Plan fair promotion increments with consistent inputs. Compare scenarios, control budgets, and reduce pay drift. Make confident recommendations with transparent calculation steps.
A sample scenario to illustrate typical outputs.
| Current salary | Band | Performance | Compa | Market | Final % | Increment | New salary |
|---|---|---|---|---|---|---|---|
| $72,000 | Next level | Exceeds | 0.92 | 2% | 12.2% | $8,784 | $80,784 |
This calculator builds a recommended increment percent from policy-driven components:
raw% = (base% × performanceMultiplier) + market% + 0.25×inflation% + compaAdj%
final% = min(max(raw%, floor%), ceiling%, budgetCap%)
increment = currentSalary × final% / 100
newSalary = currentSalary + increment
Promotion increments are easiest to explain when you separate the reward for increased scope from routine merit. This estimator frames a promotion as a structured recommendation: a target percentage, a floor and ceiling, and a final adjusted amount. By entering current salary, promotion band, and performance rating, teams can create a consistent starting point for manager conversations. The output is not an offer letter; it is a planning figure that supports budgeting, approvals, and alignment.
The model uses three levers most compensation teams already track: the role change (band), the individual's results (rating), and the market position (compa-ratio). Larger band moves typically justify higher target increments because responsibilities and impact expand. Higher ratings shift the recommendation upward to recognize outsized contribution. If a compa-ratio is low, a market adjustment can be layered to reduce range penetration risk and improve retention.
Compa-ratio is current pay divided by a midpoint for the target level. Values below 1.00 suggest an employee is paid under midpoint; values above 1.00 suggest above midpoint. In the calculator, compa-ratio influences an adjustment factor so low ratios can pull increments slightly higher while high ratios temper them. This prevents overpaying at the top of range and helps focus dollars where they close real gaps.
Guardrails keep estimates usable. A minimum increase can protect internal equity when promotions are meaningful but salaries are tight. A maximum cap can enforce policy or budget limits. The estimator also supports a total budget cap so the final number cannot exceed a preapproved spend. These controls reduce surprises and make the outputs easier to compare across employees and departments.
After you generate an estimate, review the breakdown: base increment, market adjustment, and any caps applied. Compare the new salary to the target range, verify peers in similar roles, and document the rationale for audit readiness. Use the CSV or PDF exports to share a clear summary with finance and HR partners. If exceptions are needed, keep the same framework and record why the standard inputs were overridden.
It is the recommended percentage increase for the promotion before floors, caps, and market adjustments are applied, based on band change and performance inputs.
Use the band that best matches the change in level or scope in your job architecture, such as minor, standard, or major movement between ranges.
Compa-ratio reflects position versus midpoint. Lower ratios may justify stronger increases to move pay toward market, while higher ratios may limit increases to avoid range compression.
It is an additional percentage applied when internal pay lags external market guidance. It is separate from performance and should follow your survey and policy rules.
The calculator applies floors and ceilings to keep results within policy. If a total budget cap is set, it can further reduce the final increment to stay within limits.
Yes. Enter each employee's inputs and export results. For teams, keep consistent bands and ratings definitions so comparisons remain fair and documentation is simple.
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.