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Software Development Manager Salary in the United States

How much does a Software Development Manager make in the United States?

As of October 01, 2026, the average salary for a Software Development Manager in the United States is $169,550 per year, which breaks down to an hourly rate of $82.

However, a Software Development Manager's salary can vary significantly. Here’s a look at the typical salary range:

  • Top Earners (90th percentile): $196,067
  • Majority Range (25th-75th percentile): $159,720 to $183,430
  • Entry-Level (10th percentile): $150,770
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Software Development Manager Salaries

A Software Development Manager's salary isn't a fixed number. It's shaped by several important factors. Below, we'll explore how your years of experience, geographic location, education and company size can directly affect your earning potential.

How Experience Level Affects Software Development Manager Salaries?

Experience is a primary driver of a Software Development Manager's salary. As you build your skills and take on more complex tasks, your compensation generally increases. Here's how the average salary grows at different career stages:

  • Software Developer IV (7+ years): $148,880
  • Software Developer V (7-10 years): $171,157
  • Software Development Manager (10+ years): $169,545
  • Director of Software Engineering (10+ years): $214,164
  • Executive Director of Software Engineering/Application Development (10+ years): $241,485
Job Role Years of Experience Average Salary
Software Developer IV7+ years$148,880
Software Developer V7-10 years$171,157
Software Development Manager10+ years$169,545
Director of Software Engineering10+ years$214,164
Executive Director of Software Engineering/Application Development10+ years$241,485
View as Graph

How Do Software Development Manager Salaries Vary from State to State?

Your salary can change significantly depending on where you work. States with a higher cost of living and strong industrial sectors often pay more to attract Software Development Managers. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $187,730.
  • California: $187,010.
  • Massachusetts: $184,520.

Top Paying Cities for Software Development Managers

Salaries can also vary between different cities. Major metropolitan areas or cities with a high demand for technicians often offer more competitive pay. Here are a few examples of average annual salaries in different U.S. cities:

  • San Jose: $213,850
  • San Francisco: $211,510
  • Oakland: $207,050

What Skills Can Increase a Software Development Manager's Salary?

Demanded Skills for the Role:

  • Leadership (Mentioned in 3.75% Job Postings): Knowledge of and ability to employ effective strategies that motivate and guide other members within our business to achieve optimum results.
  • Agile (Mentioned in 3.66% Job Postings): Agile is a development process where feedback is continuously gathered from users to create the best user experience.
  • Docker (Mentioned in 2.33% Job Postings): Building, running, and managing containers to deliver software quickly on various platforms.
Skills Demand Percentage
Leadership 3.75%
Agile 3.66%
Docker 2.33%
See More Skills

What skills can make your compensation higher?

Mastering certain specialized skills can lead to a significant increase in pay. Here are examples of skills and the potential impact they can have on a Software Development Manager's salary.

  • Employment Authorization: Can increase your salary by up to 4%.
  • Experimenting: Can increase your salary by up to 4%.
  • Mentoring Others: Can increase your salary by up to 4%.
Skill Salary Salary % Increase
Employment Authorization $176,332
4%
Experimenting $176,332
4%
Mentoring Others $176,332
4%
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Software Development Manager Salary by Company Size: Startups vs. Enterprise

Software Development Manager salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $189,285. While startup companies pay approximate $160,276.

Software Development Manager Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $160,276
Growth Stage 51~500 $169,472
Established 501~5000 $182,769
Enterprise 5000+ $189,285

Software Development Manager Salary by Industry: Top Paying Sectors

For Software Development Manager roles, the industry you choose can affect earning potential by as much as 55% (the gap between the highest and lowest paying industries). Data shows that the Financial Services and Aerospace & Defense sectors offer the strongest compensation, at 25% above the average. In contrast, Software Development Manager positions in Edu., Gov't. & Nonprofit or Hospitality & Leisure typically offer lower base pay, as these industries often view Software Development Manager as a support function rather than a direct revenue driver.

