Ask a software engineer what they earn and you will usually get three different numbers. There is the base salary printed on the offer letter, the bonus that shows up once a year, and the stock grant that vests slowly over four years. None of those alone tells you what the job is really worth. This software engineer salary calculator adds all three together — base salary, target annual bonus, and annualized RSU equity — to produce your true total compensation (TC), then compares it against the mainstream L3, L4 and L5 market bands so you know whether your offer is below, at, or above market.
Adjust the sliders and every figure updates instantly. Pick your engineering level and the result card shows the median benchmark for that band side by side with your own number, plus the monthly and hourly equivalent.
How to Use
- Enter your Base Salary — the fixed annual amount before any bonus or equity. This is the number on your offer letter under "annual base."
- Set your Target Annual Bonus as a percent of base. Most large tech bands land between 10% and 25%; performance years can push it higher, down years lower.
- Type your Annualized RSU / Equity. Take your total stock grant and divide it by the number of years it vests — for example, a $200,000 grant over four years is $50,000 per year. If you have no equity, leave it at zero.
- Choose your Engineering Level (L3, L4, or L5). This drives the benchmark comparison shown on the result card.
- Optionally add your Years of Experience. This is informational only and helps you sanity-check that the level you picked matches the typical experience range.
The result card breaks the compensation into base, bonus and vested equity, then shows your total annual compensation (the highlighted number), the market benchmark for your level, the gap between the two, and your monthly and hourly equivalent figures.
How Total Compensation Is Calculated
Software pay is deliberately stacked in three layers:
- Base salary — guaranteed, paid in equal paychecks through the year.
- Target annual bonus — a performance-based cash payout, expressed as a percent of base.
- RSU / equity — company stock that vests over time and becomes part of your cash-equivalent pay once it lands.
The math is straightforward:
Total Compensation = Base Salary + (Base Salary × Bonus%) + Annualized RSU
The level benchmarks used on this page reflect widely reported median total-comp bands for mainstream Big-Tech individual contributors: L3 ≈ $180,000, L4 ≈ $250,000, and L5 ≈ $350,000. These are median figures, so half of engineers at that level earn more and half earn less. Geographic location, company, and specialty (machine learning, distributed systems, security) can move the band up or down by tens of thousands of dollars.
Why Equity Belongs in the Number
It is tempting to compare offers on base salary alone, but that is how engineers leave money on the table. A $180,000 base with a $30,000 bonus and $60,000 a year in vesting RSUs is a $270,000 package — comfortably above the L4 median — even though the base alone looks ordinary. Conversely, a high base with no equity can trail a slightly lower base that comes with a four-year stock grant. Always compare the three-layer total, not the headline.
Equity is also the piece that changes. Stock price moves, grants refresh on promotion, and a new-hire grant vests unevenly (often 5%/15%/40%/40% rather than evenly). This calculator annualizes a grant evenly for a steady-state view; use it to compare offers on like terms, then layer in your company's actual vesting cliff when you negotiate.
Examples
Example 1 — A typical L4 offer. An engineer with 4 years of experience is offered a $180,000 base, a 20% target bonus, and a $50,000 annualized RSU grant. The bonus works out to $36,000, so total compensation is $266,000. Against the L4 benchmark of $250,000, that is $16,000 above median — a solid, slightly above-market package.
Example 2 — An L3 just out of school. A new grad accepts a $150,000 base, a 10% bonus target, and $20,000 a year in RSUs. Bonus is $15,000 and total comp is $185,000, just above the $180,000 L3 benchmark. The monthly equivalent is about $15,400 before tax.
Example 3 — A senior L5 package. An L5 staff-track engineer negotiates a $300,000 base, a 40% target bonus, and a $1,000,000 annualized equity package. The bonus is $120,000 and total compensation reaches $1,420,000, far above the $350,000 L5 median — a top-of-band, senior-leadership total that is common only at the highest-paying public tech companies.
FAQ
What is included in total compensation for a software engineer?
Total compensation (TC) is the sum of three parts: your fixed base salary, your target annual cash bonus (a percent of base), and your annualized RSU or stock equity (total grant divided by its vesting years). Sign-on bonuses are one-time and usually excluded from recurring TC, though you can add them in year one when comparing offers.
What is the difference between L3, L4 and L5 salary?
These are common Big-Tech leveling labels. As median total-comp bands, L3 is roughly $180,000, L4 about $250,000, and L5 around $350,000. L3 covers new grads and early-career engineers, L4 is the mid-level senior IC, and L5 is a senior/staff-level individual contributor with significant scope. Exact numbers vary by company, city and specialty.
Should I compare offers on base salary or total compensation?
Always compare total compensation. Base salary is only the guaranteed floor; equity and bonus can make up 30–60% of a strong tech package. Two offers with similar base salaries can differ by $100,000 or more once RSU grants and bonus targets are included.
How do I annualize an RSU grant?
Take the total grant value and divide it by the number of years it vests. A $200,000 grant vesting over four years contributes $50,000 per year to your steady-state compensation. Remember that new-hire grants often vest unevenly (for example 5% in year one and larger chunks later), so the early years look lower than the long-run average.
Does location change a software engineer's salary?
Yes, substantially. The L3/L4/L5 bands on this page reflect major tech hubs. Cost-of-living adjustments can lower total comp by 10–30% in lower-cost regions, while specialization in machine learning or infrastructure and a competitive market can push bands higher. Always benchmark against your specific city and company.
Is my bonus guaranteed every year?
No. The bonus figure here is your target — the amount you earn at an "expected" rating. Actual payouts vary with company and individual performance: strong years can exceed target, weak years can fall short or vanish. Base salary is guaranteed; bonus and equity are at-risk components of the package.
Disclaimer
This software engineer salary calculator is provided for informational purposes only and does not constitute financial, tax, legal, or compensation advice. Total-comp estimates are based on the inputs you enter and a simple base-plus-bonus-plus-equity formula; level benchmarks are approximate medians and vary by company, geography, specialty, and market conditions. RSU values depend on fluctuating stock prices and your company's vesting schedule. Always confirm your actual offer, grant terms, and tax treatment directly with your employer and a qualified financial advisor before making career or compensation decisions.