How this calculator works
Choose the pay amount you know. Paid weeks can include paid vacation, but exclude unpaid leave. The effective rate applies to all earnings as a budget assumption; it is not a marginal tax bracket or a CRA payroll calculation. This arithmetic has no tax year and does not estimate CPP or EI separately.
Formula
Annual gross = hourly wage x paid hours per week x paid weeks. Annual net = gross x (1 - effective rate). Gross from net = net / (1 - rate).
Worked example
$25 per hour for 40 hours over 52 paid weeks gives $52,000 gross. At a supplied 20% deduction rate, net is $41,600 or $20 per paid hour.
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Frequently asked questions
Should I enter my marginal tax rate?
Use an effective rate representing total deductions as a share of gross pay. A marginal rate applies only to the next dollar.
Why not always use 52 weeks?
Unpaid holidays, seasonal schedules and gaps between contracts can reduce paid weeks.
Can I start with net pay?
Yes. Choose net annual income and provide your assumed deduction rate. Gross cannot be recovered from a 100% deduction rate.