Salary Range Penetration Calculator
Find how far a salary sits through its pay range — range penetration (salary − min) ÷ (max − min) — with the quartile, compa-ratio, range spread, raise to midpoint and room to the maximum.
How it works
Range penetration = (Salary − Range minimum) ÷ (Range maximum − Range minimum) × 100 · Midpoint = (Min + Max) ÷ 2 · Compa-ratio = Salary ÷ Midpoint · Range spread = (Max − Min) ÷ Min
Range penetration shows where a salary sits inside its pay range: 0% is the minimum, 50% the midpoint and 100% the maximum. Compensation teams (WorldatWork and most HR systems) use it with the compa-ratio to steer merit increases — larger raises low in the range, smaller ones near the top — and to spot employees who are below the minimum or red-circled above the maximum. Unlike the compa-ratio, penetration does not depend on how wide the range is.
Worked example
A salary of $72,000 in a range from $60,000 to $90,000 has a range penetration of (72,000 − 60,000) ÷ (90,000 − 60,000) = 40.00%, in the second quartile. The midpoint is $75,000, so the compa-ratio is 0.960 and a raise of $3,000 (4.17%) would reach it. The range spread is 50.00% and there is $18,000 of room to the maximum.
Sources: WorldatWork — Salary range design and pay positioning · SHRM — How to establish salary ranges
Frequently asked questions
How do you calculate range penetration?
Subtract the range minimum from the salary and divide by the width of the range (maximum − minimum). $72,000 in a $60,000–$90,000 range is 12,000 ÷ 30,000 = 40%.
What is the difference between range penetration and compa-ratio?
Compa-ratio compares pay with the midpoint (salary ÷ midpoint), so 1.00 is the midpoint. Range penetration measures position between minimum and maximum, so 50% is the midpoint. In a 50%-spread range a compa-ratio of 0.96 is about 40% penetration.
What range penetration is normal?
New or developing employees usually sit at 0–40%, fully competent ones around 40–60% and experts or long-tenured staff at 60–100%. Below 0% is green-circled (under the minimum) and above 100% red-circled.
How is range penetration used in merit increases?
Many merit matrices give bigger percentage raises for the same performance rating when penetration is low and smaller ones when it is high, so pay moves toward the right point in the range over time.
Related calculators
This calculator is for educational purposes. Double-check important results before acting on them.