Salary Band Calculator
A pay band from its midpoint and spread — the minimum, quartiles and maximum — and where a given salary sits: its range penetration, compa-ratio and the room left to the top.
Pay bands are built around a midpoint (the market rate for the job) with a spread from minimum to maximum, commonly 40–50% for professional roles and 60% or more for senior ones.
How the salary band calculator works
Pay bands are built around a midpoint (the market rate for the job) with a spread from minimum to maximum, commonly 40–50% for professional roles and 60% or more for senior ones. With the midpoint as the arithmetic middle, the minimum is 2 × midpoint ÷ (2 + spread) and the maximum is the minimum × (1 + spread). A salary’s compa-ratio is salary ÷ midpoint; its range penetration is how far it has travelled from minimum to maximum — the number that tells you whether someone has headroom.
Formula: min = 2 mid ÷ (2 + s); max = min × (1 + s); penetration = (salary − min) ÷ (max − min); compa-ratio = salary ÷ mid
Worked examples
| Inputs | Band | Note |
|---|---|---|
| Midpoint 90,000, 50% spread, salary 84,000 | 72,000 – 90,000 – 108,000 | 72,000–108,000; 33% penetration |
| Executive band: 250,000 at 80% | 178,571 – 250,000 – 321,429 | 178,571–321,429 |
| A salary above the band | 50,000 – 60,000 – 70,000 | red-circle |
FAQFrequently asked questions
What spread should a band have?
Narrow (30–40%) for roles with a defined skill ceiling, 50% for most professional roles, 60–80% for senior and executive bands where performance varies widely. Wider bands need clearer rules about how people move through them.
What is a good compa-ratio?
Around 1.0 for a fully proficient performer; 0.8–0.9 for someone new to the role; 1.1–1.2 for a sustained high performer. A team averaging well under 0.9 is a retention risk; well over 1.1 suggests the midpoint is stale.
What are green- and red-circle cases?
Green-circled employees sit below the band minimum, usually after a job re-grade, and are brought up in steps; red-circled sit above the maximum and are typically frozen until the band catches up.
How often should midpoints move?
Annually, with market survey data — typically by 2–4% a year, more when the market for a skill moves. Bands that lag the market push everyone toward the top and stall progression.
Where these figures come from
- CIPD — Employee turnover and retention factsheet — the turnover and stability index definitions used here
- Fair Work Ombudsman — the Australian workplace regulator
Last checked: September 2026. These are standard management definitions; where practice varies, the page says which convention it uses.