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How Do You Calculate the Midpoint of a Salary Range?

Fox Lawson and Associates, writing for HRPeople, states that the midpoint of a wage range is determined by several formulas based on the lowest or maximum income and range spread. Using a minimum salary, the formula is (((2+RS)/2) x (1+RS)) x Minimum Pay, where “RS” is the salary range, expressed as a percentage and decimal.

For instance, if the minimum pay is $10,000 and the salary range is 20%, the calculation would be (((2+0.2)/2) x (1+0.2)) x $10,000. The calculation provides a median wage of $13,200.

If the maximum salary is known, the calculation is as follows: ((1/(1+RS)) x ((2+RS) / ((2+(2xRS))). For instance, if the maximum compensation is $20,000 and the salary range is again 20 percent, the calculation is ((1/(1+0.2)) x ((2+0.2) / ((2+(20.2))) x $20,000). This results in a median pay of $15,283.33 per year.

Joel Gomez
Joel Gomezhttps://www.gadgetclock.com
Joel Gomez is an Avid Coder and technology enthusiast. To keep up with his passion he started Gadgetclock 3 years ago in 2018. Now It's his hobby at the night :) If you have any questions/queries and just wanna chit chat about technology, shoot a mail - Joel at gadgetclock com.

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