Salary to Contract Rate Calculator
Convert your salary into an equivalent contractor day or hourly rate for 2026, covering CPP2, benefits, unbilled weeks and GST/HST.
Equivalent day rate needed
$213
Underlying net annual income$46,843
Billable days per year220
Turning a salary into a day or hourly rate that actually replaces it
Converting a salary into an equivalent day or hourly contract rate takes more than dividing by 260 working days — a contract rate has to cover the CPP and CPP2 an employer would otherwise pay, replace any benefits and paid time off you'd be giving up, and account for weeks you won't be billing at all between contracts.
How this calculator builds your rate
- Start from your target annual income, or your current salary plus benefits value.
- Add back the employer CPP and CPP2 contributions (5.95% plus 4% between $74,600 and $85,000) an employer currently absorbs, since a contractor effectively covers both sides.
- Factor in unbilled weeks — holidays, sick time and gaps between contracts — that a salary already prices in but a day rate doesn't.
- Divide by your realistic billable days or hours to get the rate that actually replaces your current income.
