Calculator inputs
Use the form below to compare your current package with a weighted market benchmark. Results appear above this form after submission.
Example data table
This sample shows how a compensation team might compare one role against several market references before setting a parity target.
| Role Group | Base Salary | Bonus | Equity | Hours/Week | COL Index | Experience | Total Compensation |
|---|---|---|---|---|---|---|---|
| Your Current Package | $78,000 | $6,000 | $4,000 | 40 | 105 | 6 years | $88,000 |
| Peer Median Package | $86,000 | $8,000 | $5,000 | 40 | 110 | 7 years | $99,000 |
| Peer Average Package | $90,000 | $8,500 | $5,500 | 41 | 110 | 7 years | $104,000 |
| Market Benchmark Package | $94,000 | $9,000 | $6,000 | 40 | 112 | 7 years | $109,000 |
Formula used
((Median × Median Weight) + (Average × Average Weight) + (Market × Market Weight)) ÷ Total Weights
Total Compensation = Base Salary + Bonus + Annualized Equity
Hourly Compensation = Total Compensation ÷ (Hours per Week × Weeks per Year)
COL Adjusted Hourly = Hourly Compensation ÷ (COL Index ÷ 100)
Experience Adjusted Benchmark = Benchmark COL Adjusted Hourly × (Current Experience ÷ Benchmark Experience)Experience Weight
Target Hourly Parity = Experience Adjusted Benchmark × Performance Factor
Recommended Total Compensation = Target Hourly Parity × Current Annual Hours × (Current COL Index ÷ 100)
Parity Ratio = Current COL Adjusted Hourly ÷ Target Hourly Parity
How to use this calculator
- Enter your current base salary, bonus, equity, weekly hours, cost of living index, and experience years.
- Enter peer median, peer average, and market benchmark base salaries for the same role level.
- Add benchmark bonus, equity, hours, cost of living index, and experience values for the comparator group.
- Set benchmark weights to reflect how much confidence you place in median, average, and market sources.
- Adjust the performance factor if your contribution should reasonably shift compensation above or below the benchmark.
- Choose an experience weight to control how strongly experience differences affect the benchmark target.
- Press Calculate Pay Parity to display results above the form.
- Review the parity index, target compensation, gap, and fair range before using the output in negotiation or planning discussions.
Frequently asked questions
1. What does pay parity mean?
Pay parity compares your compensation with a relevant benchmark after adjusting for workload, geography, experience, and incentives. It helps show whether differences look justified or worth discussing.
2. Why include bonus and equity?
Two jobs can share similar salaries but differ sharply in total rewards. Adding bonus and equity makes the comparison more realistic, especially for managerial, technical, and startup roles.
3. Is market pay alone enough?
Not always. Market figures often ignore local living costs, role scope, time demands, and experience differences. A better model blends several benchmarks instead of relying on one headline number.
4. Why adjust for hours worked?
A role paying more annually may still pay less per hour if the workload is heavier. Hourly normalization helps compare fairness when schedules differ across employers or regions.
5. How does the cost of living index help?
It converts compensation into a location-adjusted view. This matters when two employees earn different nominal pay but face very different housing, transport, and daily living costs.
6. Should I compare base pay or total compensation?
Use both. Base pay matters for cash flow and future raises, while total compensation better captures the full package. This calculator reports both so you can prepare a more balanced discussion.
7. What parity ratio is usually acceptable?
A ratio near 1.00 suggests alignment with the modelled target. Many teams accept a small band around parity, which is why this tool lets you set a tolerance percentage.
8. Can this replace formal compensation review tools?
No. It is a planning and negotiation aid. Final decisions should still consider internal leveling, job architecture, budget limits, legal rules, and verified compensation data sources.