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✦ Tools & Resources

Salary to Hourly Calculator: Convert Your Pay (2026)

Convert an annual salary to an hourly wage, or an hourly wage to a salary, based on the hours you really work. You also see what you keep per hour after 2026 taxes, CPP and EI.

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Take-home uses 2026 rates: federal and provincial income tax (basic personal amount only), CPP/CPP2 and EI as an employee. Estimates only, not tax advice.
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✦ Good To Know

Salary vs. Hourly, Explained

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.

How do I convert an hourly wage back to a salary?

Multiply your hourly wage by your hours per week, then by the weeks you're paid in a year. At $25 an hour, 40 hours a week and 52 weeks, that's $52,000 a year, or about $4,333 a month and $2,000 every two weeks. The calculation works the same way for part-time or irregular hours: at 25 hours a week, the same wage gives $32,500.

If you run payroll for hourly staff, our payroll service handles the deductions and remittances.

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.

How do I convert a monthly or weekly salary to an hourly rate?

Convert it to an annual figure first. A monthly salary of $5,000 is $60,000 a year. Divide that by 2,080 hours (40 hours a week for 52 weeks) and you get about $28.85 an hour.

For weekly pay, divide by the hours in the week: $1,200 for a 40-hour week is $30 an hour. If you're paid every two weeks, divide the pay by twice your weekly hours: 80 on a full-time schedule.

Should I count unpaid breaks and vacation?

Count only the hours you're paid for. A 9-to-5 schedule with an unpaid 30-minute lunch, five days a week, comes to 37.5 paid hours, not 40, so a $75,000 salary works out to about $38.46 an hour instead of $36.06.

Apply the same logic to weeks. If your vacation is paid, enter 52 paid weeks. A contractor who takes four unpaid weeks off should enter 48.

What's the difference between gross and net hourly pay?

Gross pay is your rate before deductions, the number you see in a job offer. Net pay is what reaches your bank account after income tax, CPP and EI. The calculator shows both for the province you choose, using 2026 rates and the basic personal amount as the only credit. For a fuller breakdown of your tax, try the Income Tax Calculator.

Your pay stub may also show deductions the calculator leaves out, such as a workplace pension, benefit premiums or union dues, so your real take-home pay can be a little lower.

Negotiating an offer or setting a contract rate?
Farrukh Ahmed, CPA, has served Mississauga since 1995 and handles payroll, bookkeeping and tax preparation. We'll help you compare the full after-tax picture. Responses within 24 hours.
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