# Salary Range Spread Formula

**Salary Range**

A salary range is the range of salary in one job grade. The pay range represents the amount that the firm is willing to pay.

**Range Spread**

The range spread is also known as range width or full range spread. It determines the breath of salary range.

Definition 1 – The distance between the bottom and top of the salary range.

Definition 2 – The percentage in which the maximum exceeds the minimum, relative to the minimum

Definition 3 – It is the difference between the maximum and the minimum pay level, in dollars, for a given pay range.

The range spread percentage is a percentage calculated by dividing the range spread for a given pay range by the minimum for that pay range.

Formula – It can be express as a percentage:

Range Spread (%) = __Maximum less Minimum __ X 100

Maximum

Formula – It can also be express as a ratio:

Range Spread = __Maximum less Minimum __

Maximum

Example

Maximum = $90,000

Minimum = $60,000

It can be express as a percentage:

Range Spread (%) = ($90,000 – $60,000) / $60,000 X 100 = 50%

It can also be express as a ratio:

Range Spread = ($90,000 – $60,000) / $60,000 = 0.5

**Example Using Excel**

**How to Calculate the Spread on Either Side of Midpoint**

The following formulas are used to calculate the lower end spread and the upper end spread.

Source: The WorldatWork Handbook of Compensation,Benefits and Total Rewards