Originally Posted by PeteHski

One experienced fitter I know suggests not compensating (at least initially) for saddle height. So you get an equal reduction in both leg extension and hip compression. From there you can decide for yourself how to split the reduced motion.

There are also less downsides from running your saddle too low vs too high. I have experimented with that myself and was surprised how low I could drop my saddle without causing any issues. Raising it on the other hand even slightly above a certain point causes problems with saddle comfort and the back of my knees. So I settled on a saddle height a good 5-10 mm below what I could still comfortably pedal. Power was totally unaffected by running that much lower, even on long seated climbs.