Synastry compares two charts; a composite chart mathematically combines them into a third, entirely new chart. That chart belongs neither to A nor to B — it belongs to the relationship itself.
For each planet, the midpoint between its positions in the two charts is taken. If A's Venus is at 10° Aries and B's Venus is at 20° Aries, the composite Venus falls at 15° Aries. The same operation is repeated for every planet, for the Ascendant and for the house cusps.
What emerges is a single arrangement of planets, signs and houses that was never actually lived by anyone, yet is mathematically consistent — as though the relationship had a birth chart of its own.
Synastry compares two separate people, so it is strong at showing interpersonal dynamics — who treats whom in what way. A composite treats the relationship as a single whole, so it is considered better suited to broader questions: where is this relationship going, what is it for. Most astrologers use both — first synastry for the dynamic, then the composite for the whole.
Not only romantic ones. Composite charts can be cast for business partnerships, friendships, even parent-child relationships. Technically all that is required is the birth data of both people.
The comparison of two charts, the step before a composite.
The single-person charts a composite takes as its input.