Engineering Career Progression: Understanding Compensation at Each Career Stage

In early 2025, a few Levels.fyi threads started noting something interesting: the gap between FAANG total compensation and “other tech” was narrowing slightly at senior and staff levels, while actually widening at junior levels. Whether that trend held into 2026 is something I’m genuinely uncertain about, but the underlying data points are worth unpacking.

Software engineer compensation is one of the most publicly tracked salary landscapes in any profession, yet the numbers still confuse people because they conflate base salary with total compensation. They’re not the same thing, especially above mid-level.

What “total compensation” actually means

Base salary is the cash you receive regardless of stock price or company performance. Total compensation (TC) adds the annualized value of equity grants (RSUs or options) plus cash bonus. At FAANG-tier companies, equity routinely makes up 40% to 60% of TC at the senior level and above.

This matters enormously when comparing offers. A $180,000 base at Google and a $180,000 base at a Series B startup are not comparable packages. The Google offer likely includes $200,000+ in annual RSU value at senior level. The startup offer may include options worth nothing, something, or a lot, depending on what happens over the next 5 years. Comparing base-to-base is a trap that costs engineers real money.

Entry level: the widest range in engineering

The BLS Occupational Outlook for software developers puts the national median salary at around $132,000 as of their most recent data, but that figure includes everyone from a junior developer at a regional firm to a senior engineer at a tech company. It flattens the distribution.

For a new grad at a FAANG or FAANG-adjacent company, entry-level TC in 2026 runs roughly $180,000 to $220,000 in high cost-of-living markets. At non-FAANG tech companies, the range is more like $80,000 to $130,000 depending heavily on geography and company stage. The 2024 Stack Overflow Developer Survey found a median U.S. developer salary of around $110,000, which aligns with the “broader tech” picture outside of top-of-market firms.

Geography still moves the number significantly. An entry-level engineer in Austin or Austin-remote might earn $95,000; the same role on a team in the Bay Area that hasn’t gone fully remote might be $30,000 to $40,000 higher.

Mid-level: where most engineers spend most of their careers

Mid-level (roughly 2 to 5 years of experience, depending on company) is the most populated band in software engineering. It’s also where the FAANG-vs-other gap becomes most pronounced on a TC basis.

FAANG mid-level TC typically falls in the $280,000 to $340,000 range in high cost-of-living markets. Non-FAANG tech companies run $130,000 to $200,000. Regional companies and non-tech employers might pay $100,000 to $150,000 for comparable experience.

Mid-level is also where a lot of engineers stall. The move from mid to senior isn’t automatic with tenure. Companies differ significantly on what they require, but the common thread is scope: owning a project end-to-end, making design decisions that hold up under review, mentoring someone else meaningfully. Years of service don’t produce that. The work does.

Senior and staff levels: compensation gets complicated

Senior engineer TC at FAANG is commonly reported in the $400,000 to $550,000 range when equity is included. At other well-funded tech companies, $180,000 to $320,000 is a reasonable band. At staff level, FAANG TC ranges from $530,000 to $800,000 and up, with equity dominating the package.

Only about 10% to 15% of engineers reach staff level, by most estimates from Levels.fyi data. The number who reach principal or distinguished fellow roles is much smaller, probably under 2% of working engineers. The compensation at those levels is real, but the path is longer and less predictable than most early-career engineers expect.

One opinion that might be wrong: I think the staff-level title is increasingly being awarded more liberally at post-Series C startups as a retention tool, without the compensation to match. If you’re negotiating a staff title at a non-FAANG company, I’d focus hard on the equity refresh schedule, not just the title.

What actually moves the number at any level

Three things, roughly in order of impact:

  • Company tier and funding stage. Public profitable tech company vs. pre-IPO growth startup vs. enterprise software vs. regional employer. These tiers matter more than negotiation tactics.
  • Negotiation itself. The first offer is rarely the best offer. Having a competing offer, or a credible competing offer, is the single most reliable lever. Engineers who negotiate their compensation offers earn meaningfully more over a career than those who don’t, simply by compound effect.
  • Location or location policy. Remote roles with location-adjusted pay can still pay Bay Area rates if you can find a company without geographic banding. These are fewer than they were in 2021, but they still exist.

Years of experience matters less than most engineers think, past the first 3 to 4 years. What matters is the level you’re hired at, which is determined by what you can demonstrate in an interview, not what your LinkedIn says.

If you’re preparing for the interviews that determine which compensation band you land in, Craqly’s AI interview copilot can help you practice the system design and behavioral rounds where leveling decisions actually happen. Getting leveled as a senior rather than mid-level at a FAANG company is worth more than most negotiation tactics.

The numbers above are real, but ranges this wide are almost useless without a specific company, location, and level in mind. Do the research on Levels.fyi for your specific target. The ranges here are a starting frame, not a negotiation anchor.

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