🎁 Welcome offer10% off your first booking — new to Genie? Use code WELCOME10 at checkoutClaim it ›

Free tools › Contractors › Labour cost calculator

Free calculator · no sign-up

Labour cost calculator

An employee costs more than their wage. Add the employer’s share of CPP and EI, vacation pay, WSIB and benefits — then see what you need to bill per hour.

✓ Free✓ Works on your phone✓ Any tax rate

Employee

Your real cost per paid hour
Wages for the year
Vacation pay
CPP (employer share)
EI (employer share)
WSIB
Benefits
Total yearly cost
Cost per billable hour
Bill at least (for your margin)
CPP2 (on earnings above $74,600) and Ontario EHT aren’t included — most small employers are under both.
Do this in Genie — free
Send itemized quotes clients sign online, get local project leads you choose, and keep your price list. Free plan, no card.Create your free account

How it’s calculated

  • Gross pay = wage × hours × weeks, plus vacation pay.
  • CPP = 5.95% × (gross − $3,500), on gross up to $74,600 (2026).
  • EI = 2.282% × gross, on gross up to $68,900 (2026).
  • WSIB = your rate × gross ÷ 100.
  • Cost per billable hour = total cost ÷ (paid hours × billable %). Bill rate = that ÷ (1 − margin).

Rates change every January — check the CRA’s CPP and EI pages and your WSIB rate. This is an estimate, not payroll or tax advice.

More free tools for contractors

All free, no sign-up — use as many as you like.

Quote & estimate makerA professional itemized quote with optional items, tax and deposit.Invoice generatorMake a professional invoice with tax — print or save as PDF.Job price calculatorLabour, materials, overhead and your profit margin → the price to quote.Profit margin calculatorMargin, markup and profit — or the price for the margin you want.Roof replacement cost calculatorRoof area from the footprint and pitch, squares with waste, and the job cost.Roof inspection checklistShingles, flashing, gutters, attic — printable.Room airflow (CFM) calculatorAirflow a room needs from its size and air changes per hour.Duct size calculatorRound and rectangular duct size for an airflow and air speed.Air changes per hour calculatorHow many times an hour a fan or system replaces the air in a room.House cleaning price calculatorHours and price for a standard, deep or move-out clean.
Genie AcademyFree guides & coursesStep-by-step pricing and business guides for roofing, HVAC, plumbing, electrical, painting, cleaning, handyman, landscaping, agents and property managers — with real worked examples.Browse all guides →

All free tools for contractors

Questions

Why is my cost per hour so much higher than the wage?

Because you pay for hours that aren’t billable (travel, set-up, quoting) and the employer’s share of CPP, EI, vacation pay and WSIB on top of the wage.

Does this include CPP2?

No. CPP2 only applies to earnings above $74,600 in 2026, which few hourly trade employees reach.