Calculator
Compa Ratio Calculator
Compa ratio shows how an employee's pay compares to a market reference pay. It's a fast way to check pay alignment, internal equity, and where someone sits in a range.
Inputs
Currency
Auto-detected from your location. You can change the country if needed.
Market reference pay is the middle of your range: (min + max) ÷ 2
Computed market reference pay: —
Benchmark (optional)
Prefill rangeUse our salary dataset to estimate a market reference pay for your country and role. Then we suggest a practical range around it.
Estimated market reference pay (benchmark)
—
Suggested range: — – — (±15% around the market reference pay)
Result
Compa ratio
Near reference95%
Formula
salary ÷ market reference pay
Range position
Where salary sits between min and max (not the same as compa ratio).
Position: 33%
Slightly below reference
Pay sits below market reference pay but within a typical band. Consider performance, tenure, and internal equity when planning adjustments.
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Compa Ratio Calculator
A compa ratio shows how an employee's pay compares to a market reference salary. Use this Compa Ratio Calculator to quickly check pay alignment, internal equity, and where someone sits within a salary range — with clear, actionable insights for HR and founders.
What is a Compa Ratio?
A Compa Ratio (short for comparison ratio) is a compensation metric used by HR teams to compare an employee's salary against a market reference pay.
It helps answer simple but important questions:
- Is this employee paid fairly?
- Are they below, at, or above market?
- Do we need to adjust pay during increments or promotions?
How to read a compa ratio
- 100% → Salary matches the market reference
- Below 100% → Salary is below market
- Above 100% → Salary is above market
In short, it shows whether pay is aligned with the role and market expectations.
How the SkillSauce Compa Ratio Calculator Works
SkillSauce goes beyond basic compa ratio tools. You can calculate compa ratio even if you don't have full market data.
Step 1: Enter salary details
Add the employee's current salary and choose your country and currency. Currency is auto-detected but can be changed anytime.
Step 2: Choose what information you have
You can calculate compa ratio in two ways:
- I know the pay range — Enter the minimum and maximum salary for the role. SkillSauce automatically calculates the market reference pay as the midpoint.
- I only know the market reference pay — Enter a single benchmark number and calculate instantly.
Step 3: (Optional) Use salary benchmarks
Select a role and experience band to estimate market reference pay using SkillSauce salary data. You can apply these benchmark values with one click.
Step 4: Get instant results
You'll see:
- Compa Ratio (%)
- Range Position (%)
- A clear explanation of what the result means and what to do next
Compa Ratio Formula
The compa ratio is calculated using a simple formula:
Compa Ratio = (Employee Salary ÷ Market Reference Pay) × 100
If you enter a pay range, SkillSauce calculates the market reference pay as:
Market Reference Pay = (Range Min + Range Max) ÷ 2
No manual math required.
How to Interpret Your Compa Ratio Result
Your result isn't just a number — SkillSauce explains it in context.
Below 90%
Pay is well below market. This may indicate:
- Retention risk
- Pay inequity
- Need for correction during the next cycle
90% – 100%
Pay is close to market. This is common for:
- Growing employees
- Early-mid tenure roles
100%
Pay is aligned with the market reference. This is usually the target zone for stable roles.
Above 110%
Pay is above market. This may be justified for:
- High performers
- Critical roles
- Long tenure employees
But it should be reviewed for internal equity.
What Is Range Position (and Why It Matters)?
Range position shows where the salary falls between the minimum and maximum of the pay range.
This is different from compa ratio.
- Compa ratio compares salary to the market reference
- Range position shows how close the salary is to the top or bottom of the band
Using both together helps HR teams:
- Plan promotions
- Avoid pay compression
- Balance fairness across teams
Why Use SkillSauce's Compa Ratio Calculator?
Unlike basic calculators, SkillSauce is built for real HR decisions.
- Works with ranges or single benchmarks
- Auto-computes market reference pay
- Shows compa ratio + range position
- Country-aware currency support
- Role-based benchmark suggestions
- Clear, human explanations (not just numbers)
- Export results as PDF for reviews and audits
This makes it ideal for:
- HR teams
- Founders and startup leaders
- Compensation and rewards planning
When Should You Use a Compa Ratio?
Use a compa ratio when you're:
- Reviewing salaries
- Planning increments
- Managing promotions
- Checking pay equity
- Creating or adjusting salary bands
- Benchmarking new hires
It's one of the simplest ways to bring structure to compensation decisions.
Frequently Asked Questions
Find answers to common questions about the Compa Ratio Calculator.
Still have questions?
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