Calculator Inputs
Example Data Table
| Employee | Base Pay | Midpoint | Compa Ratio | Range Position | Status |
|---|---|---|---|---|---|
| A | $62,000 | $75,000 | 82.7% | 6.7% | Within range |
| B | $74,500 | $75,000 | 99.3% | 48.3% | Within range |
| C | $82,500 | $75,000 | 110.0% | 75.0% | Within range |
| D | $91,000 | $75,000 | 121.3% | 103.3% | Above range |
Formula Used
- Annualized Base Pay = convert pay frequency to annual amount.
- Base Compa Ratio (%) = (Annualized Base Pay ÷ Midpoint) × 100.
- Total Cash = Annualized Base Pay + Bonus + Allowances.
- Total Cash Compa (%) = (Total Cash ÷ Midpoint) × 100.
- Range Penetration (%) = ((Base Pay − Range Min) ÷ (Range Max − Range Min)) × 100.
- FTE-Adjusted Base Pay = Annualized Base Pay ÷ (FTE% ÷ 100).
- Target Pay = Midpoint × (Target Compa% ÷ 100).
- Adjustment to Target = Target Pay − Annualized Base Pay.
How to Use
- Choose currency, rounding, and pay frequency.
- Enter base pay and FTE percent.
- Enter the annual midpoint for the role or grade.
- Optionally enter range min, range max, and benchmark.
- Add bonus or allowances to compare total cash.
- Set a target compa ratio to estimate adjustments.
- Model a raise using percent or annual amount.
- Press calculate and review results above.
Compa ratio as an internal pay signal
The internal compa ratio compares an employee’s annualized base pay to the approved midpoint for the role, grade, and location. A value of 100% indicates pay equals midpoint, while 90% shows pay is 10% below midpoint. Many teams track compa alongside performance and tenure to spot compression, progression gaps, and leveling drift. In pay reviews, compa distributions are commonly summarized by percentile to separate broad patterns from individual outliers. Tracking the median compa by grade helps confirm your structure still matches internal career paths.
Annualization and FTE normalization
This tool converts hourly, weekly, biweekly, monthly, or annual inputs into a consistent annual base pay. It also calculates a full‑time equivalent value by dividing annual pay by the FTE factor. For example, a 0.8 FTE employee earning 60,000 annualized equates to 75,000 at 100% FTE, improving comparisons across part‑time roles. Annualization assumptions should match payroll practice, so hourly staff should use actual weeks worked if unpaid leave is frequent.
Range status and penetration insights
When minimum and maximum are provided, the calculator classifies pay as below range, within range, or above range. Range penetration shows how far pay sits between min and max. A penetration of 50% means the employee is centered in the band, while values above 100% highlight out‑of‑range pay that may require policy review. When penetration is near zero, managers may focus on skill acquisition plans rather than immediate pay movement.
Total cash view for incentive roles
For roles with bonuses or allowances, comparing total cash to midpoint can explain differences that base pay alone cannot. The tool supports bonus percent or fixed bonus amount, plus annual allowances, then reports a total cash compa ratio. This is useful for sales, shift, and project roles where variable pay is meaningful. Always document eligibility rules and proration.
Targeting and scenario modeling
Comp teams often set target compa ratios for progression, such as 95% for new hires and 105% for advanced proficiency. The target adjustment estimates the annual change required to reach a chosen target. A raise scenario then recalculates compa after a percent or fixed increase, helping plan equity, merit, and budget conversations.
FAQs
What is a compa ratio?
Compa ratio is base pay divided by the role’s midpoint, expressed as a percent. It helps compare pay across employees in the same structure and highlights below‑target or above‑target positioning.
Which midpoint should I use?
Use the approved midpoint for the employee’s job level, location, and pay basis. If you have multiple structures, select the one tied to the employee’s grade and country or city policy.
Should I compare base pay or total cash?
Use base pay for structural alignment and progression decisions. Use total cash when incentives or allowances are a planned part of compensation and you want to compare expected cash value to the same midpoint.
How does FTE affect the results?
The tool annualizes pay, then calculates an FTE‑adjusted value for fair comparisons. A part‑time employee can look lower on base pay but align well when normalized to 100% FTE.
What does range penetration mean?
Range penetration shows where pay sits between range minimum and maximum. It is useful for spotting early‑career positioning, maturity in role, and cases where pay is near the top of the band.
How should I use the target adjustment?
Target adjustment estimates the annual change needed to reach a chosen target ratio. Use it for planning equity and merit budgets, then validate against policy limits, performance, and required approvals.