Salary Benchmark Calculator

Get a rough 25th, 50th, 75th, and 90th percentile salary range by role, experience, location, and company size. The figures are fixed estimates for planning, not live market data. See how they are built.

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What Is a Salary Benchmark Calculator?

A salary benchmark calculator shows you how a given salary compares to market rates for the same role, experience level, and location. It answers the question every hiring manager faces: are we paying competitively? Pay too low and strong candidates decline your offers or leave after 12 months. Pay too high and you burn through budget faster than necessary. Benchmarking lets you find the right positioning — whether that is the 50th percentile for an early-stage startup or the 75th percentile for a company competing for senior engineers. Use this calculator for a rough first range, then confirm it with the free BLS data and job postings described below before you set a pay band or make an offer.

How This Calculator Works, and Its Limits

The calculator does not pull live salary data. Each role has one fixed base figure written into the tool: a rough US salary for a mid-level hire. The tool multiplies that figure by three adjustments to get an estimated median, then sets the other percentiles as fixed shares of that median. The figures are not updated automatically. Use the result as a first rough range, then confirm it with BLS data or local job postings, as shown below.

Estimated median = base figure for the role × experience × location × company size
25th percentile = 82% of the median · 75th = 120% · 90th = 142%

ExperienceAdjustment
Entry Level (0-2 years)× 0.72
Mid Level (3-5 years)× 1.00
Senior (6-9 years)× 1.28
Lead / Staff (10+ years)× 1.52
Company sizeAdjustment
Startup (1-50)× 0.88
Small (51-200)× 0.95
Mid-Market (201-1000)× 1.00
Enterprise (1000+)× 1.10
LocationAdjustment
San Francisco / Bay Area× 1.35
New York City× 1.28
Seattle× 1.22
Boston× 1.18
Los Angeles× 1.15
Austin× 1.05
Denver× 1.02
Chicago× 1.00
Atlanta× 0.95
Other US City× 0.92
Remote (US)× 1.00
London, UK× 0.95
Europe (Other)× 0.82
India× 0.35
Latin America× 0.45
Other / Global× 0.65

Chicago is the reference point (× 1.00). Real pay can differ a lot from these estimates, in both directions, for a given role and city.

How to Benchmark a Salary in 5 Steps

  1. 1Describe the job by its duties and level, not its title. A "manager" at a 10-person firm and at a 1,000-person firm can be very different jobs. Write down what the person will actually do.
  2. 2Find the matching occupation in BLS data. Look up the occupation in the BLS Occupational Employment and Wage Statistics (OEWS). Note the 25th percentile, the median, and the 75th percentile, first for the nation, then for your state or metro area.
  3. 3Check local job postings. Find 5 to 10 current postings for the same role near you and note their pay ranges. Many postings now show a range because of pay transparency laws.
  4. 4Pick your pay position: lead, match, or lag. Decide whether you will pay above, at, or below the middle of the market for this role. The table further down shows when each one makes sense.
  5. 5Set a range and write down why. Put the range around your chosen point, note the sources and the date, and review it once a year. BLS publishes new OEWS estimates once a year.

How to Read Salary Percentiles: A Worked Example

A percentile tells you how many people earn less than a given amount. These are the real BLS national figures for accountants and auditors (May 2025), yearly wages:

PercentileYearly wageWhat it means
10th percentile$56,0201 in 10 earn less than this
25th percentile$67,0201 in 4 earn less
50th percentile (median)$83,680Half earn less, half earn more
75th percentile$109,8103 in 4 earn less
90th percentile$144,0909 in 10 earn less

Source: BLS OEWS profile for accountants and auditors, May 2025.

  • →Use the median, not the average. The mean wage is $94,750, higher than the median of $83,680, because a few high earners pull the average up.
  • →Place your number. Say you plan to offer $75,000. That is between the 25th percentile ($67,020) and the median ($83,680). More than a quarter of accountants nationally earn less, but fewer than half.
  • →Work out the compa-ratio. Divide the salary by your target point. With the median as the target: $75,000 ÷ $83,680 = 0.90. The offer is about 90% of the middle of the market.
  • →Then go local. These are national figures. BLS also publishes them by state and metro area, and pay can differ a lot between places. Use the figures for where the person will work.

Lead, Match, or Lag: Pick Your Market Reference Point

Your market reference point is the salary you aim to pay someone who does the job fully. Most companies start at the market median, then move up or down on purpose. With the accountant figures above:

PositionExample pointWhen it fits a small business
Lead75th percentile, $109,810The role is hard to fill, it is key to revenue, or you need someone fast.
MatchMedian, $83,680Most roles. You compete on the job itself, not only on pay.
Lag25th percentile, $67,020Entry-level roles, or when you offer things candidates value instead, such as remote work, flexible hours, or training. Say so in the offer.

Lagging on every role makes hiring slow and people leave sooner. If you lag, do it on purpose and for a reason you can explain to the candidate.

