Compa-Ratio Calculator
Where a salary sits against its pay band — the compa-ratio to the midpoint, the range penetration from bottom to top, what it would take to reach the midpoint, and a reading of what the position usually means.
Pay bands have a minimum, a midpoint and a maximum, and two numbers locate a salary inside one.
How the compa-ratio calculator works
Pay bands have a minimum, a midpoint and a maximum, and two numbers locate a salary inside one. The compa-ratio is salary over midpoint: 1.0 is the market rate the band was built around, 0.8 is the usual floor for a new starter, 1.2 the usual ceiling. Range penetration is how far up the band the salary is, from 0% at the minimum to 100% at the maximum — the number that says how much room is left for raises.
Formula: compa-ratio = salary / midpoint; range penetration = (salary − min) / (max − min)
Worked examples
| Inputs | Compa-ratio | Note |
|---|---|---|
| Just below the midpoint | 0.9263 | compa-ratio 0.93 |
| A new starter | 0.8105 | near the floor |
| Topped out | 1.2 | no room left |
FAQFrequently asked questions
What is a compa-ratio?
Salary divided by the band midpoint. It compares a person's pay with the market rate the band was built around: 1.0 is at market, below is under, above is over.
What is range penetration?
How far up the band a salary sits, from 0% at the minimum to 100% at the maximum. It shows how much headroom remains for increases before a promotion is needed.
What is a normal compa-ratio?
Between 0.8 and 1.2 — the band's usual floor and ceiling. New starters begin near 0.8 and move toward 1.0 as they become fully competent; strong performers reach 1.1 to 1.2.
What happens above 1.2?
The employee is above the band's ceiling — usually red-circled (frozen until the band catches up) or promoted into the next band.
How wide should a band be?
Forty to sixty per cent from minimum to maximum for professional roles, narrower for entry-level, wider for senior. The band-width row shows yours.
Where these figures come from
- CIPD — Employee turnover and retention factsheet — the turnover and stability index definitions used here
- US Department of Labor — the federal labour department
Last checked: September 2026. These are standard management definitions; where practice varies, the page says which convention it uses.