Is $73,000 a Good Salary? Here’s How to Tell

Whether a $73,000 salary is considered “good” depends entirely on an individual’s unique financial landscape and personal circumstances. There is no single benchmark that applies to everyone, as numerous factors influence the actual value and purchasing power of any given income. Evaluating a salary requires a comprehensive understanding of these various elements, extending beyond the numerical figure.

Understanding the Impact of Location

Geographical location plays a significant role in determining the real value of a $73,000 salary. The concept of “cost of living” (COL) varies considerably across different regions, cities, and even neighborhoods within the United States. Housing expenses, including rent or mortgage payments, often represent the largest portion of a household budget. These costs can fluctuate dramatically, making a $73,000 salary feel ample in one area and insufficient in another. For instance, the average annual cost of living for a U.S. household was approximately $77,280 in 2023.

Beyond housing, other essential expenses contribute to the overall cost of living. Transportation, utilities, and grocery prices also exhibit wide disparities across the country. Major metropolitan areas typically have a higher cost of living compared to suburban or rural locales, influenced by factors such as demand and local wage rates. A salary of $73,000 might comfortably cover basic expenses and allow for savings in a lower COL area, but it could struggle to meet even fundamental needs in a high-COL city.

Considering Industry and Experience

The industry and an individual’s level of experience significantly shape how a $73,000 salary is perceived. What might be considered competitive in certain fields could be an entry-level or average wage in others. For example, some entry-level jobs in the computer and tech industry can have median salaries around $75,000 per year. In contrast, the average salary for entry-level positions across various sectors in the U.S. was around $60,212 as of July 2025.

Specific job roles, years of professional experience, and educational background also directly influence earning potential. Specialized skills and advanced degrees often correlate with higher salaries within a given field. Therefore, a $73,000 salary could represent substantial compensation for someone with limited experience in a non-profit organization, but it might be considered below average for an experienced professional in a high-paying sector like finance or technology.

Evaluating Your Total Compensation Package

A comprehensive evaluation of compensation extends beyond the base salary to encompass the entire total compensation package. The monetary value of employee benefits can significantly enhance the overall worth of a job, sometimes making a lower base salary more attractive. Health insurance, including medical, dental, and vision coverage, represents a substantial benefit. Employer contributions to retirement plans, such as a 401(k), also add considerable value.

Many companies offer a 401(k) match, with the average employer match in 2025 ranging from 4% to 6% of an employee’s salary. Paid time off (PTO), including vacation, sick leave, and holidays, also carries a financial value. Other perks like bonuses, stock options, professional development opportunities, and wellness initiatives contribute to the overall financial picture. These non-salary components can collectively add thousands of dollars to an employee’s effective compensation, making the total package potentially more valuable than a higher base salary with fewer benefits.

Aligning Salary with Personal Financial Goals

Ultimately, whether a $73,000 salary is “good” depends on its alignment with an individual’s personal financial goals and desired lifestyle. A critical step in this assessment is creating a detailed budget to understand income flow and expenditure. This involves accounting for mandatory deductions from gross pay, such as federal income taxes and FICA taxes.

After accounting for these deductions and essential living expenses, individuals must assess if $73,000 allows for progress toward personal financial objectives. Managing existing debt, such as student loans or credit card balances, is a significant consideration. Establishing an emergency fund, typically recommended to cover three to six months of living expenses, is another important goal. The ability to consistently save for retirement, make a down payment on a home, or pursue other aspirations directly determines if a $73,000 salary supports a desired financial future.