Enter pay range data
Use the form below to calculate spread, positioning, and target structure comparisons.
Example pay structure table
| Grade | Minimum | Midpoint | Maximum | Spread % | Midpoint Progression % |
|---|---|---|---|---|---|
| P1 | $40,000 | $50,000 | $62,500 | 56.25% | — |
| P2 | $46,000 | $57,500 | $71,875 | 56.25% | 15.00% |
| P3 | $52,000 | $65,000 | $81,250 | 56.25% | 13.04% |
| P4 | $58,800 | $73,500 | $91,875 | 56.25% | 13.08% |
Core compensation formulas
((Maximum Pay - Minimum Pay) / Minimum Pay) × 100
(Current Pay / Midpoint Pay) × 100
(Current Pay / Market Reference Pay) × 100
((Current Pay - Minimum Pay) / (Maximum Pay - Minimum Pay)) × 100
((Current Grade Midpoint - Previous Grade Midpoint) / Previous Grade Midpoint) × 100
Midpoint / (1 + Target Spread ÷ 200)
Target Minimum × (1 + Target Spread ÷ 100)
The target reconstruction formulas assume the midpoint sits at the center of the designed range.
How to use this calculator
- Enter the pay grade name and your currency symbol.
- Select whether the figures are annual, monthly, or hourly.
- Fill in minimum, midpoint, maximum, and the employee’s current pay.
- Add market reference pay to compare internal pay with external positioning.
- Optionally add previous and next grade midpoints to review grade spacing.
- Enter a target spread to compare the current band with your intended design.
- Press the calculate button to display results above the form.
- Download the resulting summary as CSV or PDF for review.
Frequently asked questions
1. What does pay range spread mean?
Pay range spread is the percentage difference between a band’s maximum and minimum, divided by the minimum. It shows how wide the pay band is and helps compensation teams compare structure design across roles or grades.
2. Why is midpoint important in salary structures?
The midpoint usually represents market-aligned pay for fully proficient performance in a role. It becomes the anchor for compa-ratio, grade progression, range comparisons, and salary planning decisions.
3. What is a good compa-ratio?
A good compa-ratio depends on tenure, performance, critical skills, and pay philosophy. Many teams view values near 100% as market-aligned, but acceptable ranges vary by company and job family.
4. What does range penetration show?
Range penetration shows where current pay sits between the minimum and maximum. It helps managers understand whether an employee is early, middle, or late in the band.
5. Why compare current pay with market pay?
Comparing internal pay with market reference pay helps identify lag, lead, or match positioning. This is useful when reviewing competitiveness, retention risks, or budget priorities for salary adjustments.
6. What is midpoint progression between grades?
Midpoint progression measures how much one grade midpoint increases over the previous grade. It helps test whether career movement is visible and whether adjacent grades are meaningfully separated.
7. Why compare actual spread with a target spread?
Comparing actual spread with a target spread helps compensation teams standardize band design. It shows whether a range is wider or tighter than policy and supports cleaner structure governance.
8. Can this tool be used for hourly pay bands?
Yes. The calculator works for annual, monthly, or hourly structures as long as all inputs use the same basis. Consistency matters more than the pay period itself.