Free Salary Data Sources

  • →BLS Occupational Employment and Wage Statistics (OEWS). Yearly wage estimates for about 830 occupations, for the nation, each state, and metro areas. Each one shows the 10th, 25th, 50th, 75th, and 90th percentiles. The latest are the May 2025 estimates, published on May 15, 2026. Free, with no sign-up.
  • →Job postings with pay ranges. Pay transparency laws make many employers publish a range. For example, Washington State requires employers with 15 or more employees to include a wage scale or salary range in job postings. Postings show what employers offer now, which annual surveys cannot.
  • →Your own payroll. Check what you pay people in the same or similar roles today. A new hire paid far above the team creates problems you will have to fix later.

Why Salary Benchmarking Matters

Compensation benchmarking is not just about staying competitive in offers — it has a direct impact on hiring speed, retention, and pay equity:

  • →Faster offer acceptance. Candidates who receive offers aligned to market data accept faster and negotiate less aggressively. An offer that clearly reflects market research signals a professional hiring process.
  • →Lower turnover. Employees who feel paid fairly stay longer. Regular benchmarking helps catch pay compression issues before they cause attrition.
  • →Pay equity compliance. Structured salary bands based on market data make it easier to demonstrate equitable pay practices across gender, ethnicity, and tenure.
  • →Smarter headcount budgeting. Knowing the 25th, 50th, and 75th percentile ranges lets you build accurate salary ranges into your headcount plan rather than guessing.

How to Use This Tool

  1. 1Select the role and experience level. Choose the job function and seniority tier that matches the position you are benchmarking.
  2. 2Enter the location. Salaries vary significantly by geography. Enter the city or region where the role is based — or use a national average for fully remote roles.
  3. 3Review the percentile breakdown. See the 25th, 50th, and 75th percentile ranges and decide where your target salary positioning falls relative to the market.

Tips for Compensation Benchmarking

  • →Define your compensation philosophy first. Decide whether you want to lead, match, or lag the market before benchmarking. Your philosophy determines which percentile to target, not the data itself.
  • →Benchmark total compensation, not just base salary. In competitive markets, equity and benefits matter enormously. A below-market base can be offset by strong equity, but only if you communicate that clearly during the offer process.
  • →Use multiple data sources. No single benchmark is perfect. Cross-reference this tool with Levels.fyi, Glassdoor, LinkedIn Salary, and Radford where available.
  • →Build salary bands, not point estimates. A range (e.g., $85k–$105k for a mid-level engineer) gives you flexibility to reward experience while maintaining structure and equity.
  • →Review annually. Market rates for in-demand roles can shift 10–20% year over year. An outdated benchmark is worse than no benchmark — it gives you false confidence.

Ready to make the offer? Put the salary into the free offer letter generator and get a letter you can edit and send. Open the offer letter generator →

Frequently Asked Questions

Is this salary benchmark calculator free?

Yes, completely free. No signup or payment required.

Where do the numbers in this calculator come from?

They are fixed estimates written into the tool, not live market data. Each role has one base figure for a mid-level US hire. The tool multiplies it by set adjustments for experience, location, and company size to estimate the median, then sets the 25th, 75th, and 90th percentiles as fixed shares of that median. Use the result as a rough first range and confirm it with BLS wage data and local job postings.

What is a market reference point in salary?

The market reference point is the salary you aim to pay someone who does the job fully. Most companies set it at the market median for the role, then move it up (lead) or down (lag) on purpose. Compa-ratio compares a salary with it: salary ÷ market reference point. A ratio of 1.00 means the salary is exactly at the target.

What is salary benchmarking?

Salary benchmarking is the process of comparing compensation for a specific role against market data — typically organized by role, experience level, location, and industry. It tells you whether your pay is below, at, or above market, so you can make informed decisions about offer amounts, salary bands, and pay equity.

What percentile should I target when setting salaries?

It depends on your talent strategy. Companies competing for top talent often target the 75th percentile or higher. Budget-conscious companies may target the 50th percentile (median). Going below the 25th percentile makes it difficult to attract qualified candidates and increases turnover risk. Most growing startups target the 50th–75th percentile range.

How often do salary benchmarks change?

Salary benchmarks shift meaningfully over time — particularly in high-demand fields like software engineering, data science, and product management. In stable periods, annual reviews are sufficient. During periods of high demand or inflation, benchmarks should be reviewed every six months to stay competitive.

How does location affect salary benchmarks?

Location is one of the biggest drivers of salary variance. A software engineer in San Francisco can earn much more than the same role in a smaller US city, so check BLS figures for the metro area where the person will work. Remote-first companies often apply geographic pay bands based on cost of living or cost of labor in the employee's location.

How do I use salary benchmarks in offer negotiations?

Benchmarks give you a defensible anchor point. When a candidate asks for more than your offer, you can reference market data to explain your positioning. If you are at the 50th percentile and the candidate expects the 75th, you can have an honest conversation about total compensation, equity, or growth trajectory as offsetting factors.

What if I cannot match the market rate for a role?

If base salary is constrained, consider other elements of total compensation: equity, flexible working arrangements, learning and development budget, additional PTO, or accelerated review cycles. Candidates weigh total value, not just base salary. Being transparent about compensation philosophy also builds trust during the offer process.

What is the difference between total compensation and base salary?

Base salary is the fixed cash component. Total compensation includes base salary plus variable pay (bonuses, commissions), equity (stock options or RSUs), benefits (health, dental, vision, retirement), and other perks. When comparing offers or benchmarking, always compare total compensation — not just base — for an accurate picture.