Promotion Salary Calculator

Work out the salary a promotion should carry given the band midpoint and the increase offered.

About Promotion Salary Calculator

A promotion increase that leaves someone below the new band minimum creates an immediate equity problem. Compa-ratio is the standard measure of position in band and predicts how much headroom remains for future increases. Promoting someone to the bottom of a band guarantees another pay conversation within a year, and it is usually cheaper to place them properly at the outset.

Formula

Promotion Salary

Compa-ratio = salary ÷ band midpoint; a promotion should at least clear the band minimum

compa-ratio: Position within the pay band, where 1.0 is exactly the midpoint

Worked example

With the default values below, Promotion Salary Calculator returns Proposed New Salary of $58,240.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current salaryminimum 0: 52,000
Promotion increase offeredaccepts 0–100 %: 12 %
New band minimumminimum 0: 58,000
New band midpointminimum 0: 68,000

Results

Proposed New Salary: $58,240.00
Compa-Ratio Against the Band Midpoint: 0.857
Gap to the Band Midpoint: $9,760.00
Increase Needed to Reach the Band Minimum: $0.00
Verdict: In band but low against midpoint — expect a follow-up review

Step by step

1Values used
2Promotion Salary
3Proposed New Salary= 58,240.00
4Compa-Ratio Against the Band Midpoint= 0.857
5Gap to the Band Midpoint= 9,760.00
6Increase Needed to Reach the Band Minimum= 0.00
7Verdict= In band but low against midpoint — expect a follow-up review

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 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

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

Frequently Asked Questions

How is Promotion Salary calculated?

Compa-ratio = salary ÷ band midpoint; a promotion should at least clear the band minimum A promotion increase that leaves someone below the new band minimum creates an immediate equity problem. Compa-ratio is the standard measure of position in band and predicts how much headroom remains for future increases.

Why does Promotion Salary matter?

Promoting someone to the bottom of a band guarantees another pay conversation within a year, and it is usually cheaper to place them properly at the outset.

What values do I need to enter?

This calculator takes 4 inputs: Current salary, Promotion increase offered, New band minimum, New band midpoint. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.