To calculate the Compa Ratio (CR):
CR=(ASMS)×100
Where:
The compa ratio, or comparative ratio, is a metric that compares an individual's salary to the midpoint of a defined salary range. It indicates whether an employee is paid below, at, or above the market rate[^1^][^2^].
Let's assume the following values:
Using the formula:
CR=(47,00049,000)×100=95.92%
The compa ratio is 95.92%.