Freelance Rate Calculator
Going freelance in Canada? Your old salary is not your hourly rate. This turns the pay you want into the minimum you must charge, after covering the employer CPP match, unbillable time, vacation, and unpaid gaps that a paycheque used to hide.
Rates & rules verified · July 2026Primary sources: CRA – Tax rates and income brackets · CRA – CPP contribution rates and maximums · CRA – EI premium rates and maximums · Revenu Québec – Income tax rates
Your rate depends on how much you can bill
The fewer hours you can invoice each week, the higher every hour has to be. Your current setting is highlighted.
Rate vs weeks off
More time off means the same income is earned over fewer weeks, so your rate rises. Highlighted row is your current setting.
| Weeks off / yr | Billable hrs / yr | Required rate | Rounded rate |
|---|
How this is calculated
The employer burden employees never see
A salary is only part of what an employee costs. Their employer also pays the matching half of CPP, EI at 1.4× the employee rate, plus vacation, statutory holidays, sick days and benefits, together worth roughly 12–18% on top of base pay. As a freelancer you shoulder all of it. That's why dividing a salary by 2,080 hours (52 × 40) badly underprices your work.
The extra CPP you pay
Self-employed Canadians pay both halves of the Canada Pension Plan. We compute your self-employed contribution as cppContribution(income, {selfEmployed:true}), base + CPP2, using 2026 figures (5.95% on earnings from the $3,500 exemption up to the $74,600 YMPE, then 4% up to the $85,000 CPP2 ceiling). The extra employer half versus an employee is total ÷ 2, and it's added straight into your required revenue.
No EI (usually)
Self-employed workers don't pay regular EI and can't claim regular EI benefits. You may opt in to EI special benefits (parental, sickness, caregiving) via a voluntary CRA agreement, which then charges the employee EI rate. Because most freelancers don't, EI isn't added here, but budget for it if you plan to opt in.
The formula
Required revenue = (target income + expenses + employer-half CPP) × (1 + buffer%). The buffer covers unpaid gaps between contracts and clients who pay late or not at all. Billable hours per year = hours/week × (52 − weeks off). Your minimum rate = required revenue ÷ billable hours, shown rounded up to the nearest $5 (round numbers quote better), with the exact figure beneath. Day rate uses a 7.5-hour day; the monthly retainer is required revenue ÷ 12.
GST/HST registration at $30k
Once your taxable revenue crosses $30,000 over four consecutive quarters you must register for GST/HST and charge it on top of your rate. It doesn't change the rate you need to earn, but it's real cash flow and paperwork, use the HST/GST Quick Method vs Regular calculator to choose how to remit it and keep more of it.
Sole prop vs incorporation
Below roughly $100k of profit that you fully spend, a sole proprietorship is usually simplest and cheapest; incorporation starts to pay off mainly when you can leave profit in the company to defer tax or need liability protection, talk to an accountant before deciding.
What this doesn't model
Income tax itself (your target is pre-tax, see the income tax calculator), GST/HST cash flow, RRSP/retirement saving beyond CPP, or the value of benefits you may want to self-fund.
Common questions
Why can't I just charge my old salary as an hourly rate?
A $90,000 salary divided by 2,080 working hours looks like about $43/hour, but that number is a trap. As an employee your employer also paid the other half of your CPP, EI at 1.4×, your vacation, statutory holidays, sick days and benefits, worth roughly 12–18% on top of salary. As a freelancer you cover all of that yourself, and you only get paid for billable hours, not the time you spend on sales, admin and unpaid gaps. This calculator adds those costs back so your freelance rate actually replaces the salary.
How much extra CPP do self-employed Canadians pay?
Self-employed people pay both halves of the Canada Pension Plan, the employee portion and the employer portion. In 2026 the maximum combined base contribution is about $8,460 plus up to $832 of CPP2, so the extra employer half you cover versus an employee can reach roughly $4,646 a year at or above the maximum pensionable earnings ($74,600 YMPE, $85,000 for CPP2). This tool surfaces that exact extra amount for your income.
How many hours a week can a freelancer actually bill?
Most freelancers bill only 50–60% of a 40-hour week, the rest goes to finding clients, quoting, invoicing, email, bookkeeping and learning. Billing 25 hours out of a 40-hour week is realistic; assuming 40 billable hours will leave you badly underpriced. The calculator lets you set billable hours per week and weeks off for vacation, sickness and admin, then divides your required revenue only over the hours you can actually invoice.
Do freelancers pay EI in Canada?
No, self-employed workers do not pay regular EI premiums and cannot collect regular EI benefits. You may opt in to EI special benefits (maternity, parental, sickness, caregiving) through a voluntary agreement with the CRA, which then charges the employee EI rate. Because most freelancers skip this, the calculator does not add EI to your required revenue by default.
When do I have to register for GST/HST as a freelancer?
Once your taxable revenue crosses $30,000 over four consecutive calendar quarters (or in a single quarter) you must register for GST/HST and start charging it. GST/HST is collected on top of your rate and remitted to the CRA, so it does not change the rate you need to earn, but it is extra cash flow and paperwork to plan for. See the HST/GST Quick Method vs Regular calculator to choose how to remit it.