The average software engineer earns $127,260/year. After hidden costs and time, the true hourly rate drops from $63.63/hr to $43.86/hr — 31% less.
The average software engineer earns $127,260/year. After hidden costs and time, the true hourly rate drops from $63.63/hr to $43.86/hr — 31% less.
Your Income
Hidden Time
Hours you work for free
Hidden Costs
Money you spend because you have a job
Gas, public transit, or rideshare
What you spend that you wouldn't at home
Tools, certifications, dry cleaning, etc.
The average software engineer earns $127,260/year, which looks like $63.63/hr on paper. After accounting for 45 minutes of daily commuting, 5 hours of weekly unpaid overtime, and work expenses like lunch and clothing, the true hourly rate drops to $43.86/hr — 31% less.
With an average 45-minute round trip commute, software engineers spend roughly $3,000/year on commute costs alone, plus 188 hours/year of unpaid commute time. That’s the equivalent of 5 full work weeks just getting to and from work.
At $127,260/year, the software engineer true hourly rate is $43.86/hr after all hidden costs and time. Whether that’s worth it depends on your alternatives — use our calculator to compare with other job offers by adjusting the salary, commute, and overtime fields.
In the tech category, software engineer salaries range from entry-level to experienced positions. The key isn’t just the salary — it’s the true hourly rate after hidden costs. Jobs with lower salaries but shorter commutes and less overtime can sometimes pay better per actual hour worked.