit is right. What salary range have you established for this position?”

When they’ve shared their range first: “That’s helpful, thank you. That range aligns well with my research into market compensation for this role. Given my experience in [specific area] and track record of [relevant achievement], I’d expect to be at the [middle/higher end] of that range.”

When discussing in final stages: “Throughout this process, I’ve become even more excited about this opportunity. Given the scope of the role and my ability to contribute in [specific areas], I’m looking for total compensation in the range of $X to $Y, with flexibility on how that’s structured between base, bonus, and equity.”

Handling Salary History Questions

Related to expectations questions are salary history questions, asking what you currently or previously earned. These questions are increasingly prohibited by law in many jurisdictions, but you may still encounter them.

If asked where illegal, you can politely note that you believe salary history questions aren’t asked in your jurisdiction, then offer to discuss your expectations instead.

If asked where legal, you can choose to answer, redirect to expectations, or decline. Options include:

“I’m happy to share my compensation expectations for this role based on market research and the responsibilities involved.” (Redirects to expectations)

“I’d prefer to focus on the value I’ll bring to this position and appropriate compensation for this role rather than what previous employers chose to pay.” (Politely declines)

“My current compensation is $X, but I’m evaluating opportunities based on the role itself and market rates rather than percentage increases from my current position.” (Shares but reframes)

There’s no obligation to volunteer salary history even where asking is legal. The information primarily serves employers’ interests in anchoring negotiations low.

When Expectations Don’t Align

Sometimes it becomes clear that your expectations and the employer’s budget don’t match. Handling this professionally preserves relationships and leaves doors open.

If their range is below yours: “I appreciate you sharing that range. It’s lower than I was targeting based on my research and experience level. Before I make any decisions, I’d like to understand more about the total compensation picture—are there performance bonuses, equity, or other components that might affect total compensation? And what does growth look like for someone in this role?”

This explores whether total compensation might bridge the gap and demonstrates you’re evaluating comprehensively.

If the gap seems insurmountable: “Thank you for being transparent about the range. Based on my career goals and market research, that’s below what I’m targeting for my next role. I want to be respectful of your time—is there flexibility in the range, or should we perhaps conclude our conversations here?”

This is honest without burning bridges. The employer may reveal hidden flexibility, or you may part ways professionally.

If you’re willing to accept despite lower expectations: “That’s a bit below where I’d been targeting, but I’m very interested in this opportunity for [specific reasons]. If the role delivers on [growth opportunity, learning opportunity, or other non-monetary value], I could see finding alignment within that range.”

This shows flexibility while communicating that you’re not simply accepting whatever’s offered—there’s a reason you’re adjusting.

Negotiation Versus Expectations

Expectations discussions differ from actual negotiations, though they’re related.

During expectations conversations, you’re providing information about the general range you’re targeting. This happens before offers, during screening or interviews.

During negotiation, you’ve received an offer and are advocating for specific terms. The dynamic shifts—they’ve decided they want you, giving you more leverage.

Don’t over-negotiate during expectations discussions. Extreme position-taking or aggressive tactics before you even have an offer can damage the relationship and cost you the opportunity entirely.

Save real negotiation for the offer stage. During expectations discussions, aim for clear, confident, professional communication that positions you for later negotiation without alienating interviewers.

Tools like 0portfolio.com can help you organize your compensation research and track salary data for positions you’re pursuing, ensuring you’re prepared for these conversations across multiple opportunities.

Confidence Is Key

Perhaps most importantly, approach compensation discussions with confidence. Your demeanor affects how your expectations are received as much as the actual numbers.

Speak about compensation matter-of-factly, as a normal business discussion. Because it is. Employers expect these conversations; discomfort stands out.

State expectations without excessive justification or apology. “Based on my research, I’m targeting $X to $Y for this role” is sufficient. You don’t need to prove you deserve market rate.

Maintain positive energy. Compensation discussions shouldn’t become adversarial. You’re trying to find alignment, not win against the employer.

Remember that qualified candidates are valuable. If you’ve earned interviews, you have something the employer wants. Negotiate from that position of strength rather than desperation.

Conclusion

The compensation expectations question doesn’t have to be a trap. With research, preparation, and strategic approaches, you can handle these discussions professionally while protecting your interests.

Know the market rate for your target role. Understand what you genuinely want and what you’d accept. Prepare responses that provide useful information while preserving negotiating flexibility. Practice delivering those responses confidently.

When the question comes—and it will—you’ll be ready. Your answer will demonstrate professionalism, market awareness, and appropriate self-valuation. That impression serves you throughout the hiring process and sets up successful offer negotiations when they come.

Most importantly, remember that compensation discussions are normal parts of hiring processes. Employers expect to have them. Approach these conversations as collaborative explorations of fit rather than confrontations. When both parties engage openly and professionally, alignment is usually achievable—and both sides feel good about the outcome.