As of November 01, 2025, the average salary for a Cost Reduction Engineer in the United States is $66,554 per year, which breaks down to an hourly rate of $32.
However, a Cost Reduction Engineer's salary can vary significantly. Here’s a look at the typical salary range:
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A Cost Reduction Engineer'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 and company size can directly affect your earning potential.
Experience is a primary driver of a Cost Reduction Engineer'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:
| Levels | Salary |
|---|---|
| Entry Level Cost Reduction Engineer | $64,299 |
| Intermediate Level Cost Reduction Engineer | $64,966 |
| Senior Level Cost Reduction Engineer | $65,900 |
| Specialist Level Cost Reduction Engineer | $67,358 |
| Expert Level Cost Reduction Engineer | $68,604 |
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 Cost Reduction Engineers. For example, consider the average annual salaries in these key locations:
Understanding how a Cost Reduction Engineer'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 November 01, 2025Salaries for a Cost Reduction Engineer can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $65,592 in 2023 to around $63,682 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Cost Reduction Engineer salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
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|
| 2023 | $65,592 |
| 2024 | $65,941 |
| 2025 | $63,682 |
| 2026 |
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|
| Median | % of Total | |
|---|---|---|
| Base Salary | $66,554 | 62.3% |
| Bonus | $10,126 | 9.5% |
| Median | % of Total | |
|---|---|---|
| Social Security | $5,837 | 5.5% |
| 401K/403B | $3,738 | 3.5% |
| Disability | $1,221 | 1.1% |
| Healthcare | $6,452 | 6.0% |
| Pension | $3,204 | 3.0% |
| Time Off | $9,684 | 9.1% |
| Total Compensation | $106,816 | 100% |
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Compensation PlanningHere are companies hiring for Cost Reduction Engineer and their salaries, click below for more details.
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