Convert software engineer salary between annual, monthly, and hourly. Compare FAANG vs startup pay, understand equity compensation, and see how location affects your take-home pay.
BLS + Levels.fyi data, US national averages
Convert your software engineer salary between annual, monthly, biweekly, and hourly rates with our salary converter.
Open Salary ConverterSoftware engineering consistently ranks among the highest-paying professions in the United States, and for good reason — skilled engineers are in high demand across virtually every industry as companies continue to digitize and automate their operations. With a national average of $124,200/year, software engineering pays substantially above the median US household income of around $74,000. But the range is enormous: from $70,000 for a junior developer in a mid-sized city to over $500,000 total compensation for a senior staff engineer at Google in San Francisco.
Software engineering salaries are heavily tiered by experience level. Entry-level engineers (0–2 years) at non-FAANG companies typically earn $75,000–$110,000 in base salary. Mid-level engineers (3–6 years) command $110,000–$150,000. Senior engineers (6–10+ years) typically earn $140,000–$200,000 in base salary. Staff/principal engineers at top companies can earn $200,000–$300,000+ in base alone, before bonuses and equity.
At FAANG companies (Meta, Apple, Amazon, Netflix, Google) and other top tech firms (Microsoft, Stripe, Airbnb, Lyft), total compensation — including base salary, annual performance bonus, and RSU vesting — pushes these numbers dramatically higher. Levels.fyi, a salary transparency site for tech professionals, shows median total compensation for senior engineers at Google exceeding $350,000/year and for staff engineers exceeding $500,000.
FAANG companies offer extraordinary cash and stock compensation, comprehensive benefits (health, dental, vision, 401k matching, free meals, gym), and career prestige. However, they also come with intense competition for promotions, large bureaucratic structures, and sometimes less autonomy over projects. A senior engineer at Google earning $350,000/year in total compensation versus a startup engineer earning $130,000 in salary plus stock options is making a bet: the FAANG engineer has certain, current compensation; the startup engineer has lower certain pay but potentially massive upside if the startup succeeds.
Startup equity is typically offered as stock options (ISOs or NSOs) rather than RSUs. Options have a strike price — the price at which you can buy shares — and only have value if the company's valuation increases above that price. The vast majority of startups fail; those that succeed can generate life-changing wealth for early employees. Evaluating startup equity requires understanding the current valuation, the preference stack, your option strike price, and the realistic probability of a successful exit.
The pandemic-era explosion of remote work fundamentally changed software engineer compensation. Companies that went fully remote (like GitLab and Automattic) often maintain standardized global pay scales. Many larger companies (Google, Apple, Meta) maintain location-based pay — meaning a San Francisco engineer earns more than the same role in Austin or Atlanta. The salary difference can be 20–35%: a role paying $180,000 in San Francisco might pay $130,000–$145,000 in Austin.
The financial calculus of location is complex. A $180,000 San Francisco salary with California state income tax (up to 13.3%) and Bay Area rent ($3,500–$4,500/month for a one-bedroom) may leave less monthly discretionary income than a $130,000 Austin salary with no state income tax and $1,800/month rent. Many engineers have found that strategic relocation to no-income-tax states (Texas, Florida, Washington) significantly improves their financial position even at a lower nominal salary.
Restricted Stock Units (RSUs) are the most common form of equity at public tech companies. A $200,000 RSU grant typically vests over 4 years (25% per year), adding $50,000/year in stock-based compensation. Unlike options, RSUs have value as long as the stock is above $0, making them less risky than options. However, RSUs are taxed as ordinary income when they vest — meaning a large vesting event can push a tech engineer into a high marginal tax bracket.
Financial planning around RSU vesting is important: many engineers sell RSUs as they vest to avoid concentration risk in their employer's stock. Others hold RSUs if they believe in the company's long-term prospects. Working with a financial advisor who specializes in tech compensation (many do in Bay Area markets) can help optimize the tax treatment of stock grants.
The average is approximately $124,200/year ($59.71/hr). Senior engineers average $165,000+; FAANG engineers can earn $250,000–$500,000+ in total compensation.
Entry-level FAANG engineers earn $150,000–$200,000 total comp; senior engineers $250,000–$400,000+; staff/principal engineers can exceed $500,000 when stock vesting is included.
Yes. Many companies adjust pay for location. Moving from SF to Austin may reduce salary 20–35%, but can improve take-home pay due to lower taxes and housing costs.
RSUs vest over 4 years (typically 25%/year) and are taxed as ordinary income. A $100,000 RSU grant adds ~$25,000/year in compensation. At FAANG, equity can represent 30–60% of total comp.