# What is my compa ratio?

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).

- Page: https://www.acalculator.org/finance/compa-ratio-calculator
- JSON spec: https://www.acalculator.org/finance/compa-ratio-calculator.json
- Version: 227e66fbcf99

## Default answer

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%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| pay | Pay | The employee’s salary or pay rate, in the same terms as the range (a year, or an hour). |
| min | Range minimum | The lowest pay of the range or grade. Optional with a midpoint. |
| max | Range maximum | The highest pay of the range or grade. Optional with a midpoint. |
| mid | Midpoint or market rate | The range midpoint or target market rate. Optional: empty is halfway between the minimum and maximum. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| compa | Compa-ratio | Pay ÷ midpoint × 100. |
| ratio | As a ratio | Pay ÷ midpoint, where 1.00 is pay at the midpoint. |
| penetration | Range penetration | (Pay − minimum) ÷ (maximum − minimum) × 100: 0% at the minimum, 100% at the maximum. Shown when both are typed. |
| midpoint | Midpoint used | The typed midpoint, or (minimum + maximum) ÷ 2. |
| gap | Pay above the midpoint | Pay − midpoint; below 0 when pay is under the midpoint. |

## Method

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

## Assumptions

- 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.

## Worked examples

1. pay = $65,000.00, mid = $70,000.00 gives compa = 92.857143%, ratio = 0.928571, mid = $70,000.00, gap = -$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, min = $48,333.00, max = $82,971.00 gives penetration = 48.117674%, mid = $65,652.00, compa = 99.006885%, gap = -$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, min = $20.00, max = $30.00 gives compa = 98%, ratio = 0.98, penetration = 45%, mid = $25.00, gap = -$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.

## FAQ

### 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.

## Sources

- University of Wisconsin–Madison, School of Medicine and Public Health HR, Compensation Glossary of Terms (updated 2025-09-02): compa-ratio = pay rate ÷ market rate, with the $65,000 ÷ $70,000 example; position in range = (pay − range minimum) ÷ (range maximum − range minimum), with the $48,333 to $82,971 example (48.12%); a market competitive range of 85% to 115% compa-ratio. https://kb.wisc.edu/smphhr/105906 (retrieved 2026-10-19)
- New Mexico State Personnel Board, 1.7.1.7 NMAC, definitions: compa-ratio is pay as a percent of the midpoint of a pay band; the midpoint is midway between the minimum and maximum and is a compa-ratio of 100%. https://www.srca.nm.gov/parts/title01/01.007.0001.html (retrieved 2026-10-19)
- University of Colorado Boulder, Human Resources, Glossary of Compensation Terms: compa-ratio = pay rate ÷ grade midpoint; position in range (range penetration). https://www.colorado.edu/hr/compensation/compensation-strategy/glossary-compensation-terms (retrieved 2026-10-19)