Compa-Ratio Calculator

Calculate compa-ratio by comparing employee salary with a salary-range midpoint.

Calculate compa-ratio

Compare current base salary with the midpoint of the relevant pay range.

Employee base salary

Salary range midpoint

Compa-ratio—

Midpoint percentage—

Salary minus midpoint—

How the calculation works

Compa-ratio = employee base salary ÷ salary-range midpoint. A ratio of 1.00 means salary equals the midpoint; 0.90 means salary is 90% of midpoint; 1.10 means 110% of midpoint.

How to use the result

Use compa-ratio as one compensation diagnostic alongside job level, experience, performance, internal equity, location and market data. It can help show where salaries sit within a structured pay framework.

Assumptions and limitations

A compa-ratio is not a performance score and does not by itself determine whether pay is fair or should change. Range design and midpoint quality matter, and total compensation may differ from base salary.

Example

An 800,000 salary against a 900,000 midpoint has a compa-ratio of about 0.889, or 88.89%.

Frequently asked questions

What does a compa-ratio of 1.0 mean?

The employee's entered salary is exactly equal to the entered range midpoint.

Is a compa-ratio below 1.0 automatically underpaid?

No. Salary position can reflect experience, tenure, performance and range design; the ratio is one data point.

Should I use base salary or CTC?

Compa-ratio is commonly based on base salary against a base-salary range midpoint. Use matching pay definitions.

Can compa-ratio be above 1?

Yes. It means salary is above the midpoint, provided the midpoint and salary use the same basis.