Compa Ratio Calculator: Salary Range Position

How the compa-ratio calculator works

Compa-ratio compares an employee salary with the midpoint of a salary range. A result of 100% means the salary equals the midpoint. A result below 100% means it is below the midpoint; a result above 100% means it is above the midpoint.

The calculator derives the midpoint from the minimum and maximum you enter. It also calculates range penetration, which answers a different question: how far the salary has moved from the range minimum toward the maximum.

Compa-ratio and range penetration formulas

Range midpoint: (range minimum + range maximum) ÷ 2.

Compa-ratio: employee salary ÷ range midpoint.

Compa-ratio percentage: compa-ratio × 100.

Range penetration: (employee salary − range minimum) ÷ (range maximum − range minimum) × 100.

Target salary: range midpoint × target compa-ratio percentage ÷ 100.

Checked example

Suppose a salary range runs from US$60,000 to US$100,000 and the employee salary is US$72,000. The midpoint is (US$60,000 + US$100,000) ÷ 2 = US$80,000.

The compa-ratio is US$72,000 ÷ US$80,000 = 0.90, or 90%. Range penetration is (US$72,000 − US$60,000) ÷ (US$100,000 − US$60,000) = 0.30, or 30%. A target compa-ratio of 100% corresponds to US$80,000, an increase of US$8,000 from the entered salary.

Compa-ratio versus range penetration

These percentages are related but not interchangeable. Compa-ratio uses the midpoint as its reference. Range penetration uses the full distance between minimum and maximum. If the range is symmetrical around its midpoint, the midpoint has a compa-ratio of 100% and range penetration of 50%.

A salary below the minimum produces negative range penetration. A salary above the maximum produces a value greater than 100%. The calculator leaves those values visible so an out-of-range salary is not hidden.

How to interpret the result carefully

• A compa-ratio is only as useful as the salary range entered. Confirm that the range applies to the same role, level, location, currency and pay period.
• Neither 100% nor any other value is automatically the correct salary. Experience, performance, skills, tenure, internal equity and the employer’s pay philosophy may affect compensation decisions.
• The result does not include bonus, commission, equity, benefits, overtime or other total-reward components unless those amounts are intentionally included in both the salary and range.
• Do not mix annual salary with a monthly or hourly range. All three monetary inputs must use the same basis.
• This calculator describes numerical position and does not determine unlawful pay discrimination, market competitiveness or a required raise.

Frequently asked questions

Is a compa-ratio of 100% always ideal?

No. It means only that salary equals the range midpoint. Employers may position pay differently based on their compensation policy and the employee’s qualifications or performance.

Can compa-ratio be above 100%?

Yes. It means salary is above the midpoint. A salary can remain inside the range while exceeding 100%, and it can exceed the range maximum as well.

Why is 100% compa-ratio only 50% range penetration?

The midpoint lies halfway between the minimum and maximum. Compa-ratio compares with that midpoint, while range penetration starts at the minimum.

Can I use hourly or monthly pay?

Yes. Use any consistent pay period: hourly salary with an hourly range, monthly salary with a monthly range, or annual salary with an annual range.

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