Compa Ratio Calculator

Work out compa ratio instantly with clear inputs, formula shown and shareable results.

About Compa Ratio Calculator

Compa-ratio is salary divided by band midpoint: 1.00 means paid at the market reference rate. Range penetration expresses the same position as a percentage of the way through the band, which is the more useful measure when bands are asymmetric around the midpoint.

Formulas

Compa-ratio

Compa-ratio = Salary / Band midpoint

Range penetration

Penetration % = (Salary - Minimum) / (Maximum - Minimum) x 100

Worked example

With the default values below, Compa Ratio Calculator returns Compa-ratio of 0.9200. Change any input above and every figure here is recalculated in your browser.

Inputs used

Employee salary: 1,150,000
Band midpoint: 1,250,000
Band minimum: 950,000
Band maximum: 1,550,000

Results

Compa-ratio: 0.9200
Range penetration: 33.33%
Position assessment: Developing
Gap to midpoint: $100,000.00

Step by step

1Values used
2Compa-ratio
3Range penetration
4Compa-ratio= 0.9200
5Range penetration= 33.33
6Position assessment= Developing
7Gap to midpoint= 100,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What compa-ratio should a new hire have?

Usually 0.85-0.95, leaving room to progress to midpoint as they become fully competent. Hiring at midpoint removes that headroom.

What does a group compa-ratio above 1.0 indicate?

Either a long-tenured team, over-payment relative to market, or bands that have not been updated. All three warrant investigation.