Compa Ratio Calculator

Calculate the compa ratio to assess employee compensation relative to the industry midpoint and compute comparable sales percentage to evaluate business performance. Enter salaries, midpoints, and sales data, then view results in standard, step-by-step, or chart views.

Compa Ratio Inputs

$
$

Comparable Sales Inputs

$
$
Standard
Step by Step
Chart

Result

Calculation Steps

Compensation and Sales Comparison

Formulas

Compa Ratio

Compa Ratio is calculated as:

Compa Ratio (Decimal) = Actual Salary ÷ Salary Midpoint
Compa Ratio (Percentage) = (Actual Salary ÷ Salary Midpoint) × 100

Where:

  • Actual Salary: The employee’s current salary.
  • Salary Midpoint: The industry median salary for the position.

Comparable Sales Percentage

Comparable sales percentage is calculated as:

Comp Sales (%) = [(Current Year Sales – Previous Year Sales) ÷ Previous Year Sales] × 100

Where:

  • Current Year Sales: Sales for the current year (e.g., 2021).
  • Previous Year Sales: Sales for the previous year (e.g., 2020).

Usage Notes:

  • All inputs must be positive numbers.
  • Compa ratio typically ranges from 80% to 120% for balanced compensation.
  • Results are rounded to two decimal places.

How to Use the Calculator

  1. Add Employees: Click “Add Employee” to input multiple employees for compa ratio calculations.
  2. Enter Salaries: Input actual salary and salary midpoint for each employee.
  3. Enter Sales Data: Input sales figures for the previous and current years for comp sales calculation (optional).
  4. Choose Display: Select standard, step-by-step, or chart view.
  5. Calculate: Click “Calculate” to process inputs.
  6. View Results: Review compa ratios, comp sales percentage, and visualizations.
  7. Reset: Click “Reset” to clear fields.

Frequently Asked Questions (FAQs)

What is a Compa Ratio?

The compa ratio compares an employee’s salary to the midpoint of the industry salary range for their role, indicating how competitive their compensation is.

What is a good Compa Ratio?

A compa ratio between 80% and 120% is typically ideal, balancing competitiveness and performance. Ratios below 80% or above 120% may impact morale.

What is Comparable Sales Percentage?

It measures sales growth or decline between two years, helping businesses assess performance trends.

Why use Compa Ratios?

They help employers ensure fair compensation and help employees understand their pay relative to market standards.

What if inputs are invalid?

The calculator will highlight invalid fields and display error messages to guide corrections.