Free calculator

Salary to contract rate calculator

Is CA$95 an hour incorporated better than a CA$110,000 salary? Enter a salary or a rate to see its equivalent, with benefits, employer CPP and EI, billable hours and unpaid weeks taken into account.

I have

Amount (CA$)

Billable hours per week

Unpaid weeks per year when incorporated

Benefits you give up (% of salary)

Employer CPP and EI (% of salary)

CA$0/hrequivalent incorporated hourly rate

CA$0yearly billing when incorporated (paid weeks only)

CA$0/hrsalary as an hourly rate (52 paid weeks)

How the calculator works

Benefits: health and dental coverage, pension matching and other benefits a salaried job may offer. Enter what they are worth to you as a share of salary.

Employer CPP and EI: on a salary, the employer pays its own share of CPP (or QPP in Quebec) and EI contributions, up to yearly maximums. When you are incorporated, your corporation pays both sides if it pays you a salary. The default of 6% is an estimate for a salary around CA$100,000: adjust it to your case.

Unpaid weeks: a salary is paid 52 weeks a year, vacation and statutory holidays included. When incorporated you only bill the weeks you work.

Billable hours: the hours you invoice each week, often 37.5 or 40.

The result is an estimate for comparing offers, not tax advice. It does not include income tax, the personal services business (PSB) risk or your business expenses: see our guide to Inc. vs T4 vs sole proprietor.

Find contract jobs with a stated hourly rate

Frequently asked questions

How do I convert a salary into an incorporated hourly rate?

Add to the salary the value of the benefits and the employer CPP and EI contributions you give up, then divide by the hours you will really bill in a year, after vacation, statutory holidays and gaps between contracts. The calculator above does exactly that.

Why is the default 37.5 hours a week?

Many contracts in Canada, especially in government and large organizations, are based on a 7.5 hour day. Change it to 40 if your contract bills 8 hours a day.

Why 6 unpaid weeks?

As an incorporated contractor you are not paid for vacation, statutory holidays, sick days or the time between two contracts. Six weeks is a cautious starting point: lower it if you go from contract to contract without a break.

Does the result include GST/HST?

No. GST/HST is charged on top of your rate once you are registered and passed on to the government, so it is not part of your income.

Salary to contract rate calculator