Free ForeverNo SignupPay EquityUpdated 2026

Salary Benchmark Calculator

Compare your compensation to market rates — and calculate the cost of closing any pay gap.

Paying below market is the most common avoidable cause of turnover. Salary benchmarking compares your pay against market percentiles (typically 25th, 50th/median, and 75th). Most companies target the 50th–75th percentile to remain competitive without overpaying.

Current Salary

The salary you want to benchmark

Market P25 (25th percentile)

Market salary at the 25th percentile for this role

Market P50 (Median)

Median market salary for this role

Market P75 (75th percentile)

Market salary at the 75th percentile for this role

Employees in This RoleOptional — calculates total adjustment cost

Number of people in the same role (for cost calculation)

The Formula

Compa-Ratio = Current Salary ÷ Market P50 × 100

In plain English

Compa-ratio = current salary / market median × 100. Gap = market benchmark − current salary.

Worked Example

$95K current ÷ $105K market median = 90.5% compa-ratio. Gap to median: $10K. Gap to P75 ($125K): $30K.

How to Benchmark Compensation

Use multiple data sources: LinkedIn Salary, Glassdoor, Levels.fyi (tech), Radford (enterprise), Payscale, and Carta (startup equity comp). No single source is comprehensive — cross-reference at least 2–3.

Adjust for location (remote-first vs. SF Bay Area vs. Eastern Europe), company stage (early-stage startups often pay below market with equity compensation as an offset), and the specific role scope (a "senior engineer" at one company may be different from another).

90–110%

Target compa-ratio range for retention

75th %ile

Target for top-performer retention

2 sources

Minimum data sources for benchmarking

Annual

Recommended salary review frequency

Compa-Ratio Interpretation Guide

Compa-Ratio	Market Position	Retention Risk	Action
115%+	Above P75	Very low	Review for overpay
100–115%	P50–P75	Low	Maintain
90–100%	Near median	Moderate	Plan adjustment
< 90%	Below median	High	Immediate review

Source: Mercer Global Compensation Survey 2025 · Carta Compensation Report 2024

Common Mistakes

⚠️

Using national averages for local roles

A developer in San Francisco commands 2–3× the salary of one in rural Midwest. Always benchmark by location or remote pay band, not national averages.

⚠️

Benchmarking job titles instead of job scopes

"Senior Engineer" varies enormously in scope and expectations. Benchmark based on responsibilities and output expectations, not just titles.

⚠️

Not accounting for total compensation

Cash salary is one component. Total compensation includes equity, bonus, benefits, and PTO. A below-market salary with exceptional equity could be above-market in total comp — ensure you're comparing apples to apples.