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Compensation Band and Compa-Ratio Calculator

Human Resources · Free tool

Compensation Band and Compa-Ratio Calculator

Before an offer goes out, HR and hiring managers need to know where it lands in the pay band for that role. This compensation band calculator places an offer against the minimum, midpoint and maximum, and shows its compa-ratio and range position, for HR, compensation analysts and managers approving pay.

Your entries stay in this browser. Use Fill example to see a finished page first.

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What this HR tool gives you

The result states where the offer sits in words, such as "At the midpoint", then gives the compa-ratio, range position and a table of the band and the offer. Attach it to an offer approval or a pay review. The band you enter is stored locally and never shared; sign-up is not required.

What you enter

  • Minimum: the bottom of the pay band
  • Midpoint: the middle or market-reference point of the band
  • Maximum: the top of the pay band
  • Offer: the salary you want to place in the band (all in USD, EUR or GBP)

Worked example

The example band runs from $70,000 to $110,000 with a $90,000 midpoint, and the offer is $90,000. The offer sits at the midpoint, the compa-ratio is 90,000 ÷ 90,000 = 1, and the range position is (90,000 − 70,000) ÷ (110,000 − 70,000) = 50.0%.

How are compa-ratio and range position calculated?

Compa-ratio = offer ÷ midpoint. Range position = (offer − minimum) ÷ (maximum − minimum) × 100, shown as a percent. Both are rounded to two decimals. If the maximum equals the minimum, range position is shown as a dash.

The tool also describes where the offer sits: below the minimum, between the minimum and the midpoint, at the midpoint, between the midpoint and the maximum, at the maximum, or above the maximum. The band must run minimum, then midpoint, then maximum, and no value can be negative. The page notes this is not a pay decision.

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Tips before you use the result

  1. A compa-ratio below 1 means the offer is below the midpoint; above 1 means above it.
  2. Range position is useful when the midpoint is not exactly halfway between minimum and maximum.
  3. Check existing team members in the same band before finalizing, so a new hire does not land above peers without reason.
  4. An offer outside the band usually needs a documented reason and a second approval.

Frequently asked questions

What is a compa-ratio?

Compa-ratio compares a salary with the midpoint of its pay band: salary divided by midpoint. A compa-ratio of 1 means the salary equals the midpoint; 0.9 means it is 10% below; 1.1 means 10% above. This calculator shows it to two decimals.

What is range position in a pay band?

Range position shows how far through the band a salary sits, from 0% at the minimum to 100% at the maximum. It is calculated as (salary − minimum) ÷ (maximum − minimum). Values below 0% or above 100% mean the salary is outside the band.

What if the offer is outside the band?

The tool still calculates the compa-ratio and range position and labels the offer "Below the minimum" or "Above the maximum". It does not block the offer or suggest an amount. Use the label as a prompt for a documented review, and remember the page states this is not a pay decision.

Why do I get a warning about my band?

The minimum must not be higher than the midpoint, and the midpoint must not be higher than the maximum. If they are out of order, the tool asks you to fix the band before calculating. Also check that all four values are in the same currency and pay period.

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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: October 2026 · Kurums editorial team.