Enter compensation inputs
Use the same pay basis for actual, minimum, midpoint, maximum, and peer values.
Example data table
| Employee | Actual Pay | Range Min | Midpoint | Range Max | Comp Ratio | Range Penetration | Interpretation |
|---|---|---|---|---|---|---|---|
| Alex Morgan | $68,000 | $58,000 | $72,000 | $86,000 | 94.44% | 35.71% | Below midpoint but within range |
| Jordan Lee | $74,500 | $60,000 | $72,000 | $88,000 | 103.47% | 51.79% | Near midpoint and balanced |
| Priya Shah | $92,000 | $66,000 | $80,000 | $95,000 | 115.00% | 89.66% | High in range and above midpoint |
Formula used
Comp Ratio (%) = (Actual Salary ÷ Midpoint Salary) × 100
Gap to Midpoint = Actual Salary − Midpoint Salary
Range Penetration (%) = ((Actual Salary − Range Minimum) ÷ (Range Maximum − Range Minimum)) × 100
Projected Salary = Actual Salary × (1 + Planned Increase % ÷ 100)
Projected Comp Ratio (%) = (Projected Salary ÷ Midpoint Salary) × 100
These formulas help HR teams assess salary competitiveness, internal alignment, and likely post-adjustment positioning within the approved salary range.
How to use this calculator
- Enter the employee name, role, and department for reference.
- Select one pay basis and keep every compensation input on that same basis.
- Fill in actual salary, midpoint, range minimum, and range maximum.
- Add peer average salary when you want a market or internal peer comparison.
- Enter a planned increase and merit budget to preview adjustment impact.
- Click the calculation button to show the result summary above the form.
- Review comp ratio, midpoint gap, range penetration, and projected comp ratio.
- Use the CSV and PDF buttons to save the output for review.
FAQs
1. What does comp ratio measure?
Comp ratio compares an employee’s current pay to the salary range midpoint. It helps HR teams understand whether pay sits below, near, or above the target market reference point.
2. What is considered a good comp ratio?
Many organizations treat values near 100% as aligned with midpoint. A suitable value still depends on tenure, performance, critical skills, geography, market pressure, and internal pay strategy.
3. Why should I enter minimum and maximum pay?
Minimum and maximum values let the calculator estimate range penetration. That shows where pay sits inside the approved band, which adds more context than midpoint comparison alone.
4. Can I use monthly or hourly pay values?
Yes. The calculator works with annual, monthly, biweekly, or hourly pay. The important rule is consistency: every salary field must use the same pay basis.
5. What does peer variance tell me?
Peer variance compares the employee’s actual pay with the peer average you provide. It helps identify internal equity differences or possible market-positioning gaps within comparable roles.
6. Why include a planned increase percentage?
A planned increase helps you preview how a merit or equity adjustment changes pay position. This is useful during budgeting, calibration meetings, and compensation planning cycles.
7. Does a high comp ratio always mean overpayment?
No. High ratios may be justified by exceptional performance, scarce skills, long tenure, retention needs, or geographic premiums. Use business context before drawing conclusions.
8. How should HR teams use the output?
Use the output as a decision-support view, not a standalone policy. Combine it with job architecture, performance data, market surveys, budget rules, and equity reviews.