Calculator Inputs
Example Data Table
| Role | Grade | Midpoint | Spread | Current Salary | Policy Position | Recommended Salary |
|---|---|---|---|---|---|---|
| HR Generalist | PG-05 | $52,000 | 40% | $49,500 | 98% | $51,649 |
| Compensation Analyst | PG-07 | $65,000 | 45% | $62,000 | 100% | $72,006 |
| HR Business Partner | PG-08 | $82,000 | 50% | $79,500 | 102% | $90,367 |
| People Operations Manager | PG-10 | $105,000 | 55% | $101,000 | 105% | $117,690 |
The example shows how market midpoint, spread, policy position, and adjustment factors can change a pay recommendation.
Formula Used
Spread Decimal = Range Spread (%) ÷ 100
Minimum = Midpoint ÷ (1 + Spread Decimal ÷ 2)
Maximum = Minimum × (1 + Spread Decimal)
Effective Minimum = Minimum × FTE
Effective Midpoint = Midpoint × FTE
Effective Maximum = Maximum × FTE
Raw Recommended Salary = Effective Midpoint × Pay Policy Position × (1 + Geographic Differential) × (1 + Internal Equity Adjustment) × (1 + Performance Adjustment) × (1 + Experience Adjustment) × (1 + Merit Budget Adjustment)
Final Recommended Salary = max(Effective Minimum, min(Raw Recommended Salary, Effective Maximum))
Compa-Ratio = Salary ÷ Effective Midpoint
Range Penetration = (Salary − Effective Minimum) ÷ (Effective Maximum − Effective Minimum)
All percentage inputs are converted to decimals during calculation. The final recommendation is kept inside the selected pay band.
How to Use This Calculator
- Enter the job family and the pay grade code you want to analyze.
- Select the currency that matches your compensation structure.
- Provide the market midpoint for the role or grade.
- Enter the intended salary range spread percentage for the grade.
- Add the employee’s current salary if you want compa-ratio and movement analysis.
- Set the pay policy position to reflect lead, lag, or market-match strategy.
- Apply geographic, internal equity, performance, experience, and merit adjustments.
- Enter the FTE factor for part-time or prorated pay structures.
- Press Calculate Pay Grade to view the salary band, recommendation, penetration, and graph.
- Use the export buttons to download the result as CSV or PDF.
FAQs
1) What does a pay grade midpoint represent?
The midpoint is the market-reference pay target for a role or grade. It is often used as the anchor for building minimums, maximums, compa-ratios, and policy-based salary recommendations.
2) What is range spread in compensation planning?
Range spread describes the width of the salary band. Wider spreads allow more differentiation for performance, tenure, and job maturity, while narrower spreads create tighter pay control within a grade.
3) Why is compa-ratio important?
Compa-ratio shows how actual pay compares with the midpoint. It helps HR teams spot under-market, market-aligned, and over-market pay levels quickly and consistently.
4) Why does the calculator cap the recommendation?
A recommendation may be capped so it stays inside the selected pay band. This supports structure discipline, reduces compression risk, and keeps decisions aligned with grade governance.
5) Should I use current salary for new hires?
You can leave current salary blank for a new hire scenario. The calculator will still estimate the pay band and final recommendation using midpoint, policy position, and adjustment factors.
6) What does range penetration tell me?
Range penetration measures how far pay has moved from the band minimum toward the maximum. It helps assess career progression, maturity in role, and internal consistency within a grade.
7) How should I use geographic differential?
Use geographic differential when labor markets vary by location. It adjusts recommended pay to reflect local market pressure, purchasing power, or location-based pay strategy.
8) Can this calculator support part-time roles?
Yes. The FTE factor prorates the salary band and the recommendation. This is useful for part-time employees, reduced schedules, and other structured work arrangements.