Salary Range Calculator
Design fair compensation scales with multiplier-based salary bands and verify compliance with the 3× salary cap (constitutional requirement that highest salary ≤ 3× lowest salary).
Purpose
This calculator helps you:
- Design equitable salary structure for growing teams
- Ensure salary fairness (verify 3× salary cap compliance)
- Understand payroll impact of team composition
- Visualize compensation bands
- Plan salary budgets for hiring phases
Interactive Calculator
Company Scenarios
Base Salary (Multiplier 1.0×)
Team Composition
Payroll Summary
Salary Bands
Payroll Breakdown by Role
| Role | Multiplier | Salary | Count | Total Payroll | % of Total |
|---|---|---|---|---|---|
| Entry-Level Employee-Owner | 1× | $75,000 | 2 | $150,000 | 13.2% |
| Mid-Level Contributor | 1.3× | $97,500 | 3 | $292,500 | 25.7% |
| Senior Contributor | 1.6× | $120,000 | 3 | $360,000 | 31.6% |
| Lead/Principal | 2× | $150,000 | 1 | $150,000 | 13.2% |
| Executive/C-Suite | 2.5× | $187,500 | 1 | $187,500 | 16.4% |
Key Insights
- ✅ Salary ratio compliant: Max/min ratio of 2.50× meets 3× constitutional cap.
- ✅ Living wage maintained: Team average of $114,000 exceeds 75K minimum.
- ℹ️ Monthly payroll: $95,000 per month for 10 employees.
- ℹ️ Salary distribution: Entry-level to $187,500 range spans 2.5×.
How to Use
1. Load a Preset Scenario
Click Small Team (3), Growing (14), or Mature (26) to see realistic salary structures at different company stages.
- Small Team: 3 employees, simple structure
- Growing: 14 employees, mixed seniority
- Mature: 26 employees, full hierarchy
2. Adjust Custom Inputs
Base Salary
Set the 1.0× multiplier baseline (typically 75K, the living wage minimum). All other salaries are multipliers of this base.
Team Composition
For each role, adjust the count slider to specify how many employees in that role:
- Entry-Level Employee-Owner (1.0×)
- Mid-Level Contributor (1.3×)
- Senior Contributor (1.6×)
- Lead/Principal (2.0×)
- Executive/C-Suite (2.5×)
3. Read Results
Payroll Summary Cards
- Total Employees: Count of all employees
- Average Salary: Total payroll ÷ employees
- Salary Ratio: Max salary ÷ Min salary (must be ≤ 3.0×)
- Total Annual Payroll: Sum of all salaries
Salary Bands Visualization
Shows each role's salary and % above base (e.g., "Mid-Level: $97.5K = +30%").
Payroll Breakdown Table
Detailed view with count, individual salary, and total payroll per role.
Insights Panel
Smart indicators:
- ✅ Salary ratio compliance (≤ 3.0× is constitutional requirement)
- ✅ Living wage verification (average ≥ 75K)
- ℹ️ Monthly payroll impact and per-employee cost
Key Concepts
Living Wage Minimum
All employees earn at least 75K/year (base salary, 1.0× multiplier).
This is non-negotiable and adjusted annually for inflation (San Diego cost of living basis).
Even entry-level employees have full access to Four Pillars benefits (healthcare, education, emergency fund).
Multiplier-Based Bands
All salaries are multipliers of the base:
| Multiplier | Role | Salary | Usage |
|---|---|---|---|
| 1.0× | Entry-Level Employee-Owner | $75,000 | New hires, junior roles |
| 1.3× | Mid-Level Contributor | $97,500 | 1-3 years experience |
| 1.6× | Senior Contributor | $120,000 | 3+ years, specialized expertise |
| 2.0× | Lead/Principal | $150,000 | Team leadership, domain expert |
| 2.5-3.0× | Executive/C-Suite | $187.5K-$225K | Founder, CEO, CTO |
Advantages:
- Transparent and predictable
- Fair (growth is proportional)
- Easy to communicate
- Simple to adjust (raise base, all multipliers increase together)
3× Salary Cap (Constitutional)
Requirement: Highest salary ≤ 3× lowest salary
Example:
- If lowest salary = 75K, highest = 225K (3×)
- If you want to pay CEO 250K, you must raise living wage to 83.3K (250 ÷ 3)
Why this matters:
- Prevents executive bloat
- Ensures wealth distribution
- Aligns incentives (as company grows, everyone benefits)
The calculator warns you if ratio exceeds 3.0×.
