Free Budget Calculator Canada

Calculate your actual take-home pay after taxes, CPP, and EI - then see exactly how much you can afford to spend, save, and invest.

Your Income

This calculator uses 2026 tax rates and provides estimates. Actual amounts may vary based on deductions and credits. Your budget updates automatically as you adjust your inputs.

Tax & Deductions Breakdown

Gross Annual Salary:$60,000
Federal Tax:-$6,097
Provincial Tax:-$2,431
CPP Contributions:-$3,362
EI Premiums:-$978
Total Deductions:-$12,867
Annual Take-Home:$47,133
Monthly Take-Home:$3,928/mo

Your Monthly Budget (50/30/20)

Needs (Housing, Food, Bills)$1,964
Wants (Fun, Dining, Shopping)$1,178
Savings & Investments$786

Recommended Savings Split:

TFSA

$393/mo

$4,714/year

RRSP / Other

$393/mo

$4,714/year

Ready to track this budget?

Stop just planning - start tracking. Waypoint Budget helps you stick to these numbers with automatic expense tracking, budget alerts, and smart insights.

No credit card required • Free tier includes budget tracking

How to Use This Canadian Budget Calculator

Look, I built this calculator because I was tired of American budget tools that don't understand Canadian taxes. When you're trying to budget, you need to know your actual take-home pay - not your gross salary.

What This Calculator Does

This isn't just another take-home pay calculator. It shows you:

  • Your actual take-home pay after federal tax, provincial tax, CPP, and EI
  • How to split your income using the 50/30/20 rule (or 60/20/20 for high cost-of-living areas)
  • How much you can afford for needs, wants, and savings each month
  • Recommended TFSA and RRSP contributions based on your savings capacity

Understanding the 50/30/20 Budget Rule

This is one of the most popular budgeting methods for a reason - it's simple:

  • 50% for Needs: Rent/mortgage, groceries, utilities, insurance, minimum debt payments, transportation
  • 30% for Wants: Dining out, entertainment, hobbies, subscriptions, shopping, vacations
  • 20% for Savings: Emergency fund, TFSA, RRSP, extra debt payments, investments

But here's the truth: if you live in Toronto or Vancouver, 50% might not cover your needs. That's why we also offer the 60/20/20 split - 60% for needs, 20% for wants, 20% for savings. Use what fits your reality.

Canadian Tax Deductions Explained

Your paycheck gets hit with four main deductions (2026 official rates):

  • Federal Tax: Progressive tax rates from 14% to 33% (NEW: bottom rate dropped from 15% to 14% in 2026). Basic personal amount: $16,452 tax-free.
  • Provincial Tax: Varies by province (Ontario ~5-13%, Alberta 10-15%, Quebec 15-26%). Each province has different credits and brackets.
  • CPP (Canada Pension Plan): 5.95% of earnings up to $74,600 - max $4,230/year. Plus CPP2: 4% on earnings $74,600-$85,000 (max $416/year).
  • EI (Employment Insurance): 1.63% of earnings up to $68,900 - max $1,123/year.

Note: This calculator uses official 2026 CRA rates updated January 2026. Your actual deductions may vary based on employer benefits, additional tax credits, or deductions you qualify for.

TFSA vs RRSP: Where Should Your Savings Go?

The calculator recommends splitting your savings between TFSA and RRSP. Here's my simple rule:

  • TFSA first if you're in a lower tax bracket (under $55k/year) or saving for short/medium-term goals
  • RRSP first if you're in a higher tax bracket (over $90k/year) and focused on retirement
  • Split both if you're in the middle - TFSA for flexibility, RRSP for tax deduction

What to Do After You Calculate

Knowing your budget numbers is step one. Sticking to them is the hard part. Here's what I recommend:

  1. Set up automatic transfers - Move your savings percentage to TFSA/savings account the day you get paid
  2. Track your spending - Use Waypoint Budget (or any tracker) to see if you're staying within your categories
  3. Adjust as needed - If 50/30/20 doesn't fit your life, change it. Better to follow a realistic budget than abandon a perfect one
  4. Review monthly - Check if you're on track. If not, figure out why and adjust

Why I Built This Calculator

When I was trying to budget, I kept finding calculators that either:

  • Used American tax rates (useless for Canadians)
  • Only showed take-home pay without budgeting recommendations
  • Required email sign-up just to use (annoying)

So I built what I needed: a Canadian-specific calculator that shows both your take-home pay AND how to budget it. No sign-up required. No BS. Just accurate numbers to help you plan.

If you find this helpful and want to actually track your budget over time (highly recommended), that's what Waypoint Budget does. But even if you just use this calculator and track manually - you're ahead of 80% of Canadians who don't budget at all.

Want to stick to this budget?

Waypoint Budget tracks your spending, alerts you when you're over budget, and helps you hit your savings goals.

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Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on simplified assumptions and may not reflect your actual situation. Tax laws, contribution limits, and regulations change frequently. Always consult a qualified financial advisor or tax professional before making financial decisions. See our Terms of Service for full details.