5 ms·
Here are real numbers. Background: Average of 10 programmers who range ages 22-25 and are 2-3 years out of college. Base: 140k Bonus: 30k Equity: ~60k Total:
by smivan 8y ago
Here are real numbers.
Background: Average of 10 programmers who range ages 22-25 and are 2-3 years out of college.
Base: 140k
Bonus: 30k
Equity: ~60k
Total: $230k year pretax.
Taxes:
- 33% federal bracket
- 10% state bracket
- 7% FICA+Medicaid.
(50% total)
Brackets listed are marginal rates, actual rates are noted here: https://smartasset.com/taxes/california-tax-calculator#p9c7YRLmHn https://smartasset.com/taxes/california-tax-calculator#p9c7Y...
Let's run the math
- $230k comp - $83k taxes = $147k/year
- assuming no other expenses, no retirement savings and no other income, that's 147/12 = $12.2k/mo, post tax. At this point $5,500/rent is easy.
Realistically, the breakdown is more like this:
$147k post tax income
- $20k retirement
- $18k food/drinks ($1500/mo in SF is reasonable)
- $10k car payments
- $10k insurance/misc
= $89k/year
$89k / 12 = $7,400/mo post tax and expenses. A $5,500 rent is still doable, but again extremely stupid because you aren't saving.
- ovi256 8y ago> Taxes: ... (50% total) > run the math - $230k comp - $83k taxes Please fix this inconsistency.
- vertex-four 8y agoIt’s not an inconsistency because of how taxes work - the first $x gets taxed at a lower rate. Most of most people’s income is not taxed at their marginal tax rate.
- gbustomtv5 8y ago20% bonus is not what mid engineers get. 60k equity is probaly over 4 years not 1. 60k over 4 years is actually close to average equity comp for 140k comp bracket. You are off by 50k. Signon bonuses can bring total comp to 200-210k. Background: I write eng offers and know comp brackets.
- smivan 8y agoI do not doubt your work experience, but I would like to respectfully point out that the data I have for those ~10 engineers does indeed match to the numbers I have presented. Either way, with $200k salary the rent mentioned in the article is doable.