Software Development Manager Average Salary & Hourly Rate in 2025
The role of a software development manager has become increasingly important in today’s technology-driven world. Software development managers are responsible for overseeing and guiding a team of software developers and engineers to ensure projects are completed efficiently, within budget, and aligned with business goals.
As the tech industry continues to grow, the demand for skilled professionals in this position has soared. This article will explore the average salary for software development managers, factors influencing their earnings, and more.
An Overview of Salaries Software Development Managers
As of March 27, 2025, the average annual salary for a software development manager in the United States is approximately $163,250. Salaries typically range between $134,727 and $199,014, depending on experience and skill level.
| Percentile | Average Annual Salary |
|---|---|
| 10% Percentile | $134,727 |
| 25% Percentile | $148,320 |
| 50% Percentile (Median) | $163,250 |
| 75% Percentile | $181,970 |
| 90% Percentile | $199,014 |
The U.S. Bureau of Labor Statistics (BLS) reports that software development manager salaries can vary widely depending on the industry. For instance, software development managers working for software publishers earn an average of $143,210 per year, while those in the computer systems design and related services industry earn an average of $127,880 annually.
Here’s a breakdown of the average salaries for software development managers in various industries:
- Software Publishers: $143,210 per year
- Manufacturing: $138,100 per year
- Finance and Insurance: $132,900 per year
- Management of Companies and Enterprises: $131,370 per year
- Computer Systems Design and Related Services: $127,880 per year
Software Development Manager Salary: Hourly, Weekly, Monthly, and Yearly Breakdown
The average salary for software development managers can be broken down into hourly, weekly, monthly, and yearly amounts. According to Salary.com, the average rate for software development managers in the United States is approximately $78 per hour or $13,604 per month.
- Average salary per hour: $78
- Average salary per week: $3,139
- Average salary per month: $13,604
- Average salary per year: $163,250
As with many roles, software development manager salaries in the U.S. can vary due to key factors such as geographic location, years of experience, and education. These variables play a critical role in shaping the earning potential for professionals in this field.
How Experience Impacts Software Development Manager Salaries
Experience plays a crucial role in determining how much a software development manager can expect to earn. Entry-level positions typically start with a salary around $154,813 per year, while those with 5 to 8 years of experience can see their salary rise to around $158,728 or more.
Based on the data from Salary.com, the salary of a software development manager varies by experience level. Here’s a breakdown of how salaries increase with experience:
- Entry-Level Software Development Manager: $154,813
- Intermediate-Level Software Development Manager : $155,466
- Mid-Level Software Development Manager : $156,988
- Senior-Level Software Development Manager : $158,728
- Expert-Level Software Development Manager : $162,136
State-by-State Breakdown of Average Salaries for Software Development Manager
It can also be noted that each U.S. state has different average salaries for software development managers due to factors such as the cost of living, industry performance, and demand.
Based on Salary.com data, the District of Columbia offers the highest average annual salary for software development managers in the United States at $193,076. The next highest-paying states are California and New York, with $186,803 and $180,053 per year, respectively.
Here’s a breakdown of the average salaries for software development managers in a few top-paying states:
| State | Average Salary |
|---|---|
| Alaska | $177,780 |
| Alabama | $150,030 |
| Arkansas | $148,720 |
| Arizona | $159,010 |
| California | $180,070 |
| Colorado | $166,520 |
| Connecticut | $175,330 |
| District of Columbia | $181,700 |
| Delaware | $165,700 |
| Florida | $155,090 |
| Georgia | $157,870 |
| Hawaii | $170,600 |
| Iowa | $156,230 |
| Idaho | $152,320 |
| Illinois | $167,010 |
| Indiana | $158,420 |
| Kansas | $155,420 |
| Kentucky | $153,620 |
| Louisiana | $155,250 |
| Massachusetts | $177,620 |
| Maryland | $168,310 |
| Maine | $158,850 |
| Michigan | $161,130 |
| Minnesota | $167,010 |
| Missouri | $155,580 |
| Mississippi | $145,620 |
| Montana | $152,480 |
| North Carolina | $156,720 |
| North Dakota | $161,620 |
| Nebraska | $153,790 |
| New Hampshire | $166,030 |
| New Jersey | $178,930 |
| New Mexico | $150,520 |
| Nevada | $163,910 |
| New York | $174,030 |
| Ohio | $159,660 |
| Oklahoma | $151,010 |
| Oregon | $165,870 |
| Pennsylvania | $162,930 |
| Rhode Island | $170,440 |
| South Carolina | $154,110 |
| South Dakota | $146,770 |
| Tennessee | $146,770 |
| Texas | $159,830 |
| Utah | $155,250 |
| Virginia | $163,740 |
| Vermont | $160,150 |
| Washington | $175,990 |
| Wisconsin | $161,290 |
| West Virginia | $146,930 |
| Wyoming | $156,560 |
Software Development Manager: Top Earning Cities Revealed
The top-paying cities for software development managers are typically located in tech hubs with a high concentration of software engineers and software architects. Here are some of the top cities offering high salaries:
| Top Paying Cities | Average Salary |
|---|---|
| San Jose, CA | $204,880 |
| San Francisco, CA | $207,070 |
| Oakland, CA | $199,170 |
| New York, NY | $190,680 |
| Queens Village, NY | $189,370 |
| Paramus, NJ | $188,070 |
These cities often offer higher salaries due to the concentration of technology industry companies, including tech giants like Google, Microsoft, and Facebook.
