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Compa-Ratio Calculator

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Compa-ratio

96.0%

Compa-ratio: 96.0 %

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Examples
How the result moves

Your current valid inputs, with one value varied across the range.

Top of the pay band → Compa-ratio (%)
Top of the pay band: 90,000; Compa-ratio: 96 %

How the result moves

Held fixed: Salary 72,000.00, Bottom of the pay band 60,000.00.

Top of the pay bandCompa-ratio (%)
50,000.00130.9
75,000.00106.7
90,000.00Your value96.0
100,000.0090.0
125,000.0077.8

The compa-ratio measures a salary against the midpoint of its band, not against the bottom. One hundred percent means paid at the midpoint — which is usually the rate for someone fully competent in the role, not a ceiling and not a target for everyone.

Worked examples

How it's calculated

compa-ratio = salary / band midpoint × 100

  1. StepEnter the salary you want to place.Salary=72,000
  2. StepEnter the bottom and top of the pay band.Bottom of the pay band=60,000·Top of the pay band=90,000
  3. ResultRead the percentage against the midpoint.96.0%

What this number means

This page places a salary inside its pay band and reports the result as a percentage of the band midpoint. The midpoint is the whole point of the measure: comparing against the bottom of a band tells you only that someone clears the minimum, while comparing against the middle says how far along the band they actually sit. The calculation is one division.

On the values the page starts with, a band running from 60,000 to 90,000 has its midpoint at 75,000, and a salary of 72,000 divided by that midpoint gives 96 percent — a little under the middle, nowhere near the top. The edges of that same band come out at 80 and 120 percent, which is worth holding on to: under range penetration, which counts up from the bottom, those two salaries would read 0 and 100 percent instead. What the percentage does not contain is any adjustment for hours.

Pay bands are normally quoted full-time, so a part-time salary belongs converted to its full-time equivalent before it goes in; the calculator carries no factor of its own. The assumption that matters most is the midpoint. This page takes it as the middle between the minimum and the maximum entered, but some employers set the midpoint first and derive the edges from it. If yours does, enter the edges belonging to that midpoint — otherwise the percentage is measured against the wrong reference.

Measured against the midpoint, not the bottom

The reference is the middle of the band. That is what separates the compa-ratio from range penetration, which measures the distance from the bottom.

Default band edges: 80 and 120 percent

On the default band the bottom comes out at 80 % and the top at 120 %. Under range penetration those same two salaries would read 0 % and 100 %.

Compare full-time equivalents

Pay bands are normally quoted full-time, so a part-time salary belongs converted before it is entered. The calculator has no part-time factor of its own.

Commonly misread

MisconceptionOne hundred percent means I am at the top of my band.

CorrectionIt means paid exactly at the midpoint. On the default band the top is 120 %.

MisconceptionA compa-ratio of 100 % is the target for everyone.

CorrectionThe midpoint is normally the rate for someone fully competent in the role. It is neither a ceiling nor a target for everyone.

MisconceptionThe midpoint is always halfway between the minimum and the maximum.

CorrectionThis calculator takes it that way, but some employers set the midpoint first and derive the edges from it. If yours does, enter the edges that belong to that midpoint.

Reference table

Compa-ratioUsually read as
Below 80 %Below 80% of midpoint; compare salary with the entered band minimum
80–100 %Below midpoint; this ratio alone does not identify band membership
100 %Paid at the midpoint of the band
Above 120 %Above 120% of midpoint; compare salary with the entered band maximum

Questions

What is a compa-ratio?

It measures a salary against the midpoint of its pay band, not against the bottom. One hundred percent means paid exactly at the midpoint.

Where does the midpoint come from?

This calculator takes it as the middle between the minimum and the maximum you enter. Some employers set the midpoint first and derive the edges from it — if yours does, enter the edges that belong to that midpoint.

What counts as a good compa-ratio?

That depends on the employer, and the table above shows how the bands are usually read. The midpoint is normally the rate for someone fully competent in the role, so 100 % is neither a ceiling nor a target for everyone.

How do I handle a part-time salary?

Pay bands are normally quoted full-time, so compare the full-time equivalent against the band. The calculator has no part-time factor of its own.

Sources and last check

  1. worldatwork.org

Information, not financial advice.