Align pay to market midpoints with confidence today. See compa ratio, penetration, and adjustment guidance. Built for HR teams managing roles, grades, and ranges.
| Role | Grade | Base Pay | Midpoint | Compa Ratio | Status |
|---|---|---|---|---|---|
| HR Generalist | G4 | 72,000 | 80,000 | 0.90 | Developing |
| Recruiter | G5 | 88,000 | 85,000 | 1.04 | Competitive |
| Compensation Analyst | G6 | 102,000 | 95,000 | 1.07 | Competitive |
| HRBP | G7 | 120,000 | 110,000 | 1.09 | Competitive |
| People Ops Lead | G8 | 145,000 | 120,000 | 1.21 | Above Market |
Compa ratio links individual pay to a defined midpoint, helping teams compare employees in the same grade using one consistent reference. A ratio of 1.00 equals the midpoint; 0.90 means pay is 10% below midpoint; 1.10 is 10% above. With annualization, hourly and monthly inputs normalize to one annual figure, reducing errors during merit cycles and audits.
Many organizations apply practical bands to speed review discussions. A common structure is: below 0.80 as below market, 0.80–0.89 developing, 0.90–1.10 competitive, 1.11–1.20 experienced, and above 1.20 above market. These bands align with typical pay-range mechanics and help leaders flag outliers for deeper context, such as scarce skills or critical retention risk.
The midpoint gap quantifies how far pay is from the reference point in currency and percent. Example: pay used 72,000 and midpoint 80,000 produces a gap of 8,000 and a compa ratio of 0.90. If your target ratio is 1.00, the recommended increase is 8,000; if the target is 0.95, the increase becomes 4,000. This turns calibration meetings into concrete funding conversations.
When range minimum and maximum are available, penetration shows how far an employee has moved through the salary range: (pay − min) ÷ (max − min) × 100. If min is 70,000, max is 110,000, and pay used is 90,000, penetration is 50%. Pair penetration with performance and tenure to guide promotions, lateral moves, and skill-based pay adjustments without drifting outside the structure.
Use base pay for most market comparisons, then switch to total cash when incentive policy is part of your benchmark approach. Track decimals consistently for reporting, and export results to share with finance partners. Document any exceptions where ratios exceed 1.20 or fall below 0.80, and require a manager rationale plus HR approval to protect internal equity and maintain defensible compensation decisions. Keep notes for audits and future pay cycles.
It is pay used divided by the salary midpoint. A value of 1.00 equals the midpoint, below 1.00 is below midpoint, and above 1.00 is above midpoint.
Use total cash when your compensation policy benchmarks incentives and allowances with market data. For most structures, base pay against midpoint is the standard for consistent internal equity comparisons.
No. The calculator annualizes pay and benchmark values first. You can enter monthly or hourly amounts, then compare them to an annual midpoint without manual conversion.
Many teams treat 0.90 to 1.10 as broadly competitive for established roles. Your ranges can differ by grade, geography, and scarcity, so align thresholds with your pay philosophy and governance rules.
Range penetration shows how far pay sits between the range minimum and maximum. It helps track progression within a grade and supports decisions on promotions, lateral moves, and time-in-role adjustments.
It can signal premium skills, market pressure, or a structure mismatch. Review job level, performance, and range design. If it is an exception, document the rationale and confirm approvals to protect equity.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.