MorganHR Merit Matrix Calculator – SimplyMerit Knowledge Center

We’ve published a new Merit Matrix Calculator to help compensation teams quickly build a merit increase matrix that stays within budget.

Tool link: https://morganhr.com/merit-matrix-calculator/

What it does

The Merit Matrix Calculator helps you:

Enter your overall merit budget (%)
Define performance rating distributions and multipliers
Define compa-ratio bands (counts are converted to % automatically) and multipliers
Automatically generate a recommended merit % for every cell in the matrix using goal-seek logic so the weighted average matches your target budget

How to use it

Set your Overall Merit Budget (%)
- Example: 3.0
Configure Performance Ratings
- For each rating row, enter:
  - Pop % (your distribution)
  - Mult % (relative multiplier; 100% is the baseline, 150% is 1.5x baseline, etc.)
- Tip: Performance population should total 100%
Configure Compa-Ratio Bands
- For each band row, enter:
  - Count (employee count in the band)
  - Mult % (higher for below-market bands if you want to move them up; lower for above-market bands if you want smaller increases)
- The tool will convert counts into Pop % automatically
Review the Generated Merit Matrix
- The matrix updates as you change inputs
- The tool displays:
  - Weighted Average Merit
  - Target Budget
  - A confirmation that the matrix is budget-balanced
(Optional) View Calculation Proof
- Expand View Calculation Proof (25 cells) to see, for each cell:
  - Merit %
  - Perf Pop %
  - Compa Pop %
  - Combined %
  - Contribution to the weighted average

Working with rows (add, delete, reorder)

In either the Performance Ratings or Compa-Ratio Bands tables:

Add: Click + Add Rating or + Add Band
Delete: Click the X on the right side of the row
Reorder: Drag the handle on the left

Using segments (multiple matrices)

Use segments when you want separate matrices for different populations (example: Exempt vs. Non-Exempt).

Click + Add Segment to create a new tab
Click the pencil icon to rename a segment

Exporting to CSV

Click Export to CSV in the Generated Merit Matrix section to download the matrix for sharing or for use in other tools.

Notes and tips

Warnings appear if inputs need attention (example: populations do not total 100%).
Ratings with a 0% multiplier can be used for groups that should receive 0% merit.
Your work saves automatically in your browser, so you can come back later without re-entering everything.
Use Reset to Defaults anytime you want to start over.

Support

If you have questions about recommended distributions, band definitions, or how to interpret the output for your compensation cycle, reach out to MorganHR.