Salary to Hourly Calculator

Annual salary divided by (hours per week x paid weeks per year). The standard assumption is 40 hours and 52 weeks, or 2,080 hours a year, so a $75,000 salary is about $36 per hour. If you actually work 50-hour weeks, that same salary is only $28.85 per hour, which is exactly why this calculator lets you set real hours.

Hourly workers get paid for every hour, including overtime at 1.5x after 44 hours per week in Ontario. Salaried roles usually trade that away for stability, benefits, and paid vacation. When comparing offers, price the whole package: an hourly rate with no benefits needs to be meaningfully higher than the salary equivalent to break even.

A common rule: take the equivalent employee hourly rate and add 25% to 50%. As a contractor you cover both halves of CPP, your own benefits, vacation, sick days, equipment, and unbillable hours. You'll also need to register for and charge GST/HST once you cross $30,000 in revenue.

On the plus side, you can deduct legitimate business expenses, and at higher incomes incorporating may save real money. Pricing yourself is a tax question as much as a market one; call me at (905) 814-0111 before you set your rate.

Income tax, CPP and EI typically take 20% to 35% of a middle-income paycheque. The good news: deductions like RRSP and FHSA contributions claw some of that back. Try our RRSP Tax Savings Calculator to see how much of the gap you can close.