# Compa-Ratio Calculator

> Calculate an employee’s compa-ratio (salary ÷ range midpoint) and range penetration to see where their pay sits within the salary band.

Category: Salary, HR & payroll · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/compensation-compa-ratio-calculator

Compa-ratio compares a salary with the midpoint of its pay range: 1.00 (100%) is exactly at midpoint. Range penetration shows how far through the band from minimum to maximum the salary sits.

Also called: Comparative ratio calculator, Range penetration calculator.

## Inputs
- Employee salary (default 57000)
- Pay range midpoint (default 60000)
- Range minimum (default 48000; optional)
- Range maximum (default 72000; optional)
- Currency

## Results
- Compa-ratio
- Compa-ratio as %
- Gap to midpoint
- Range penetration
- Position

## Formula

```
Compa-ratio = Salary ÷ Midpoint;  Range penetration = (Salary − Minimum) ÷ (Maximum − Minimum) × 100
```

Where:
- Midpoint: the market reference point of the pay range
- Minimum, Maximum: the ends of the pay range

## Worked example
1. Compa-ratio = 57,000 ÷ 60,000 = 0.95 (95%).
2. Penetration = (57,000 − 48,000) ÷ (72,000 − 48,000) = 9,000 ÷ 24,000 = 37.5%.

**Result:** 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.

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Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/compensation-compa-ratio-calculator