Calculate compa ratio across any role and grade. See range position, target gaps, and impacts. Export results, support reviews, and align pay decisions confidently.
Sample employees show how compa ratio aligns pay to a midpoint. Values are illustrative and not industry-specific benchmarks.
| Employee | Annual Salary | Midpoint | Compa (%) | Category |
|---|---|---|---|---|
| Employee A | USD 48,000.00 | USD 60,000.00 | 80.00% | Below midpoint |
| Employee B | USD 63,000.00 | USD 60,000.00 | 105.00% | Around midpoint |
| Employee C | USD 78,000.00 | USD 60,000.00 | 130.00% | High above midpoint |
Compa ratio compares an employee’s annualized pay to the job’s midpoint. A ratio of 1.00 equals 100% of midpoint. Many organizations treat 95%–105% as broadly aligned for fully proficient employees, while 80%–90% often indicates early career placement or a lagging market adjustment. Ratios above 110% can signal expanded scope, scarce skills, or range design issues. during annual merit and promotions.
Midpoints are usually anchored to salary survey data and internal leveling. If a midpoint is USD 60,000 and salary is USD 48,000, compa equals 0.80, highlighting a potential retention risk when peers cluster near 0.95. Keeping midpoint definitions consistent by geography and job family reduces noise and makes year over year movement easier to explain to leaders.
When minimum and maximum are available, range penetration shows where pay sits inside the band. Penetration below 0% means pay is under minimum, often requiring corrective action. Penetration above 100% suggests pay exceeds the maximum and may trigger red circle rules. A healthy distribution commonly concentrates between 30% and 70% for steady state roles.
The tool converts a target compa into a target salary and calculates the gap. For example, moving from USD 52,000 to a 100% target on a USD 60,000 midpoint requires USD 8,000 annually. If a team has 15 similar gaps averaging USD 4,200, the annual budget impact is roughly USD 63,000 before employer taxes and benefit load.
Planned increases help test outcomes before approvals. A 3% merit on USD 58,200 becomes USD 59,946 and raises compa against a USD 60,000 midpoint from 97.0% to 99.9%. Scenario checks are useful during promotion cycles, when compa may jump quickly, and during compression reviews, when tenured staff may trail newer hires.
Compa ratio is strongest when paired with governance. Review distributions by level, function, tenure, and location, then flag outliers such as below 85% or above 120%. Combine compa with performance and internal equity comparisons to avoid over correcting. Exported CSV and PDF outputs support audit trails, compensation committee packets, and consistent manager communication.
It means the employee’s annualized pay equals the range midpoint. Many programs treat this as a solid reference point for fully proficient performance in the role.
Yes. Select hourly frequency and enter hours per week. The tool annualizes pay using hours/week × 52, then calculates compa and related metrics consistently.
No. Midpoint is required for compa ratio. Minimum and maximum are optional and only used for range penetration and range spread calculations.
Use your compensation policy and level guidelines. Common targets are near 95%–105%, adjusted for experience, performance, internal equity, and hiring constraints.
If salary falls below the annualized minimum, penetration can be negative. If salary exceeds the annualized maximum, penetration can exceed 100%, indicating out-of-range placement.
CSV supports analysis, filtering, and audit trails. PDF provides a shareable summary for managers and review committees, keeping calculations consistent across scenarios.
Up to 25 recent entries are stored locally in this session.
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.