Calculation Methodology & Sources

Our approach

• Calculations use deterministic, programmed formulas.
• AI does not calculate individual visitor results. Your calculation runs locally in your browser from the same rule data shown here.
• Calculation rules are verified against authoritative government sources before being added to a calculator.
• Sources and verification dates are displayed with each result where practical.
• Calculators provide estimates, not guarantees.
• Employment standards, tax rules, and other regulations may change. Always confirm current requirements with the applicable official government source.
• Users can report potential errors through our Contact page.

Vacation Pay Calculator sources

The Vacation Pay Calculator uses these official sources:

Overtime Pay Calculator sources

The Overtime Pay Calculator uses these official sources:

Payroll Calculator sources

The Payroll Calculator uses these official CRA and Government of Canada sources for 2026 payroll deductions:

BC Termination Pay Calculator sources

The BC Termination Pay Calculator uses deterministic programmed formulas based on the statutory rules described in these official British Columbia sources:

BC Statutory Holiday Pay Calculator sources

The BC Statutory Holiday Pay Calculator uses deterministic programmed formulas based on the statutory rules in Part 5 of the British Columbia Employment Standards Act:

Hourly to Salary Calculator sources

The Hourly to Salary Calculator uses mathematical gross-income conversions rather than tax or payroll withholding calculations. It does not calculate income tax, CPP, CPP2, EI, vacation pay, or overtime. The Canadian payroll and pay-frequency context is supported by these authoritative Government of Canada / CRA sources:

Sales Tax Calculator sources

The Sales Tax Calculator uses the standard general GST, HST, PST and QST rates for each Canadian province and territory, stored in a centralized configuration file. In Add tax mode, each tax component is calculated from the before-tax amount and summed. In Remove tax mode, the before-tax amount is recovered by dividing the tax-inclusive total by (1 + combined rate). For Quebec, both GST and QST are applied to the same pre-tax base. Full numerical precision is used internally; currency is displayed rounded to two decimals. The calculator does not model exemptions, zero-rated supplies, or special taxes. Rates are verified against these official government sources:

Mortgage Calculator sources

The Mortgage Calculator estimates principal-and-interest mortgage payments using the standard Canadian mortgage interest convention: a quoted nominal annual rate compounded semi-annually, not in advance. The equivalent periodic rate is i = (1 + j ÷ 2)^(2 ÷ m) − 1, where j is the nominal annual rate and m is the number of payments per year. The ordinary level payment uses the standard amortizing-loan formula. Accelerated biweekly and accelerated weekly payments are derived from the monthly payment (÷ 2 and ÷ 4 respectively), and total interest is computed by iterating the amortization schedule payment-by-payment until the balance reaches zero. The calculator does not add mortgage default insurance premiums, property taxes, or affordability/qualification calculations. Methodology is based on these official Canadian sources:

Mortgage Affordability Calculator sources

The Mortgage Affordability Calculator estimates the maximum mortgage and home price using standard Canadian debt-service ratios: GDS capped at 39% and TDS capped at 44% of gross monthly household income. GDS housing costs include the mortgage payment, property taxes, heating, and 50% of condo fees; TDS adds all other monthly debt obligations. The mortgage stress test qualifies the borrower at the higher of the contract rate plus 2.00 percentage points or a 5.25% floor (OSFI Guideline B-20). The maximum mortgage principal is solved at the qualifying rate using the Canadian semi-annual compounding convention. When the down payment is below 20% (LTV above 80%), CMHC mortgage loan insurance is applied and the premium is financed into the mortgage. This is an estimate, not a mortgage approval. Methodology is based on these official Canadian sources:

TFSA Contribution Room Calculator sources

The TFSA Contribution Room Calculator uses deterministic programmed formulas to estimate available contribution room. Cumulative annual TFSA dollar limits (2009–2026) are stored in a centralized rules file and summed programmatically. Room accumulates from the year the user first became both at least 18 years old and a Canadian resident, and never before 2009. Unused room carries forward indefinitely. Withdrawals restore room on January 1 of the calendar year after the withdrawal, so current-year withdrawals are shown as room expected in the following year rather than added to current-year room. If current-year contributions exceed available room, a potential over-contribution is flagged; an excess may be subject to a 1% monthly tax, which this calculator does not compute exactly because it does not collect monthly transaction dates. Methodology is based on these official Canada Revenue Agency sources:

RRSP Contribution Room Calculator sources

The RRSP Contribution Room Calculator estimates a user's 2026 RRSP deduction limit and remaining contribution room based on CRA rules. New RRSP room is calculated as 18% of prior year earned income, capped at the 2026 annual limit ($33,810). Unused deduction room carried forward from prior years adds to new room generated, while Pension Adjustments (PA) and Net PSPAs reduce available room, and Pension Adjustment Reversals (PAR) restore room. Contributions made reduce remaining deductible room; if contributions exceed the estimated limit, excess amounts beyond the CRA $2,000 lifetime buffer are flagged. Methodology is based on these official Canada Revenue Agency sources:

RRSP Tax Refund Calculator sources

The RRSP Tax Refund Calculator estimates the reduction in 2026 Canadian federal and provincial/territorial income tax resulting from claiming an RRSP deduction. Tax Before and Tax After RRSP deduction are calculated progressively using 2026 tax bracket rates for all 13 provinces and territories. Special jurisdiction rules such as the Quebec 16.5% Basic Federal Tax Abatement, Ontario Surtax, and Ontario Health Premium are modeled. Deductions are capped at taxable income and available RRSP deduction limits where entered. Methodology is based on these official Canada Revenue Agency and Revenu Québec sources:

FHSA Contribution Room Calculator sources

The FHSA Contribution Room Calculator estimates a user's 2026 First Home Savings Account participation room, carryforward, remaining room, and potential excess FHSA amount based on CRA rules. The base annual participation amount is $8,000, and participation room begins in the year the first FHSA is opened. Unused room carries forward up to a maximum of $8,000 to future years. Both cash contributions and direct transfers from an RRSP to an FHSA utilize participation room and count toward the $40,000 lifetime limit, though direct RRSP transfers are not deductible as new FHSA contributions. Any excess FHSA amount is subject to a 1% per month tax until resolved. Calculations also support prior-year excess deductions, taxable withdrawals, and re-participation room mechanics in accordance with official Canada Revenue Agency guidance:

CPP & EI Calculator Canada sources

The CPP & EI Calculator estimates 2026 annual statutory payroll contributions only — it does not calculate income tax, the Quebec 16.5% federal abatement, or net pay. Outside Quebec it uses CPP (5.95%, $3,500 basic exemption, YMPE $74,600), CPP2 (4.00% between YMPE and YAMPE $85,000, max $416.00), and EI (employee 1.63% on insurable earnings up to $68,900, max $1,123.07; employer 1.4× employee, max $1,572.30). For Quebec it uses QPP (6.30%, max $4,479.30), QPP2 (4.00%, max $416.00), Quebec EI (employee 1.30%, max $895.70; employer 1.4× employee, max $1,253.98), and QPIP (employee 0.430% up to $103,000, max $442.90; employer 0.602%, max $620.06). Explicit annual maximum constants cap every contribution so floating-point multiplication cannot exceed an official maximum; final values round to two decimals. Methodology is based on these official Canada Revenue Agency and Revenu Québec sources:

If you believe a calculation is incorrect or a rule is outdated, please let us know through our Contact page. Include the calculator, the inputs and the result you questioned, and (if possible) the official source you believe is more accurate.