How Much Does a Software Development Director Make? (2025)
A software development director, or software engineering director, is responsible for establishing policies and procedures that produce high-quality software products and services. They direct and oversee the software engineering function in developing, releasing, and maintaining software applications/operating systems according to business needs.
There is no specific job outlook for software development directors in the US Bureau of Labor Statistics. However, the overall employment and career of software developers, quality assurance analysts, and testers are expected to increase by 15% in the years 2024 to 2034, with an estimated 129,200 job openings.
Read this salary guide and explore software development director salary insights, responsibilities of this career, and factors that affect their compensation, and how to become one.
What Does a Software Development Director do?
A software development director develops and implements software development strategies to support business objectives and innovation. They supervise all software development activities, such as designing, coding, testing, and establishment.
Here are more detailed roles and responsibilities of software development directors:
- They lead and direct the software development team in innovating new software products and improving existing ones.
- They coordinate with product management to establish product requirements and check technical feasibility.
- They collaborate with internal teams and external partners for effective and successful project execution.
- They make sure that the software products are quality and reliable through thorough testing and quality assurance and control.
- They execute best practices and standards to maintain excellence in software development.
- They stay updated with the latest technologies and trends for business advancement and innovation.
- They oversee the software development budget and spend to confirm efficient resource allocation.
- They work closely with senior executives for software development insights and recommendations.
What is a Software Development Director Salary Overview?
As of October 28, 2025, the average salary for software development directors in the United States is $214,143 annually. The range is from $198,000 to $238,234, with earnings mostly between $205,693 and $226,753.
The average monthly rate is $17,845 with a range from $16,500 to $19,853, while the average hourly rate is $103 with a range from $95 to $115.
2025 Software Development Director Salary: $214,143 per year ($103 per hour)
Depending on the percentile, a software development director salary with bonus ranges from $256,343 to $202,487, with $322,922 as the average value.
| Percentile | Salary + Bonus |
|---|---|
| 10th Percentile | $202,487 |
| 25th Percentile | $228,153 |
| 50th Percentile | $256,343 |
| 75th Percentile | $291,193 |
| 90th Percentile | $322,922 |
The average total compensation for software development directors, including the core compensation and benefits, is $340,007. The median base salary for software development directors makes up 63.0% of the total compensation, while benefits like social security, health insurance, retirement plan, and paid time off make up 19.2%.
| Core Compensation | ||
|---|---|---|
| Median | % of Total | |
| Base Salary | $214,143 | 63.0% |
| Bonus | $42,200 | 12.4% |
| Value of Benefits | ||
| Social Security | $14,635 | 4.3% |
| 401K/403B | $10,500 | 3.1% |
| Disability | $5,127 | 1.5% |
| Healthcare | $8,352 | 2.5% |
| Pension | $13,500 | 4.0% |
| Time Off | $31,550 | 9.3% |
| Total Compensation | $340,007 | 100% |
What Can Affect Software Development Director Salaries?
Factors, like experience level, geographic location, education, company size, and skills, can affect the salary for software development directors. Here are the effects of these factors in terms of annual compensation.
By Experience Level
The salary for software development directors varies depending on the experience level. An entry-level software development director pay is $208,962, while an expert-level with over 8 years of experience can expect $213,275 on average.
| Levels | Salary |
|---|---|
| Entry Level Software Development Director | $208,962 |
| Intermediate Level Software Development Director | $209,723 |
| Senior Level Software Development Director | $210,738 |
| Specialist Level Software Development Director | $212,006 |
| Expert Level Software Development Director | $213,275 |
By Geographic Location
Key factors why geographic location affects salaries in the United States are the local economy, cost of living, and industry presence. Here are the hot cities in the US for software development directors:
| Cities | 25th Percentile | 50th Percentile | 75th Percentile |
|---|---|---|---|
| San Francisco, California | $256,883 | $267,443 | $283,183 |
| Washington, District of Columbia | $227,743 | $237,103 | $251,063 |
| Miami, Florida | $197,633 | $205,753 | $217,863 |
| Chicago, Illinois | $212,563 | $221,303 | $234,323 |
| Boston, Massachusetts | $229,403 | $238,833 | $252,893 |
| New York, New York | $238,373 | $248,173 | $262,783 |
| Dallas, Texas | $203,123 | $211,473 | $223,923 |
According to Salary.com data, San Francisco, CA has the most competitive pay among the hot cities, with salaries ranging from $256,883 to $283,183, while Miami, FL has the least, with salaries ranging from $197,633 to $217,863.
By Skills
Compensation for software development directors gets higher with more acquired skills. High-demand competencies also respond with higher earning potential.
Data from Salary.com's Real-time Job Posting Salary Data Report suggests that software development directors with skills in A/B Testing can experience the highest pay increase at 6.60%, followed by Non-relational Database at 6.23%.
Meanwhile, the most in-demand skills are Cloud Platform and Extract, Transform, Load (ETL) at 10.90% and 10.80%, respectively. Some highly compensated skills also include Infrastructure as Code (IaC), Mobile Application QA, Java, and Cloud Computing.
| Skills | Demand | Salary Increase |
|---|---|---|
| A/B Testing | 10.40% | +6.60% |
| Non-relational Database | 10.10% | +6.23% |
| Extract, Transform, Load (ETL) | 10.80% | +5.97% |
| Cloud Computing | 10.20% | +5.81% |
| Java | 10.30% | +5.68% |
| Infrastructure as Code (IaC) | 10.70% | +5.67% |
How to Become a Software Development Director
To become a software development director, one needs to meet the educational, experience, abilities, and certification requirements. Here are ways and tips on how to do that:
Education
Becoming a software development director starts by getting a bachelor's degree in computer science, software engineering, and information technology. Aside from a formal degree, some certifications like Certified ScrumMaster (CSM), Microsoft, Project Management Professional (PMP), or ITIL 4 Managing Professional can help in advancing to a directorship position.
Experience
The position of software development director comes with extensive practical work experience. The role usually requires 7 to 10 years of experience in entry-level to mid-level positions, such as software engineer, quality assurance analyst, technical lead, and project manager. Then, 3 to 5 years of managerial experience is needed to verify technical leadership skills.
Skills
Competencies that are helpful in advancing to a software development director role include strong leadership and management abilities, excellent communication and interpersonal skills, deep knowledge of software development methodologies and practices, proficiency in programming languages and technologies, and experience in project management and delivery.
What are the FAQs about the Software Development Director?
Here are some common questions about the compensation for software development director:
Is it possible to make 300K as a software engineer?
Yes, it is possible to make 300K as a software engineer. For example, if your position in the company is a software development director, you can earn up to $340,007 in total compensation, which includes base salary, bonuses, and benefits packages like social security, paid time off, and healthcare.
What is the average salary for a software development director in the United States?
The average salary for software development directors in the United States is $214,143 annually. The range is from $198,000 to $238,234, with earnings mostly between $205,693 and $226,753. The average monthly rate is $17,845 with a range from $16,500 to $19,853, while the average hourly rate is $103 with a range from $95 to $115.
How much does a software development director with 10 years of experience earn?
A software development director with 10 years of experience can earn up to $213,275, compared to an entry-level position with $208,962, intermediate level with $209,723, senior level with $210,738, and specialist level with $212,006 per year.
