See where a salary sits in its pay range. Get the compa-ratio (salary ÷ midpoint) and range penetration, build a minimum and maximum from a midpoint and spread, and check a whole team's group compa-ratio.
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$
Base pay in the same unit as the range (annual or hourly).
How do you know the pay range?
$
$
$
%
Spread = (max − min) ÷ min. Typical: 30-40% for hourly roles, 50-60% professional, 70%+ executive.
± %
One per line, with or without a name. Leave empty to skip.
Enter your values to see the result.
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How to use the Compa-Ratio Calculator
Enter the employee's salary (annual or hourly, matching the range).
Choose how you know the range: minimum and maximum, midpoint and spread, or midpoint ± a percentage.
Enter the range values; the calculator fills in the rest of the range.
Optionally paste team salaries, one per line, for a group compa-ratio.
Press Calculate compa-ratio to see the ratio, penetration, range and team table.
Range spread = (maximum − minimum) ÷ minimum × 100
From midpoint and spread: minimum = midpoint × 2 ÷ (2 + spread), maximum = minimum × (1 + spread)
Example: a range of $60,000 to $90,000 has a midpoint of $75,000 and a spread of 50%. An employee paid $72,000 has a compa-ratio of 72,000 ÷ 75,000 = 0.96 and a range penetration of (72,000 − 60,000) ÷ 30,000 = 40%. A raise of $3,000 (4.2%) would bring them to the midpoint.
How compa-ratios are commonly read
Compa-ratio
Usual interpretation
Below 0.80
Well below the range target; check for pay equity or a recent promotion
0.80 – 0.90
Learning the role or recently hired
0.90 – 1.10
Fully competent, paid around market
1.10 – 1.20
Very experienced or consistently high performing
Above 1.20
Near or over the range maximum
These bands are typical guidelines, not rules. Your compensation policy decides how ratios link to merit increases.
Using compa-ratios for raises
Merit matrices often give larger percentage increases to strong performers with low compa-ratios and smaller ones to people already high in the range.
Review group ratios by team, gender or location to spot pay gaps that need attention.
Update ranges when market data moves, or compa-ratios drift even if nobody's pay changes.
Frequently asked questions
What is the compa-ratio formula?
Compa-ratio = salary ÷ midpoint of the pay range. A salary of $72,000 in a range with a $75,000 midpoint has a compa-ratio of 0.96, often written as 96%. A ratio of 1.00 means the employee is paid exactly at the midpoint.
What is a good compa-ratio?
Many organizations treat roughly 0.90 to 1.10 as paid at market for a fully competent employee. Below 0.90 is common for people new to the role, and above 1.10 for long-serving or top performers. Each employer sets its own guidelines.
What is the difference between compa-ratio and range penetration?
Compa-ratio compares pay with the midpoint. Range penetration shows how far through the whole range the salary is: (salary − minimum) ÷ (maximum − minimum). In a $60,000-$90,000 range, $72,000 has a compa-ratio of 0.96 and a range penetration of 40%.
How do I calculate the minimum and maximum from a midpoint and spread?
Range spread is (max − min) ÷ min. Given a midpoint and spread: minimum = midpoint × 2 ÷ (2 + spread) and maximum = minimum × (1 + spread). A $75,000 midpoint with a 50% spread gives $60,000 to $90,000.
What is a group compa-ratio?
The group compa-ratio is the average salary of a team or job grade divided by the midpoint (or the average of each person's compa-ratio when ranges differ). It shows whether a group as a whole is paid below, at or above the intended market level.
Can a compa-ratio be above 1.20?
Yes. It usually means pay is above the range maximum or near it, called red-circled pay. Organizations often hold base pay steady and use lump-sum increases until the range moves up.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.