Enter the specific salary, lowest salary in the range, and highest salary in the range into the calculator to determine the salary range percentile. This calculator can also evaluate any of the variables given the others are known.
Salary Range Percentile Formula
The following formula is used to calculate the salary range percentile.
SRP = (S - L) / (H - L) * 100
Variables:
- SRP is the salary range percentile
- S is the specific salary
- L is the lowest salary in the range
- H is the highest salary in the range
To calculate the salary range percentile, subtract the lowest salary in the range from the specific salary. Then subtract the lowest salary from the highest salary in the range. Divide the first result by the second result, and multiply the quotient by 100 to get the percentile.
What is a Salary Range Percentile?
A Salary Range Percentile is a statistical tool used to understand the distribution of salaries within a specific job or industry. It shows what percentage of workers earn less than a particular salary. For example, if a salary is in the 70th percentile, it means that 70% of workers in that field earn less than that amount, and 30% earn more. This can be useful for job seekers, employers, and researchers to understand compensation trends and make informed decisions.
How to Calculate Salary Range Percentile?
The following steps outline how to calculate the Salary Range Percentile.
- First, determine the specific salary (S).
- Next, determine the lowest salary in the range (L).
- Next, determine the highest salary in the range (H).
- Next, gather the formula from above = SRP = (S – L) / (H – L) * 100.
- Finally, calculate the Salary Range Percentile.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
specific salary (S) = 50000
lowest salary in the range (L) = 40000
highest salary in the range (H) = 60000
