Simply divide the employee’s annual salary by the median salary for similar positions and multiply the result by 100. For example, if an employee earns $47,000 per year and the median salary …

Dec 16, 2025 · The final step is to take your reference point and your actual salary number and put them into the compa ratio formula. You are free to use a decimal or percentage for your …

Learn how to calculate compa ratio, interpret the results, and use this metric to support fair, competitive, and consistent pay decisions.

Jun 3, 2024 · A compa ratio is the formula used by professionals and organizations to evaluate compensation. It is a comparison of an employee’s compensation in relation to the midpoint of …

Aug 19, 2025 · Key takeaways A compa ratio compares a worker’s salary to the midpoint of their pay range, helping you evaluate how competitively and fairly they’re paid. Calculate a compa …

One can calculate compa-ratio to compare a subgroup’s actual salary to the average pay of a particular position. Such subgroups may include employee subgroups, units in an entire …

Mar 29, 2025 · The standard compa ratio formula is (Actual Salary ÷ Salary Range Midpoint) × 100, with most organizations targeting 80-120% depending on performance and market …

Compa-ratio measures an employee’s actual salary against the median salary for their position or similar positions at other companies. This number reveals how far an employee’s pay is from …

Dec 11, 2025 · Think of it as a fairness check that answers the following question: Are you paying above, below, or right at the market rate for a role? Compa ratio formula 💡 Compa-Ratio = …

Free online Compa Ratio Calculator to assess employee compensation by calculating the compa ratio and comparable sales percentage. Supports multiple employees, standard, step-by-step, …