How to use this calculator
- Enter or choose employee salary.
- Enter or choose pay range midpoint.
- Enter or choose range minimum.
- Enter or choose range maximum.
- The compa-ratio updates as you type. Use Copy result or Share to keep it.
Method
Compa-ratio = Salary ÷ Midpoint; Range penetration = (Salary − Minimum) ÷ (Maximum − Minimum) × 100
- Midpoint
- the market reference point of the pay range
- Minimum, Maximum
- the ends of the pay range
Worked example
- Compa-ratio = 57,000 ÷ 60,000 = 0.95 (95%).
- Penetration = (57,000 − 48,000) ÷ (72,000 − 48,000) = 9,000 ÷ 24,000 = 37.5%.
A $57,000 salary in a $48,000–$72,000 band is at a 0.95 compa-ratio, $3,000 below midpoint and 37.5% of the way through the range.
What the result means
Below 1.00 is common for people new to a role; well above 1.00 usually means long service or very strong performance. Comparing average compa-ratios between groups is a quick first check for pay inconsistencies.
Assumptions and limits
- The salary and the range are on the same basis (annual base pay, same location and grade).
- Compa-ratio is only as good as the pay range behind it; ranges need regular market review.
Questions
What is a good compa-ratio?
Many organisations aim for experienced, fully competent staff to sit around 0.95–1.05, but the right target depends on your pay policy.
Why use range penetration as well?
Two people can share a compa-ratio in bands of different widths. Penetration shows position within the band itself, from 0% at minimum to 100% at maximum.