What childcare really costs after the help you can get
Nursery and daycare fees are one of the biggest costs of having young children, but the price on the nursery’s list is rarely what parents end up paying. This childcare cost calculator starts from your provider’s price — per hour, day, week or month — and takes off the help you are entitled to, to show the average cost a month and a year.
In England, it deducts the funded hours (up to 30 hours a week for 38 weeks from 9 months old for working parents, and 15 hours for all 3 and 4-year-olds) and adds Tax-Free Childcare, which tops up 20% of what you pay, up to £2,000 a year per child. In the United States, it applies a dependent care FSA and the child and dependent care credit, including the larger 2026 credit rates. It is information only, not tax advice.
How to use the Childcare Cost Calculator
- Choose England or the United States, and enter the provider’s price and how it is charged.
- Enter the hours or days a week and the weeks a year your child attends, and any extras such as meals.
- England: choose your child’s age and tick the schemes you qualify for. US: enter the number of children, tax year, filing status, AGI, any dependent care FSA and the lower earner’s income.
- Read the monthly and yearly cost after help and the step-by-step table.
Childcare Cost Calculator features
30 free hours
Funded hours by age for working parents, the universal 15 hours at 3–4, and 15 hours for 2-year-olds with extra support.
Tax-Free Childcare
£2 for every £8 you pay, capped at £2,000 a year (£4,000 for a disabled child).
US credit, 2025 and 2026
The new 50%-to-35%-to-20% rate scale from 2026, and the earlier 35%-to-20% scale.
Dependent care FSA
The $7,500 limit from 2026 ($5,000 before), how it reduces the credit, and the tax it saves.
How funded hours are worked out in England
Funded hours are 38 weeks a year: 30 hours a week is 1,140 hours, 15 hours is 570. Many nurseries spread them across the year, so the calculator takes the yearly value of the funded hours away from the yearly bill — the result is the same either way. If your child attends fewer hours than are funded, only the hours attended count. Providers can charge for meals, nappies, trips and extra hours; enter those as extras. Funded hours start from the term after your child becomes eligible, and parents must reconfirm every 3 months.
The US child and dependent care credit from 2026
- Up to $3,000 of care costs for one child under 13, or $6,000 for two or more, count towards the credit, minus anything paid through a dependent care FSA.
- From tax year 2026 the credit rate starts at 50% and falls by 1 point per $2,000 of AGI over $15,000 to 35%, then by 1 point per $2,000 ($4,000 if married filing jointly) over $75,000 ($150,000 jointly) to a minimum of 20%.
- A dependent care FSA can shelter up to $7,500 a year from 2026 ($5,000 before), free of income tax and payroll tax.
- Expenses cannot exceed the lower earner’s income, and the credit only reduces tax you owe.
Related tools
Planning the year ahead? See the cost of raising a child calculator, the shared parental leave calculator and the babysitting rate calculator.
Childcare Cost Calculator FAQ
How do I calculate childcare costs with 30 free hours?
Work out the yearly bill (price × hours × weeks), take off 1,140 funded hours at your hourly rate, add extras, then take off the Tax-Free Childcare top-up of 20% of what you pay. The calculator does all of this.
How much does Tax-Free Childcare save?
20% of what you pay your provider — £2 for every £8 — up to £2,000 a year per child, or £4,000 for a disabled child.
Can I use Tax-Free Childcare with 30 free hours?
Yes. You can use Tax-Free Childcare for the hours and extras you pay for on top of the funded hours.
What is the child care tax credit for 2026?
From 2026 the credit is 20% to 50% of up to $3,000 (one child) or $6,000 (two or more) of care costs, depending on your AGI.
Should I use a dependent care FSA or the credit?
The FSA saves income and payroll tax at your bracket, but every dollar in it reduces the expenses that count for the credit. Try both in the calculator; a tax professional can confirm what is best for you.