Explore Software Development Manager Benefits and Perks Beyond Salary
In addition to their salary, software development managers receive a wide range of benefits and perks. According to Salary.com, the total compensation for software development managers includes benefits such as:
- Social Security
- 401(k)/403(b) plans
- Disability insurance
- Healthcare (medical, dental, vision)
- Pension plan
- Paid Time Off (PTO)
Software Development Manager Job Description: Roles and Responsibilities
A software development manager is primarily responsible for overseeing a team of developers and engineers to ensure that software projects are completed on time, within budget, and meet the required quality standards. In addition to managing teams, the software development manager plays a crucial role in planning and executing multiple software development projects.
The job description of a software development manager includes the following responsibilities:
- Lead and manage software development teams throughout the software development life cycle (SDLC).
- Oversee the design, development, testing, and deployment of software applications.
- Collaborate with project managers, business stakeholders, and other teams to ensure the software meets business goals.
- Ensure that software development processes align with industry best practices, including Agile methodologies and quality assurance.
- Provide technical leadership, mentoring, and coaching to software engineers.
- Manage multiple priorities and ensure the timely completion of multiple software development projects.
- Stay updated with the latest technology trends and tools to enhance the team's development capabilities.
When and How to Ask for a Raise as a Software Development Manager
Here's a step-by-step process to follow to ask for a raise as a software development manager:
- Complete accredited educational programs: Enhance your skills and qualifications by completing relevant management and technical programs. Consider certifications from platforms like Udacity, Coursera, or edX to gain advanced knowledge in agile methodologies, software architecture, or cloud computing.
- Strengthen your portfolio: Build a portfolio of successful projects that demonstrate your leadership and management capabilities. Show how you have effectively managed software development teams, contributed to the software development life cycle, and led complex projects from start to finish.
- Ask for a formal meeting: Request a formal meeting with your manager or HR to discuss your performance, growth, and salary expectations. Prepare for this meeting by gathering relevant data on your team's successes.
- Present your achievements clearly and confidently: During the meeting, highlight your project management successes, particularly how you’ve effectively managed multiple software development projects, improved team performance, and delivered results on time. Be clear about how your technical leadership and management of complex projects have contributed to the success of the company.
- Be open to negotiation: Salary negotiations often involve some give-and-take. Be ready to discuss potential bonuses, stock options, or additional perks if a salary increase isn't immediately possible. Ensure that your overall compensation package reflects the value you bring to the organization.
Why Do Software Development Manager Make So Much?
Software development managers earn high salary because of several key factors. The demand for these professionals has surged as digital transformation accelerates across industries, creating a need for experienced leaders who can oversee complex projects and guide development teams. Technical expertise in areas such as Java, Python, cloud platforms, and microservices significantly boosts salaries, as these skills are crucial for managing intricate and evolving software systems.
Also, proficiency in high-demand technical skills plays a significant role in boosting software development manager salaries. For instance, expertise in Python can lead to a 9.02% salary increase, making it one of the most valuable skills.
User Interface Design also provides a strong salary boost, with a 5.42% increase, while HTML follows closely behind at a 5.13% increase.
- Software Engineering: +7.03% salary increase
- Cloud Platforms: +7.30% salary increase
- Java: +6.33% salary increase
- Python: +5.70% salary increase
- Microservices: +5.49% salary increase
- SQL: +5.47% salary increase
The Future of Software Development Managers: Job Outlook and Career Trends
The job outlook for software development managers is expected to remain strong in the coming years. As per the Bureau of Labor Statistics (BLS), employment in the field of computer science and software development is projected to grow by 22% from 2020 to 2030, much faster than the average for other occupations.
The increasing reliance on technology, particularly in industries like information technology, finance, healthcare, and entertainment, will continue to drive demand for skilled software development managers.
Furthermore, with the rise of agile methodologies and the growing complexity of software projects, there will be an ongoing need for leaders with expertise in both technical and people management skills.