Total Compensation
Salary alone is incomplete. Total compensation includes:
- Base Salary: Fixed annual payment
- Profit Share: Annual distribution from net profit (equal to all employees)
- Four Pillars: Healthcare (100% coverage), Education ($5K/year budget), Emergency Fund
At $100MM scale:
- Salary: $135K average
- Profit share: $800K average
- Total: $935K per employee
(See FUND_ALLOCATION.md for full breakdown.)
Scenarios Explained
Small Team (3 employees)
Structure:
- 1× Entry-Level ($75K)
- 1× Mid-Level ($97.5K)
- 1× Lead ($150K)
Metrics:
- Total payroll: $322.5K/year
- Average salary: $107.5K
- Salary ratio: 2.0× (well within 3× cap)
Use case: Seed stage, founder + 2 early hires.
Growing (14 employees)
Structure:
- 3× Entry-Level ($75K)
- 4× Mid-Level ($97.5K)
- 2× Senior ($120K)
- 1× Lead ($150K)
Metrics:
- Total payroll: $1,290K/year
- Average salary: $92.1K
- Salary ratio: 2.0× (safe)
Use case: Post-seed, Series A stage, diverse team.
Mature (26 employees)
Structure:
- 5× Entry-Level ($75K)
- 8× Mid-Level ($97.5K)
- 6× Senior ($120K)
- 3× Lead ($150K)
- 2× Executive ($187.5K-$225K)
Metrics:
- Total payroll: $2.675M/year
- Average salary: $102.9K
- Salary ratio: 3.0× (at maximum cap)
Use case: Growth stage, established company with leadership team.
How to Use for Planning
Scenario: Hiring Plan for Next Year
Current: 10 employees, avg $95K
Plan: Hire 5 more, bringing team to 15
- Load "Growing" scenario
- Adjust role distribution to match your plan (e.g., add 5 mid-level contributors)
- Check new total payroll ($X/year)
- Verify this is 40-50% of projected revenue (healthy payroll ratio)
Scenario: Raise for All Employees
Plan: Cost of living increase, 5%
- Increase base salary from 75K to 78.75K
- All multiplied salaries automatically adjust
- See new total payroll impact (~5% increase)
- Verify still profitable
Scenario: Executive Hiring
Plan: Hire a CEO at 2.5× multiplier (max allowed)
- Set base salary to current level (e.g., 75K)
- Add 1 Executive at 2.5× (187.5K)
- Check salary ratio:
- If ratio < 3.0×, hiring is compliant
- If ratio > 3.0×, raise base salary to make it work
- Example: To pay CEO 250K with 75K base = 3.33× (exceeds cap)
- Solution: Raise base to 83.3K, CEO gets 250K (3.0× exactly)
Common Questions
Q: Why not just pay everyone the same?
A: Incentives differ by seniority. A multiplier system rewards growth while maintaining equity. It's more fair than compression.
Q: Can we pay someone 1.5×?
A: Yes! The multipliers are defaults. Adjust by editing the calculator or in your hiring agreements. Just ensure salary ratio ≤ 3.0×.
Q: What if we want to hire someone at $200K?
A: Check the ratio. If base = 75K, then 200K = 2.67× (allowed). If base = 50K, then 200K = 4.0× (exceeds 3× cap). Solution: Raise base salary or negotiate down.
Q: Should we adjust base salary for inflation?
A: Yes, annually. If base was $75K in 2026, adjust to ~$77K in 2027 (2.6% inflation). All multiplied salaries adjust automatically.
Q: Why 3× cap instead of 2× or 5×?
A: 3× is the constitutional limit (anti-greed safeguard). It prevents CEO from earning more than 3× a junior employee while still allowing meaningful hierarchy and expertise rewards.
Q: Can the cap be lowered?
A: Only with 75% employee vote (constitutional amendment). Cannot be raised above 3.0× without vote.
Integration with Other Docs
- FUND_ALLOCATION.md — Shows how salaries fit into overall budget
- EMPLOYEE_RIGHTS_CHARTER.md — Full rights and benefits
- DECISION_MAKING_AUTHORITY.md — Who decides salary bands
Last Updated: 2026-01-11