How to Calculate Salary Range Percentiles

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For just about every job offered by an employer there is a salary range which indicates tolerable pay rates based on knowledge, experience, education and job market. Prior to accepting a new position, it is important to know your ranking within that range to better understand your options for salary negotiations as well as your potential for further salary growth with the company.

Calculating Salary

To determine the salary range percentile, you must first calculate the difference between the maximum and minimum salary figures. For example, if the salary range for a particular position is between $45,000 and $75,000, the difference between those two figures would be $30,000. Next, find the difference between the salary offer and the minimum salary. In this example, assuming the offer was $55,000, the difference would be $10,000. Finally, divide this difference by the difference in salary range. For this scenario, $10,000 would be divided by $30,000 to give a percentage of 33%. This means that the salary offered is higher than 33% of other salaries in the range, or in the 33rd percentile.