Salary benchmark tool

Free Compa Ratio Calculator

A compa-ratio calculator compares an employee's salary with the midpoint of a market salary range. Enter the salary and range values to see the compa-ratio, range penetration, and whether pay sits below, near, or above the midpoint.

Current compa-ratio

96.00%

Around midpoint. A 100% ratio equals the salary range midpoint.

Salary inputs

Use annual base salary values from the same currency and data source.

Salary range position

Live results update as salary or range inputs change.

Around midpoint

Compa-ratio

96.00%

Salary divided by range midpoint, multiplied by 100.

Range penetration

40.00%

Progress from the range minimum toward the range maximum.

Gap to midpoint

$3,000

Additional salary needed to reach midpoint.

Gap to maximum

$18,000

Distance from salary to range maximum.

Range minimumRange maximum
$60,000Midpoint $75,000$90,000

Formula

Compa-ratio = salary ÷ range midpoint × 100

Range penetration = (salary - minimum) ÷ (maximum - minimum) × 100

How to read the result

Below 95%

Below midpoint. Review experience, performance, tenure, internal equity, and market fit.

95% to 105%

Around midpoint. The employee's salary is within five percent of the market midpoint.

Above 105%

Above midpoint. Confirm the position aligns with role scope, experience, and pay policy.

These interpretation bands are general planning guidance, not a compensation decision rule. Use current market data, internal equity, location, role level, performance, and applicable employment requirements.

Worked compa-ratio example

An employee earning $72,000 in a $60,000 to $90,000 range with a $75,000 midpoint has a 96% compa-ratio. The employee is 40% through the full range and earns $3,000 below the midpoint.

Frequently asked questions

What is a compa-ratio?

A compa-ratio is an employee's salary divided by the salary-range midpoint, multiplied by 100. A result of 100 percent means salary equals the midpoint.

What is a good compa-ratio?

Many organizations view roughly 95 to 105 percent as close to midpoint, but appropriate bands depend on experience, performance, tenure, market data, and compensation policy.

How is range penetration different from compa-ratio?

Compa-ratio compares salary with the midpoint. Range penetration measures how far salary has moved from the range minimum toward the range maximum.

Can a compa-ratio be above 100 percent?

Yes. A compa-ratio above 100 percent means salary is above the range midpoint. It does not by itself mean the salary is above the range maximum.

Should bonuses be included in compa-ratio?

Compa-ratio usually compares base salary with a base-salary range. Use a separate total-compensation analysis when bonuses, commissions, or equity are material.

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