Employee vs Contractor Calculator
Compare the true cost of hiring an employee versus a contractor.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
Employee
$
Contractor
$
Employee is $7,397.25/year cheaper
Employee Total Cost
$92,602.75
Salary: $80,000.00
Employer CPP: $4,230.45
Employer EI: $1,572.30
Vacation: $3,200.00
WSIB: $1,200.00
Benefits: $2,400.00
Contractor Total Cost
$100,000.00
No CPP, EI, benefits, vacation, or WSIB overhead
Frequently Asked Questions
Why do contractors charge more per hour?
Contractors absorb costs that employers otherwise pay: both CPP portions, their own benefits, vacation, equipment, professional development, and business expenses. A 20-40% premium over equivalent salary is typical.
Official Data Sources
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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