About the Salary Range Calculator
This salary range calculator builds a full salary structure from three design choices: the midpoint of your lowest grade, the range spread (how far the maximum sits above the minimum) and the midpoint progression (how much each grade’s midpoint rises over the one below). It returns the minimum, midpoint and maximum for every grade, the overlap between neighbouring ranges, and where a given salary falls in a chosen grade.
It is meant for HR and reward teams designing or refreshing pay bands, founders putting a first salary structure in place, and managers checking whether an offer sits sensibly inside its range. Change the spread or progression and the whole structure updates, so you can test a tighter or wider design before committing.
The calculator uses the conventional definitions used in compensation practice: range spread is measured from the minimum ((max − min) ÷ min), the midpoint sits halfway between minimum and maximum, and compa-ratio is salary ÷ midpoint. It does not set market rates — anchor the base midpoint to salary survey data for the jobs in that grade.
With the default inputs, the midpoint of selected grade is $62,720. Change any value above to recalculate instantly.
How to use the salary range calculator
- 1Enter the midpoint for your lowest grade, ideally based on market data for jobs in that grade.
- 2Choose the range spread — common designs use roughly 30–50% for entry and professional grades and wider spreads for senior roles.
- 3Set the midpoint progression between grades and how many grades you need.
- 4Pick a grade to inspect and, optionally, a salary to see its compa-ratio and range penetration.
- 5Review overlap in the table; adjust spread or progression until promotions mean a meaningful pay step.
Formula and method
Each grade’s midpoint grows from the grade-1 midpoint by the midpoint progression p, compounded once per grade. Because the midpoint is halfway between minimum and maximum and the spread s is measured from the minimum, the minimum is 2 × midpoint ÷ (2 + s) and the maximum is minimum × (1 + s). For example, a 50% spread around a $50,000 midpoint gives $40,000 to $60,000.
Overlap is the part of a grade’s range that also falls inside the next grade, as a share of the lower grade’s width (0% if the ranges do not touch). Compa-ratio is salary ÷ midpoint, and range penetration is (salary − minimum) ÷ (maximum − minimum), so 0% is the minimum and 100% the maximum.
- Mid₁
- Midpoint of grade 1
- p
- Midpoint progression between grades
- s
- Range spread, (max − min) ÷ min
- g
- Grade number
Worked examples
10 grades, 50% spread, 12% progression
Grade 3’s midpoint is $50,000 × 1.12² = $62,720. With a 50% spread the minimum is 2 × 62,720 ÷ 2.5 = $50,176 and the maximum $75,264. A $60,000 salary has a compa-ratio of 0.957 and sits about 39% of the way into the range. Grade 4 starts at $56,197, so 76% of grade 3’s range overlaps grade 4 — a sign this design is fairly loose.
Tighter structure: 30% spread, 15% progression
With a 30% spread, grade 1 runs from 2 × 50,000 ÷ 2.3 = $43,478 to $56,522. Grade 2’s midpoint is $57,500, so its minimum is exactly $50,000 and half of grade 1’s range overlaps it. A $48,000 salary has a compa-ratio of 0.96 and is 34.7% into the range; the top grade midpoint reaches $175,894.
Frequently asked questions
What is a salary range spread?+
Range spread is the distance between the minimum and maximum of a pay range, usually expressed as a percentage of the minimum: (max − min) ÷ min. A $40,000–$60,000 range has a 50% spread. Wider spreads give more room for growth within a grade.
What is midpoint progression?+
Midpoint progression, or midpoint differential, is the percentage increase from one grade’s midpoint to the next. Larger progressions mean bigger pay steps on promotion and fewer grades needed to cover the same pay span.
How much should salary ranges overlap?+
Some overlap between adjacent grades is normal, because an experienced employee in a lower grade can be worth as much as a new hire in the grade above. Very high overlap, however, makes promotions feel meaningless, so many structures aim for moderate overlap.
What is compa-ratio?+
Compa-ratio is an employee’s salary divided by the midpoint of their range. A compa-ratio of 1.00 means paid exactly at midpoint, below 1.00 below midpoint and above 1.00 above it. It is a quick way to compare pay positioning across different grades.
What is range penetration?+
Range penetration shows how far a salary sits between the range minimum (0%) and maximum (100%). It is useful for merit matrices, where people low in the range often receive larger percentage increases than those near the top.
How do I set the first midpoint?+
Use salary survey or market benchmark data for the benchmark jobs you place in the lowest grade, at the market percentile your pay policy targets (often the median). The rest of the structure then follows from your progression and spread choices.