Calculator
Example data table
Use these sample rows to understand typical inputs and outputs. Values are illustrative and may not reflect your organization’s policy.
| Employee | Current base | Promotion size | Rating | Band mid | Market mid | Target new base | Effective % |
|---|---|---|---|---|---|---|---|
| Ayesha (HRBP) | $72,000 | Standard | Meets | $78,000 | $80,000 | $82,200 | 14.17% |
| Omar (People Analyst) | $88,000 | Minor | Exceeds | $92,000 | $95,000 | $97,680 | 11.00% |
| Fatima (Recruiter) | $64,000 | Standard | Outstanding | $75,000 | $78,000 | $77,440 | 21.00% |
| Bilal (HR Ops) | $55,000 | Minor | Meets | $62,000 | $61,000 | $60,500 | 10.00% |
| Sara (Total Rewards) | $108,000 | Major | Exceeds | $110,000 | $112,000 | $128,520 | 19.00% |
Formula used
- Compa Ratio = Current Base ÷ Band Midpoint
- Market Gap % = (Market Midpoint − Current Base) ÷ Market Midpoint × 100
- Total Increase % = Merit % + Promo % + Adjustments (pp) + Location %
- New Base (raw) = Current Base × (1 + Total Increase % ÷ 100)
- New Base (capped) = min(max(New Base (raw), Band Min), Band Max)
- Annual Bonus = New Base × Bonus Target %
- Cash Total = Base + Bonus + Allowances + One-time Bonus
- Total Reward = Cash Total + Current Equity + Equity Refresh
How to use this calculator
- Enter the employee’s current base and bonus target percentage.
- Add band minimum, midpoint, and maximum for the new level.
- Optionally add market midpoint and location differential.
- Select promotion size and performance rating to generate scenarios.
- Use overrides when policy requires fixed promo or merit values.
- Review the target scenario, then compare low and high outcomes.
- Download CSV or PDF to share the outcome and rationale.
Band-based promotion math
A solid promotion recommendation starts with the new level’s band: minimum, midpoint, and maximum. This calculator uses those anchors to estimate a target base and to flag band compression. It also calculates compa ratio as current base divided by band midpoint, and band position as (base−min)/(max−min). For example, moving from 78,000 to a band with a 90,000 midpoint suggests a midpoint gap of 12,000. If policy targets 60% of that gap, the modeled increase is 7,200, bringing base to 85,200 while staying under the band maximum.
Percent increase versus fixed amount
Organizations often define promotions as a percent range, a fixed currency amount, or a hybrid. A 10% increase on 65,000 yields 71,500, while a fixed 6,000 yields 71,000. The tool lets you compare both modes side by side, then apply overrides when a collective agreement, offer letter, or salary grid mandates a specific number. When bonus targets differ by level, the calculator updates annual bonus and cash total automatically.
Market and location alignment
To avoid overpaying in one market and underpaying in another, the calculator can apply a market midpoint and a location differential. If the market midpoint for the role is 88,000 and the location factor is +5%, the adjusted reference becomes 92,400. That reference can shift the target scenario upward, especially when the current compa ratio is below 0.90. Use this to test whether the move closes a market gap without exceeding the band maximum.
Performance-driven differentiation
Promotion increases are frequently differentiated by performance to reward impact and sustain retention. The calculator models a low, target, and high scenario using promotion size and rating. For instance, a “Strong” rating can add a small placement nudge, while an “Exceptional” rating may justify the high scenario, provided the new base remains within band and pay equity guidelines, with clear guardrails.
Documenting a defensible recommendation
HR and People Ops teams need consistent, explainable decisions. The scenario table summarizes base, bonus, allowances, and total reward, plus indicators like “Band capped” and midpoint progress. Exporting CSV supports audit trails, and the PDF summary helps managers communicate decisions with a clear rationale and the key assumptions captured on one page.
FAQs
1) What information should I gather before calculating?
You’ll get the best output with current base pay, bonus target, and the new level’s band min/mid/max. Add market midpoint and location differential if your company uses geographic pay zones.
2) How does the calculator decide a “target” increase?
The target scenario blends promotion size, performance rating, and midpoint gap progress, then checks the result against band limits. It’s designed to be explainable, not to replace your policy or approvals.
3) What happens if the recommended pay exceeds the band maximum?
The tool caps the new base at the band maximum and flags the scenario as band capped. This helps you consider alternatives like a one-time bonus, equity refresh, or a later adjustment cycle.
4) Can I model a fixed promotion amount instead of a percentage?
Yes. Switch the increase mode to Fixed Amount and enter the value. The scenario table will recompute base, bonus, and total cash so you can compare fixed versus percent outcomes.
5) What is compa ratio and why does it matter?
Compa ratio is base pay divided by the band midpoint. Values below 1.00 indicate pay under midpoint; values above 1.00 indicate pay over midpoint. It’s a quick signal for placement and internal consistency.
6) Do the CSV and PDF exports send data to a server?
No. Exports are generated in your browser from the calculated results, so the file is downloaded locally. If you need recordkeeping, attach exports to your HR case or compensation worksheet.