πŸ‡¨πŸ‡¦ Built for Canada β€” Free forever

What should you
actually charge?

Most Canadian freelancers undercharge by 30–50%. This calculator factors in CPP contributions, EI premiums, federal and provincial income tax, and your real expenses to find your true hourly rate.

Calculate my rate ↓
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πŸ’° Income Goal
What do you want to take home annually after tax? Think of the net salary you'd accept at a full-time job.
$
⏱ Working Time
Be realistic β€” you won't bill every hour. Account for admin, marketing, gaps between contracts, and unbillable time.
30 hrs
4 wks
πŸ₯ Benefits & Expenses
As a freelancer, you cover everything an employer used to provide. No employer CPP match, no benefits, no paid time off.
$
$
$
$
$
πŸ“ˆ Profit Margin
Buffer for gaps between contracts, slow months, and business growth.
15%
Your Minimum Freelance Rate
$0
per hour (CAD)
$0
Per Day (8 hrs)
$0
Per Week
$0
Per Month
$0
Annual Gross

How We Got There

Your target take-home pay $0
CPP contributions (both portions)Self-employed pay both employee and employer shares: 11.9% on earnings $3,500–$68,500 + $0
EI premiums (optional for self-employed)Voluntary: provides maternity, parental, sickness, and compassionate care benefits + $0
Federal income tax15% to 33% progressive brackets + $0
Provincial income taxOntario: 5.05% to 13.16% + $0
Health & dental benefits + $0
RRSP / retirement savings + $0
Software & tools + $0
Other business expenses + $0
Accountant fees + $0
Profit marginBuffer for gaps, growth, and emergencies + $0
Total you need to earn $0
Γ· Billable hours per year 0 hours
πŸ’‘
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πŸ‡ΊπŸ‡Έ United States πŸ‡¬πŸ‡§ United Kingdom πŸ‡¨πŸ‡¦ Canada πŸ‡¦πŸ‡Ί Australia

Why Most Canadian Freelancers Undercharge

If you just divide your salary by 2,080 hours, you'll end up earning far less than you planned. Here's what that simple calculation misses.

01

CPP β€” Double the Cost

As an employee, your employer matches your CPP contribution. As self-employed, you pay both portions β€” 11.9% on pensionable earnings between $3,500 and $68,500. That's up to $7,735 per year.

02

No Benefits Package

No employer health plan, no dental, no disability insurance, no RRSP matching. Extended health benefits alone cost $2,000–$5,000/year. You fund everything β€” or go without.

03

Unbillable Hours

You won't bill 40 hours a week, 52 weeks a year. Between finding clients, admin, invoicing, and gaps between contracts β€” most freelancers bill 1,200–1,500 hours a year, not 2,080.

Frequently Asked Questions

How do I calculate my freelance hourly rate in Canada?
Start with your desired annual take-home pay. Add CPP contributions (both employee and employer portions), federal income tax, provincial income tax, health benefits, retirement savings, and business expenses. Add a profit margin for gaps and emergencies. Then divide by your realistic billable hours per year (typically 1,200–1,500 hours). That's your minimum hourly rate.
Do I need to register for GST/HST?
You must register for GST/HST if your revenue exceeds $30,000 in four consecutive calendar quarters (the "small supplier" threshold). Below that, registration is voluntary. If registered, you charge clients 5% GST (or HST of 13–15% depending on province) on top of your rate. You can then claim input tax credits on business purchases. The GST/HST you collect isn't your income β€” it goes to the CRA.
What is a good freelance rate in Canada?
Rates vary widely by industry and location. Software developers typically charge $75–$175/hour, designers $50–$125/hour, writers $40–$100/hour, and consultants $100–$250+/hour. Rates in Toronto and Vancouver tend to be higher than elsewhere. The key is to calculate YOUR number based on your costs rather than guessing from averages.
How does CPP work for self-employed Canadians?
When you're employed, you pay 5.95% of pensionable earnings and your employer matches with another 5.95%. As a self-employed person, you pay both portions β€” 11.9% total β€” on net self-employment income between $3,500 and $68,500 (2024 limits). There's also CPP2, an additional 4% on earnings between $68,500 and $73,200. This is reported on your T1 return using Schedule 8.
Do self-employed Canadians pay EI?
EI is optional for self-employed individuals. If you opt in through Service Canada, you pay the employee premium (1.66% of insurable earnings up to $63,200) and gain access to special benefits: maternity, parental, sickness, compassionate care, and family caregiver benefits. You don't get regular EI benefits (job loss). Once you opt in and receive benefits, you can't opt out.
Should I incorporate or stay a sole proprietor?
As a sole proprietor, all business income is taxed as personal income. Incorporating creates a separate legal entity with a lower corporate tax rate (typically 9–12.2% on the first $500,000 of active business income via the small business deduction). Incorporation makes sense when you're earning significantly more than you need to live on and can leave money in the corporation. However, it adds complexity and costs ($1,000–$3,000/year in extra accounting). Talk to an accountant when your net income consistently exceeds $80,000–$100,000.
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