Payroll calculator
Compa-Ratio Calculator
Calculate base-pay position against an applicable salary-range midpoint and range. Use the result as one employer-defined positioning signal, not a rewards, equity, or pay-action conclusion.
Published under the HR Hub Editorial Team institutional byline and maintained by Michael Walmer, the site operator. No independent professional review is claimed unless a named reviewer is shown.
Compa-Ratio Formula
Compa-Ratio = Annualized Base Pay / Salary Range Midpoint × 100
Inputs used in this calculator
- Annualized Base Pay: Annualized base pay excluding bonuses, variable pay, benefits, overtime, differentials, and other non-base elements.
- Range Midpoint: Midpoint of the applicable pay range.
- Range Minimum: Minimum of the applicable salary range.
- Range Maximum: Maximum of the applicable salary range.
How to use the result
- Enter the employee's current salary and the salary range midpoint.
- Add the range minimum and maximum for range-position context.
- Review compa-ratio and midpoint gap before deciding on pay actions.
Method, scope, and sources
Compa-ratio = annualized base pay ÷ the midpoint of one current, matched salary range × 100. Advanced range penetration = (annualized base pay − range minimum) ÷ (range maximum − range minimum) × 100. Results are unavailable unless minimum < midpoint < maximum.
Use annualized base pay only and a matched job or benchmark, grade or range, geography, currency, FTE/work-year basis, and effective date. Range penetration may fall below 0% or above 100%. The outputs are descriptive and do not establish market competitiveness, pay equity, performance, fairness, compression, or a pay recommendation.
Method status: Supported.
Worked example
Hypothetical: annualized base pay is $86,000 and a current matched range is $72,000 minimum, $90,000 midpoint, and $108,000 maximum. Compa-ratio = 95.56%; range penetration = 38.89%; midpoint gap = −$4,000. No pay action follows from these arithmetic comparisons alone.
Sources
- West Virginia University Talent and Culture — Compa-Ratio: Directly states compa-ratio = actual salary ÷ market rate/range midpoint × 100, provides a worked example, and shows that its threshold interpretations are employer-specific.
- University of Wisconsin–Madison School of Medicine and Public Health Human Resources — Compensation Glossary of Terms: Supports target-market/midpoint framing, base-pay exclusions, and range-penetration formula; its bands are local practice, not universal.
- UNT System Human Resources — Compensation Glossary of Terms: Defines the relationship between base pay and assigned salary-range midpoint and identifies 1.0 as midpoint positioning.
Questions about this calculation
What does a compa-ratio below 100 mean?
It establishes only that the entered annualized base pay is below the selected midpoint. Interpretation requires employer policy, job and range matching, market context, and other relevant evidence.
Is compa-ratio enough for pay decisions?
No. Compa-ratio is useful context, but pay decisions should also consider performance, tenure, skill scarcity, equity, and overall rewards policy.
Read the companion guide
Compa-Ratio Calculator Guide: How to Explain Pay Positioning More Clearly
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