Salary Benchmarking Calculator

Most compensation programs treat 90%–110% as a normal, on-target range, with 100% meaning the employee is paid exactly at the market median for the role. A compa-ratio below 90% is commonly used as a threshold for reviewing potential pay-equity or retention risk, while a ratio well above 110% suggests the employee is being paid well above typical market rates for their level.

Compa-ratio only compares Current Salary to the single median (P50) figure, so two employees with the same compa-ratio can actually sit at different points in the real distribution if the market's P25–P75 spread is unusually wide or narrow. Estimated Percentile interpolates across all four percentile points you enter, giving a more precise read of where the salary actually falls within the market's range.

Set it to 100 if the salary and market data are already in the same local market, since that leaves COL-Adjusted Salary unchanged. If you're comparing a local salary against a national benchmark, enter the local cost-of-living index relative to the national average (over 100 for expensive metros, under 100 for lower-cost areas) so the comparison isn't distorted by regional cost differences alone.

Gap to Median is Market 50th Percentile minus Current Salary, so a negative value means the employee's Current Salary already exceeds the market median — there is no gap to close, and the employee is paid above the midpoint of the comparable market range for the role.

Not necessarily — compa-ratio only reflects the market data you enter, so it's only as accurate as the comparable-role percentiles used. A newer employee still progressing through a pay range, or a role benchmarked against the wrong comparable job, can show a low compa-ratio without being a genuine pay-equity problem, so it's best used as a starting point for review rather than a final verdict.