Compa-Ratio Calculator where a salary sits
Enter a salary and the pay band it belongs to. You get the compa-ratio against the midpoint, the range penetration across the band, and where both place you.
100 % Is the Market Rate
The midpoint is the rate the band was designed around, not the average of the people in it.
Base Salary Only
Bonus, equity and allowances sit outside the band and outside both metrics.
What is a compa-ratio?
At a Glance
Compa-ratio — short for comparative ratio — is a salary divided by the midpoint of its pay band, expressed as a percentage. It is the single number compensation teams use to answer "is this person paid at market?", and it is the metric behind most merit-increase matrices.
Two metrics, built on the same band, answering different questions.
compa-ratio = salary ÷ midpoint × 100, midpoint = (min + max) ÷ 2penetration = (salary − min) ÷ (max − min) × 100The two disagree on purpose. Compa-ratio compresses toward 100 % because the midpoint sits in the middle of the band, while range penetration uses the full 0-100 spread. On the figures above, 96 % sounds like "basically at market" and 40 % sounds like "in the lower half" — both are true, and quoting only one of them is how compensation conversations go wrong.
According to WorldatWork's compensation-management guidance, the midpoint is set from external market data for the role, not from the salaries of the people currently in the band. That is why a whole team can sit below 100 % without anyone being underpaid relative to their experience.
These are the values the calculator loads by default.
Find the midpoint
(60,000 + 90,000) ÷ 2 = 75,000 — the market rate the band is anchored to.
Divide the salary by it
72,000 ÷ 75,000 = 0.96, so the compa-ratio is 96 %.
Measure across the band instead
(72,000 − 60,000) ÷ 30,000 = 40 % range penetration.
Read the distance to the midpoint
75,000 − 72,000 = 3,000 to reach the market rate — a 4.2 % increase.
Check the band edges
At the minimum of 60,000 the compa-ratio is 80 %; at the maximum of 90,000 it is 120 %. Every band with symmetric edges spans exactly that.
The bands on the gauge are the ones compensation teams review against.
Below 80 % — outside the band. The salary sits under the range minimum. This is usually either a mis-mapped grade, a very new hire on a deliberate ramp, or a genuine correction waiting to happen.
80 to 95 % — developing. Normal for someone new to the level and still growing into it. Merit matrices typically give the largest percentage increases here.
95 to 105 % — at market. The intended home for a fully competent performer in the role. Most of a healthy team sits here.
105 to 120 % — above market. Reserved for sustained high performers and deep experience. Increases slow down as the salary approaches the band top.
Above 120 % — outside the band. The salary has run past the range maximum. Organisations usually freeze base pay here and move to lump-sum awards instead, or re-grade the role.
Quote both metrics. A compa-ratio near 100 % on a wide band can still mean a low range penetration, which is exactly the case a manager needs to see when planning a raise.
For turning an annual figure into an hourly rate, use the Salary to Hourly Calculator.
What the ratio does and does not capture
This calculator is for informational and planning purposes, not compensation advice.
- It is only as good as the band. A midpoint from stale or badly matched survey data produces a confident-looking ratio that means nothing.
- Base salary only. Bonus, equity, allowances and benefits are excluded, so two people at the same compa-ratio can be paid very differently in total.
- Geography and currency matter. Bands are usually set per market; comparing a salary against another region's band is a category error.
- Part-time roles need the full-time equivalent. Enter the annualised full-time figure, not the pro-rated one.
- The 80/95/105/120 boundaries are conventions. Many organisations use quartiles or a different band width, and their matrices will differ.
Verify the band against your employer's published structure, and consult a compensation professional or a financial advisor before making decisions that depend on it.