How to use the compa-ratio and range penetration calculator
- Enter the range minimum and maximum of the pay band, and the midpoint if it is not halfway between them.
- Paste one salary per line. A name is optional: write the name, a comma and the salary.
- Use the same pay basis for the range and the salaries, such as annual pay.
- Read the compa-ratio and the range penetration for each salary and for the average, with the part of the range it falls in.
Formula
compa-ratio = salary / midpoint
range penetration = (salary - minimum) / (maximum - minimum)
range spread = (maximum - minimum) / minimum
A compa-ratio of 1.000 is a salary at the midpoint. Penetration is 0 percent at the minimum and 100 percent at the maximum; values below 0 or above 100 percent mean the salary is outside the range.
A range of $60,000 to $100,000
With a minimum of $60,000 and a maximum of $100,000, the midpoint is $80,000. A salary of $72,000 has a compa-ratio of 0.900 and a penetration of 30.0 percent. $80,000 gives 1.000 and 50.0 percent. $96,500 gives 1.206 and 91.3 percent, and $58,000 gives 0.725 and -5.0 percent, below the minimum.
The four salaries average $76,625, which is a compa-ratio of 0.958 and a penetration of 41.6 percent. The range spread is 66.7 percent. With a midpoint of $75,000 instead, a salary of $70,000 has a compa-ratio of 0.933.
Two ways to describe where a salary sits
Compa-ratio compares a salary with the middle of its range, as a ratio. It is easy to compare across jobs with different ranges. Range penetration shows how far through the range the salary has moved, which is more useful for judging how much room is left to grow. Two jobs with the same compa-ratio can have different penetration if their ranges have different widths.
Neither measure says whether the range is right. This tool contains no market data. For raises and offers, see the pay raise calculator, the job offer comparison calculator and the salary inflation adjustment calculator. For part-year pay, use the mid-period salary proration calculator.
Using the numbers with care
A compa-ratio is a ratio about a salary inside a range that you provide. Whether a particular ratio is high, low or right depends on the role, experience, location and policy of the employer, and on the law where you are. These figures are not a recommendation for any pay decision.
Assumptions and limits
- The range has a minimum below a midpoint below a maximum, in the same units as the salaries.
- If you leave the midpoint blank it is halfway between the minimum and the maximum.
- A line with a name must end with a number; the name is shown but not used in the calculation.
- Up to 500 salaries are accepted.
Frequently asked questions
What is a good compa-ratio?
There is no single answer. Many employers see a value near 1.0 as a fully experienced person in the role, with lower values for people still learning the job, but each employer sets its own view.
Can the midpoint differ from the halfway point?
Yes. Some ranges are set with a midpoint that is not halfway, so the tool lets you enter it. Penetration always uses the minimum and maximum, not the midpoint.
What does a negative penetration mean?
The salary is below the minimum of the range. A value above 100 percent means it is above the maximum.
Should I enter hourly pay?
You can, as long as the range and the salaries use the same basis. The ratio does not change when everything is multiplied by the same factor.