Ask HN: Hourly Rate for Principal Software Engineer?

#1

Post by halis » Fri, Sep 01, 2023, 8:27 PM UTC

I'm in the Midwest and I've found a Principal Software Engineer that is interested in hiring me as an hourly contractor.

I've worked for this team before as a Lead Software Developer (I was an hourly contractor then as well) and I did indeed lead a team of other developers. They were thrilled with me, the pay was good so I worked my butt off for them.

This was circa 2017. So the question is, how much would I charge today with more experience and the better job title?

I don't really feel comfortable disclosing hourly rate, so if you could just use example numbers or as a percentage I'd appreciate it.

The only thing that I know for certain is I'm not charging less!

Re: Ask HN: Hourly Rate for Principal Software Engineer?

#2

Post by cratermoon » Fri, Sep 01, 2023, 9:18 PM UTC

You can take salary and divide by 2080 to get hourly. If your contract is a 1099 b2b, you can easily double that.

Re: Ask HN: Hourly Rate for Principal Software Engineer?

#3

Post by joezydeco » Fri, Sep 01, 2023, 9:50 PM UTC

Inflation index from 2017 is 1.25. And this a promotion.

I'd say take your 2017 hourly rate and double it. If they act all hurt on that number, then they should hire you FT with benefits.

Re: Ask HN: Hourly Rate for Principal Software Engineer?

#4

Post by halis » Fri, Sep 01, 2023, 10:41 PM UTC

cratermoon wrote: post #2

You can take salary and divide by 2080 to get hourly. If your contract is a 1099 b2b, you can easily double that.

Thank you. Based on the numbers this is a really helpful way to look at things.

Re: Ask HN: Hourly Rate for Principal Software Engineer?

#5

Post by halis » Fri, Sep 01, 2023, 10:43 PM UTC

joezydeco wrote: post #3

Inflation index from 2017 is 1.25. And this a promotion. I'd say take your 2017 hourly rate and double it. If they act all hurt on that number, then they should hire you FT with benefits.

Lol I love the sentiment! If I could get double I would definitely go this route. But my goal is to get this contract, work hard and hopefully get the full-time offer after a time.

Re: Ask HN: Hourly Rate for Principal Software Engineer?

#6

Post by joezydeco » Sat, Sep 02, 2023, 4:57 PM UTC

halis wrote: post #5

joezydeco wrote: post #3

Inflation index from 2017 is 1.25. And this a promotion. I'd say take your 2017 hourly rate and double it. If they act all hurt on that number, then they should hire you FT with benefits.

Lol I love the sentiment! If I could get double I would definitely go this route. But my goal is to get this contract, work hard and hopefully get the full-time offer after a time.

Then you need to adjust from there to figure out what will get the company to bite.

I also don't know your circumstances outside of work. If you're 1099'ing it, how are you paying for health insurance and self-employment taxes? Do you have a family to support or are you single and/or living with your parents?

All of that matters and makes trying to gauge FT-vs-1099 compensation in the market a little hard.