The top paying industries for a Software Development Manager

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Financial Services$211,938$102.025%
Aerospace & Defense$203,460$98.020%
Internet$203,460$98.020%
Energy & Utilities$194,982$94.015%
Pharmaceuticals$194,982$94.015%

How Education impacts a Software Development Manager's Salary?

Your level of education can impact your salary potential. While many Software Development Managers enter the field with a Bachelor's Degree degree, higher education can lead to more specialized and higher-paying roles.

According to our 100% employer-reported salary data, the median salary for a Software Development Manager with a Bachelor's Degree is between $153,627 and $162,151).

Software Development Manager Salaries by Degree Level

Typical Education for Software Development Manager
Degree Level % of user with this level of education
No Diploma 0.3%
High School 2.6%
Associates 1.4%
Bachelors 45.9%
Masters 45.3%
Doctorate 4.6%
View as Graph

Software Development Manager Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Software Development Manager's annual salary breaks down can help with budgeting. Below, you can see the average hourly rate, weekly pay, and monthly pay for this role. Use the buttons to switch between different pay periods.

Last Updated on October 01, 2026
$159,720
Average $169,550/year
$183,430
$13,310
Average $14,129/month
$15,286
$3,072
Average $3,261/week
$3,528
$77
Average $82/hour
$88
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $183,430 $15,286 $3,528 $88
Average $169,550 $14,129 $3,261 $82
25th Percentile $159,720 $13,310 $3,072 $77

Software Development Manager Salary Growth & Career Path

Software Development Manager

Next Role

Advancement

For a Software Development Manager, the most direct path to higher earnings is advancing to the Director of Software Engineering role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $214,200 - a projected growth of 26% over your current level.

Most common benefits for Software Development Manager

  • Social Security
  • 401 (k)
  • Disability
  • Healthcare
  • Pension
  • Time Off (days)

Common company salaries for Software Development Manager

Here are companies hiring for Software Development Manager and their salaries, click below for more details.

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FAQ about Software Development Manager

1. What industry pays the highest salary for Software Development Manager?

The Financial Services industry offers the highest average compensation for Software Development Manager roles, with salaries approximately 25% above the market median.

2. What is the highest salary for a software development manager?

The highest salary for a Software Development Manager is $181,080. The salary range typically falls between $147,590 and $181,080, with a mid-point salary of $162,450. This reflects the competitive nature of the role within the software development field.

3. Who earns more software developer or manager?

The salary comparison between Software Development Managers and Software Developers can vary based on experience, location, and company size. For Software Development Managers, the salary ranges from $147,590 to $181,080, with a mid-salary of $162,450. Typically, Software Development Managers earn more than Software Developers, especially at higher levels.

4. What is the highest paying manager position?

The highest paying manager position is a Software Development Manager, with a salary range that starts at $147,590, has a mid-point of $162,450, and can go up to $181,080. This role typically involves overseeing software development teams, ensuring project success, and aligning technical strategies with business goals.

5. Are software managers in demand?

Yes, software managers are in high demand, with employment projected to grow 17% from 2023 to 2033, significantly outpacing the average for all occupations. This demand is reflected in competitive salaries, with a minimum of $147,590, a mid-range of $162,450, and a maximum of $181,080, highlighting the value of skilled professionals in this field.

6. What is the highest salary of software developer in USA?

The highest salary for a Software Development Manager in the USA is $181,080, with a minimum salary of $147,590 and a mid-range salary of $162,450. This reflects the competitive nature of the tech industry, where experienced professionals can command significant compensation.

7. What is the role of a development manager?

A development manager directs product development and key business initiatives, scheduling and delegating tasks while serving as a liaison with customers and executives. The salary for this role typically ranges from $147,590 to $181,080, with a midpoint of $162,450, reflecting the importance and responsibility of the position.

Where Does Our Salary Data Come From?

Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.

We offer detailed salary information across multiple percentiles for your reference. (Click here to learn Why the Salary Midpoint Formula Is Crucial for Achieving Pay Equity.)

With the most extensive online, real-time compensation data available, Salary.com helps you pinpoint your exact pay target.

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