A compa-ratio is an employee's actual salary divided by the midpoint of their pay band, expressed as a percentage. A ratio of 100% means they're paid exactly at midpoint. Below 80% typically indicates underpayment risk; above 120% means they're above the band and may be a flight risk if the band doesn't adjust. The calculator shows compa-ratio for every role automatically.

Start with the midpoint for each role — typically market median pay from a salary survey (BLS, Radford, Mercer, or Levels.fyi for tech). Set a range spread of 40-60% for most roles (e.g., a $60K midpoint has a $48K min and $72K max). Wider bands make sense for senior individual contributor roles; narrower for entry-level.

Enter each employee's current salary, their band midpoint, and your proposed raise. The tool shows their new compa-ratio post-raise, flags anyone who would exceed their band maximum, and lets you model total merit budget impact across your team before finalizing any offers.

For broad market benchmarking, the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) is free and comprehensive. Levels.fyi covers tech roles well. LinkedIn Salary, Glassdoor, and Payscale are useful for spot checks. For formal compensation planning, Radford and Mercer surveys are the industry standard.