Salary Band Midpoint Calculator
Build a pay band from a midpoint and range spread, from a minimum and maximum, or from percentages around the midpoint — get the minimum, maximum, quartiles (or thirds), hourly and monthly equivalents, an employee’s compa-ratio and range penetration, and a full pay structure with midpoint progression and overlap.
How it works
From midpoint and spread: min = midpoint ÷ (1 + spread ÷ 2), max = min × (1 + spread) · From min and max: midpoint = (min + max) ÷ 2, spread = (max − min) ÷ min · From % of midpoint: min = midpoint × (1 − below %), max = midpoint × (1 + above %) · Quartiles = min + ¼, ½, ¾ of (max − min) · Compa-ratio = pay ÷ midpoint · Range penetration = (pay − min) ÷ (max − min) · Next grade midpoint = midpoint × (1 + progression) · Overlap = (max of lower grade − min of higher grade) ÷ (max − min of higher grade)
A salary band is defined by its midpoint — the market rate for a fully competent person in the role — and its range spread, the percentage by which the maximum exceeds the minimum. Wider spreads suit senior roles where experience varies a lot; narrower spreads suit standardized jobs. You can build the band three ways: outward from a midpoint and spread, from a known minimum and maximum, or by setting the minimum and maximum as percentages of the midpoint (80% and 120% is a common professional band, which is a 50% spread). The calculator splits the band into quartiles, thirds or quintiles so you can see where new hires, fully proficient staff and experts belong, and converts every point to hourly and monthly pay. Enter someone’s pay to get the compa-ratio (pay ÷ midpoint) and range penetration (how far through the range they are). Under More options, the band becomes one grade of a structure: each grade’s midpoint rises by the midpoint progression, and the table shows how much adjacent grades overlap.
Worked example
For an $80,000 midpoint with a 50% spread, the minimum is 80,000 ÷ 1.25 = $64,000 and the maximum is 64,000 × 1.5 = $96,000. The quartiles land at $72,000 and $88,000, evenly bracketing the midpoint; hourly, the band is $30.77 to $46.15 at 2,080 hours. An analyst paid $74,000 has a compa-ratio of 0.93 and a range penetration of 31% (second quartile), and needs $6,000 (8.1%) to reach the midpoint. In a five-grade structure with 10% midpoint progression, grade 4’s midpoint is $88,000 and adjacent grades overlap by 72.7%.
Sources: ERI — Common compensation terms and formulas (range spread, penetration, compa-ratio, overlap)
Frequently asked questions
What is range spread?
It is how much the top of the band exceeds the bottom, as a percentage. A 50% spread means the maximum is 1.5 times the minimum. Entry-level bands are often 30–40%; executive bands can exceed 80%. If you know the min and max as percentages of the midpoint, spread = (1 + above %) ÷ (1 − below %) − 1: 120% ÷ 80% − 1 = 50%.
Why derive min and max from the midpoint?
The midpoint is anchored to market data, so building the band outward from it keeps pay competitive and grades consistent. It also makes compa-ratio — pay divided by midpoint — meaningful across roles.
Where should new hires fall in the band?
Typically between the minimum and the midpoint (the lower quartiles), leaving room to grow toward the midpoint as they become fully proficient and beyond it as they excel.
What is the difference between compa-ratio and range penetration?
Compa-ratio compares pay with the midpoint: 1.00 means exactly at midpoint, 0.90 means 10% below it. Range penetration shows how far pay sits between the minimum (0%) and maximum (100%). For a symmetric band, 50% penetration equals a compa-ratio of 1.00.
How much should salary grades overlap?
Moderate overlap of roughly 50–60% between adjacent grades is a common goal. With a 50% spread, a 10% midpoint progression gives about 73% overlap and 20% gives 50%; zero overlap only works in step structures.
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Educational planning estimate, not accounting, tax or HR advice.