acalculator

What is my compa ratio?

Type the pay and the pay range (or its midpoint). The compa ratio calculator shows pay as a percent of the midpoint and how far it sits between the range minimum and maximum.

Your numbers

Compa-ratio
99.01%

Pay of $65,000.00 against a $65,652.00 midpoint is a compa-ratio of 99.01%.

As a ratio
0.99
Range penetration
48.12%
Midpoint used
$65,652.00
Pay above the midpoint
−$652.00

Compa-ratio: 99.01%. Pay of $65,000.00 against a $65,652.00 midpoint is a compa-ratio of 99.01%.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Works out the compa-ratio (pay ÷ the pay range midpoint, as a percent) and the range penetration (where pay sits between the range minimum and maximum).

Example with the default inputs (Pay $65,000.00, Range minimum $48,333.00, Range maximum $82,971.00): Pay of $65,000.00 against a $65,652.00 midpoint is a compa-ratio of 99.01%.

Method: Midpoint = the typed midpoint, or (range minimum + range maximum) ÷ 2. Compa-ratio = pay ÷ midpoint × 100. Range penetration = (pay − minimum) ÷ (maximum − minimum) × 100.

  • Pay and the range are in the same terms (yearly salary, or an hourly rate), base pay only.
  • Arithmetic is exact on the typed decimals; percents show to 2 decimals and money to the cent, halves rounded up.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Pay $65,000.00, Midpoint or market rate $70,000.00 gives Compa-ratio 92.857143%, As a ratio 0.928571, Midpoint or market rate $70,000.00, Pay above the midpoint -$5,000.00.Source: University of Wisconsin–Madison, School of Medicine and Public Health HR, Compensation Glossary of Terms (compa-ratio and position in range examples), https://kb.wisc.edu/smphhr/105906: $65,000 ÷ $70,000 = 92.857…% (the page cuts it to 92.85%)
  2. Pay $65,000.00, Range minimum $48,333.00, Range maximum $82,971.00 gives Range penetration 48.117674%, Midpoint or market rate $65,652.00, Compa-ratio 99.006885%, Pay above the midpoint -$652.00.Source: University of Wisconsin–Madison, School of Medicine and Public Health HR, Compensation Glossary of Terms (compa-ratio and position in range examples), https://kb.wisc.edu/smphhr/105906: position in range (65,000 − 48,333) ÷ (82,971 − 48,333) = 48.12%; New Mexico State Personnel Board, 1.7.1.7 NMAC, definitions I (compa-ratio) and W (midpoint), https://www.srca.nm.gov/parts/title01/01.007.0001.html (midpoint halfway)
  3. Pay $24.50, Range minimum $20.00, Range maximum $30.00 gives Compa-ratio 98%, As a ratio 0.98, Range penetration 45%, Midpoint or market rate $25.00, Pay above the midpoint -$0.50.Source: New Mexico State Personnel Board, 1.7.1.7 NMAC, definitions I (compa-ratio) and W (midpoint), https://www.srca.nm.gov/parts/title01/01.007.0001.html

How it works

  1. Midpoint used = the midpoint you type, or (range minimum + range maximum) ÷ 2 when that box is empty.
  2. Compa-ratio = pay ÷ midpoint × 100. As a ratio = pay ÷ midpoint.
  3. Range penetration = (pay − range minimum) ÷ (range maximum − range minimum) × 100, shown only when both the minimum and the maximum are typed. Pay below the minimum gives less than 0%; pay above the maximum gives more than 100%.
  4. Pay above the midpoint = pay − midpoint (below $0 when pay is under the midpoint).

Rules:

  • Pay, a typed midpoint and the range maximum must each be at least $0.01; the range minimum is $0 or more. Every amount is at most $1,000,000,000,000.
  • With both the minimum and the maximum typed, a maximum equal to or below the minimum gives no answer: "The range maximum must be more than the range minimum." This applies even when a midpoint is typed.
  • With no midpoint and not both the minimum and maximum, there is no answer: "Type the midpoint, or both the range minimum and maximum."
  • A typed midpoint is used as typed, even if it is not halfway between the minimum and maximum (a market rate, for example).
  • No answer is too large or too small to show within these limits.
  • The arithmetic is exact on the decimals you type. Percents and the ratio show to at most 2 decimals (trailing zeros dropped), money to the cent, with halves rounded up (away from zero), from the exact value.

Assumptions

  • Base pay only, in the same terms as the range (a year, or an hour).

Worked examples by hand

Pay against a market rate (UW–Madison). Pay $65,000, market rate $70,000: compa-ratio = 65,000 ÷ 70,000 × 100 = 92.86% (92.857…%; the source cuts it to 92.85%). As a ratio 0.93. Pay is −$5,000 from the midpoint.

Pay in a range (UW–Madison). Pay $65,000, range $48,333 to $82,971. Midpoint = (48,333 + 82,971) ÷ 2 = $65,652. Compa-ratio = 65,000 ÷ 65,652 × 100 = 99.01%. Range penetration = (65,000 − 48,333) ÷ (82,971 − 48,333) × 100 = 16,667 ÷ 34,638 × 100 = 48.12%. Pay is −$652 from the midpoint.

An hourly range. Pay $24.50 an hour, range $20 to $30: midpoint $25; compa-ratio = 24.50 ÷ 25 × 100 = 98% (ratio 0.98); range penetration = 4.50 ÷ 10 × 100 = 45%; −$0.50 from the midpoint.

Other questions people ask

What is a compa ratio?

The compa-ratio (comparison ratio) is pay as a percent of the midpoint of its pay range, or of a target market rate. 100% means pay at the midpoint; under 100% is below it, over 100% above it.

How do I calculate a compa ratio?

Divide the pay by the range midpoint and multiply by 100. An accountant paid $65,000 against a $70,000 market rate has a compa-ratio of 65,000 ÷ 70,000 × 100 = 92.86%.

How do I find the midpoint of a pay range?

It is halfway between the range minimum and maximum: (minimum + maximum) ÷ 2. A range of $48,333 to $82,971 has a midpoint of $65,652. Leave the midpoint box empty and the calculator works it out.

What is range penetration?

Range penetration, or position in range, shows where pay sits between the minimum and the maximum: (pay − minimum) ÷ (maximum − minimum) × 100. 0% is the minimum, 50% the midpoint of a symmetric range, 100% the maximum. $65,000 in a $48,333 to $82,971 range is at 48.12%.

What is a good compa ratio?

It depends on the employer’s pay policy. UW–Madison, for example, treats pay within 15% of the midpoint, a compa-ratio of 85% to 115%, as market competitive. People new to a job often sit below 100%; experienced, high performers above it.

Does the compa ratio include bonuses?

Usually not. It compares base pay with a base pay range. Use the same terms for both: a yearly salary with a yearly range, or an hourly rate with an hourly range.