Free Compensation Ratio Calculator
Calculate the compa-ratio to measure how an employee's pay compares to the midpoint of their salary range.
Compa-Ratio
90.00%
Compa-Ratio vs Actual Salary
How to Calculate Compa-Ratio
Formula
Compa-Ratio = (Actual Salary / Range Midpoint) x 100
The compa-ratio (compensation ratio) tells you where an employee sits relative to the target pay for their role. A compa-ratio of 100% means they are paid exactly at midpoint. Below 100% means below midpoint (often newer employees or those with room to grow). Above 100% means above midpoint (often tenured high performers). Most organizations target 80-120% of midpoint as the acceptable range.
Example Calculation
An employee earns $72,000 and the midpoint for their salary band is $80,000.
- 01Compa-Ratio = ($72,000 / $80,000) x 100 = 90%
- 02Gap to Midpoint = $72,000 - $80,000 = -$8,000
- 03The employee is paid 10% below the range midpoint.
Frequently Asked Questions
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