As of July 01, 2026, the average salary for a Tool Design Engineer IV in the United States is $125,220 per year, which breaks down to an hourly rate of $60.
However, a Tool Design Engineer IV's salary can vary significantly. Here’s a look at the typical salary range:
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A Tool Design Engineer IV'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.
Experience is a primary driver of a Tool Design Engineer IV'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:
| Job Role | Years of Experience | Average Salary |
|---|---|---|
| Tool Design Engineer II | 2-4 years | $90,691 |
| Tool Design Engineer III | 4-7 years | $103,275 |
| Tool Design Engineer IV | 7+ years | $125,220 |
| Tool Design Engineer V | 7-10 years | $147,641 |
| Tool Design Engineering Manager | 10+ years | $152,926 |
What Am I Worth?
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 Tool Design Engineer IVs. For example, consider the average annual salaries in these key locations:
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Planning | 7.69% |
| Open Access | 3.85% |
| Feasibility Studies | 1.92% |
| Skill | Salary | Salary % Increase |
|---|---|---|
|
Leadership
|
$138,994 |
11%
|
|
Exploration
|
$133,985 |
7%
|
|
Commitment
|
$133,985 |
7%
|
|
Lean Manufacturing
|
$131,481 |
5%
|
|
Problem Solving
|
$131,481 |
5%
|
|
Analysis
|
$131,481 |
5%
|
Tool Design Engineer IV salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $140,058. While startup companies pay approximate $118,447.
| Company Size | Employees | Average Salary |
|---|---|---|
| Startup | 1~50 | $118,447 |
| Growth Stage | 51~500 | $125,276 |
| Established | 501~5000 | $135,252 |
| Enterprise | 5000+ | $140,058 |
For Tool Design Engineer IV roles, the industry you choose can affect earning potential by as much as 40% (the gap between the highest and lowest paying industries). Data shows that the Aerospace & Defense and Financial Services sectors offer the strongest compensation, at 20% above the average. In contrast, Tool Design Engineer positions in Transportation or Retail & Wholesale typically offer lower base pay, as these industries often view Tool Design Engineer IV as a support function rather than a direct revenue driver.
| Industry Sector | Average Annual Salary | Average Hourly Rate | Pay vs.Avg |
|---|---|---|---|
| Aerospace & Defense | $150,264 | $72.0 | 20% |
| Financial Services | $150,264 | $72.0 | 20% |
| Internet | $150,264 | $72.0 | 20% |
| Pharmaceuticals | $150,264 | $72.0 | 20% |
| Software & Networking | $150,264 | $72.0 | 20% |
Your level of education can impact your salary potential. While many Tool Design Engineer IVs enter the field with a Associate'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 Tool Design Engineer IV with a Associate's Degree is between $122,672 and $131,084).
Tool Design Engineer IV Salaries by Degree Level
| Degree Level | % of user with this level of education |
|---|---|
| No Diploma | 18.2% |
| High School | 18.2% |
| Associates | 36.4% |
| Bachelors | 45.5% |
| Masters | 0.0% |
| Doctorate | 0.0% |
Understanding how a Tool Design Engineer IV'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 July 01, 2026For a Tool Design Engineer IV, the most direct path to higher earnings is advancing to the Tool Design Engineer V role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $147,641 - a projected growth of 18% over your current level.
Salaries for a Tool Design Engineer IV can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $122,139 in 2023 to around $120,725 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Tool Design Engineer IV salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
View More
|
| 2023 | $122,139 |
| 2024 | $121,655 |
| 2025 | $120,725 |
| 2026 |
View More
|
| 2027 |
View More
|
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A Tool Design Engineer IV's earning potential can vary widely depending on several factors, including location, industry, experience, education, and the specific employer. According to the latest salary data by Salary.com, a Tool Design Engineer IV earns the most in San Jose, CA, where the annual salary of a Tool Design Engineer IV is $157,940.
The highest pay for Tool Design Engineer IV is $141,633.
The lowest pay for Tool Design Engineer IV is $113,864.
Designs and develops tools and machinery used to facilitate and optimize manufacturing processes. Reviews product design and build requirements to determine tooling concepts, design options, testing plans, and specifications. Develops designs for fixtures, jigs, gauges, cutting and forming tools, carts, racks, and other items to support production. Utilizes Computer-Aided Design (CAD) to create accurate, complete, and concise design models and documentation to fabricate tools. Estimates costs, resource requirements, and materials required for tools. May manage the sourcing, quoting, or procurement of purchased tools. Typically requires a bachelor's degree or equivalent. Typically reports to a supervisor or manager. Work is highly independent. May assume a team lead role for the work group. A specialist on complex technical and business matters. Typically requires 7+ years of related experience.
The Aerospace & Defense industry offers the highest average compensation for Tool Design Engineer IV roles, with salaries approximately 20% above the market median.
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.)
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