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Software startup · 14 min

Hiring the first engineers

Your first engineers will build most of what you sell. They cost a lot more than their pay, they're paid partly in ownership, and every one of them shortens your runway.

Ticket 01 · The guess

What does an engineer really cost?

A software developer's median pay is $135,980/yearbls.gov ·2025. What does the company pay in a year for that engineer, all in?

$140,000
$100,000$250,000
Words to know

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Tell us what looks off. No name or email needed.

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0 / 1000

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Sources and every number (2)

Sources

  • Occupational Outlook Handbook: Software Developers, Quality Assurance Analysts, and Testers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Occupational Outlook Handbook: Sales Engineers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025

Every number

  • $135,980/yearbls.gov ·2025 · Median yearly pay for software developers, all industries, May 2025.
  • $162,136example (example number: Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.) · Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.
  • $124,900/yearbls.gov ·2025 · Median yearly pay for sales engineers, all industries, May 2025.
  • $149,876example (example number: Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.) · Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.
  1. Lessons›
  2. Industries›
  3. Software startup
  • ·Before this: Burn rate and runway
  • ·Next: Paying for growth
  • ·Free guide: How software companies make money
Skip to the lesson
Back to the home page and map, from TryOwning · Software startup · Lesson 3
Part 1 of 3Part 1 of 3, 0 done

Software startup · 14 min

Hiring the first engineers

Your first engineers will build most of what you sell. They cost a lot more than their pay, they're paid partly in ownership, and every one of them shortens your runway.

Ticket 01 · The guess

What does an engineer really cost?

A software developer's median pay is $135,980/yearbls.gov ·2025. What does the company pay in a year for that engineer, all in?

$140,000
$100,000$250,000
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (2)

Sources

  • Occupational Outlook Handbook: Software Developers, Quality Assurance Analysts, and Testers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Occupational Outlook Handbook: Sales Engineers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025

Every number

  • $135,980/yearbls.gov ·2025 · Median yearly pay for software developers, all industries, May 2025.
  • $162,136example (example number: Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.) · Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.
  • $124,900/yearbls.gov ·2025 · Median yearly pay for sales engineers, all industries, May 2025.
  • $149,876example (example number: Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.) · Worked out from the pay, the cited tax rates and health premium, and the examples: everything below added up.
  1. Lessons›
  2. Industries›
  3. Software startup
  • ·Before this: Burn rate and runway
  • ·Next: Paying for growth
  • ·Free guide: How software companies make money