Question 1

How much does daycare cost per month in the US?

Accepted Answer

The U.S. Department of Labor's National Database of Childcare Prices puts the median price of infant center-based care at about $1,061/month (2023-era data), and Child Care Aware of America's 2025 report averages $13,184/year (~$1,099/month) across care types. But the range is enormous: roughly $700/month in the cheapest states to over $2,000/month in the priciest metros. Use the Compare tab with your state to get a planning estimate, then confirm with written quotes from local providers — medians are not quotes.

Question 2

Is daycare cheaper than a nanny?

Accepted Answer

Almost always, yes — for one child. A full-time nanny at $20/hour costs about $1,040/week in wages alone (before ~10% employer payroll taxes), while center-based infant care medians run roughly $250–$450/week depending on the state. The math flips with more children: a nanny's cost rises only ~20% per extra child, while daycare charges nearly full price per child (minus a ~10% sibling discount). With 2–3 kids, an au pair or nanny can beat two or three daycare tuitions. The Compare tab shows the crossover for your family.

Question 3

How much does an au pair cost per month?

Accepted Answer

At the U.S. Department of State minimum, an au pair costs $195.75/week in stipend ($10,179/year) plus a $9,000–$12,500 agency program fee, a $500 education allowance, and extras like insurance and higher household bills — roughly $1,785/month in fixed program costs, or $2,250–$2,500/month all-in (2026 figures). The key advantage: au pairs are priced per family, not per child, and provide up to 45 hours/week of live-in care. Confirm current program fees with a State Department–designated sponsor agency before budgeting.

Question 4

What is the Dependent Care FSA limit?

Accepted Answer

For 2025, you can contribute up to $5,000 per household ($2,500 if married filing separately) to a Dependent Care FSA. Starting January 1, 2026, the One Big Beautiful Bill Act permanently raises the limit to $7,500 per household ($3,750 married filing separately) — the first increase since 1986. Contributions are pre-tax, so the savings equal your contribution times your marginal tax rate. Use-it-or-lose-it rules apply, and your employer must offer the plan.

Question 5

How does the Child and Dependent Care Tax Credit work?

Accepted Answer

The credit is a percentage of up to $3,000 in qualifying expenses (one child) or $6,000 (two or more). For 2025 the rate slides from 35% down to 20% as income rises (20% above $43,000 AGI). For 2026, the One Big Beautiful Bill Act raises the base rate to 50%, phasing down to a 35% floor through $75,000 AGI ($150,000 joint), then to a 20% floor above that. The credit is nonrefundable, and expenses reimbursed by a Dependent Care FSA cannot also be used for the credit. These are general-information summaries — confirm your situation with a tax professional.

Question 6

Should I use the Dependent Care FSA or take the tax credit?

Accepted Answer

You can use both, but not on the same dollars. As a rule of thumb, compare your marginal tax rate to your credit rate: each $1 routed through the FSA saves you your marginal rate but displaces credit at your credit rate. If your marginal rate (federal + state + 7.65% FICA) exceeds your credit rate, maxing the FSA first usually wins. The Tax Savings tab computes your exact split and shows which dollar goes where.

Question 7

How do the UK 30 free hours of childcare work?

Accepted Answer

Since September 2025, eligible working parents in England get 30 funded hours per week (38 weeks/year — about 22 hours/week if stretched across 52 weeks) for children from 9 months old until school age. Both parents must generally expect to earn at least 16 hours/week at minimum wage, and neither can have adjusted net income over £100,000. All 3–4-year-olds also get a universal 15 hours regardless of work status. Scotland funds 1,140 hours for all 3–4-year-olds; Wales and Northern Ireland have their own variants — the Location tab models all four nations, plus Tax-Free Childcare top-ups.

Question 8

Is it financially worth going back to work vs. staying home?

Accepted Answer

Compare your actual take-home pay (not salary) against the full cost of care for all your children plus work costs like commuting. Many families find the second income nets far less than expected — but the Break-Even tab also models wage growth over 5 years, because stepping out of the workforce can cost far more in lost raises and career progression than one year of daycare. This is a planning estimate, not employment or financial advice.

Question 9

How much does childcare cost by state?

Accepted Answer

Center-based infant care ranges from roughly $8,600/year in the cheapest states to over $22,000/year in the priciest (Child Care Aware of America, 2024 state data). The Location tab estimates costs for any US state — enter a ZIP code and it detects the state automatically — and adjusts for metro vs. rural markets. State figures are planning estimates derived from published CCAoA data, spot-verified against published state averages; confirm with local providers.

Question 10

Do daycare centers give sibling discounts?

Accepted Answer

Many do — typically around 10% off the second child's tuition at centers, and smaller discounts (often ~5%) at licensed home daycares. Discounts are per-provider, not guaranteed, so ask. Nannies usually charge a premium of roughly 10–25% per extra child rather than double. Au pairs are the outlier: the program fee and stipend are per family regardless of how many children they care for (up to 45 hours/week total), which is why the Multiple Children tab often shows au pairs winning at 2+ kids.

Question 11

What is nanny tax and do I owe it?

Accepted Answer

If you pay a household employee (like a nanny) $2,800 or more in 2025, you're generally a household employer: you owe the employer share of Social Security and Medicare (7.65%), federal unemployment tax, and usually state unemployment/workers' comp, and you must withhold the employee's share. The calculator's nanny mode adds a default ~10% for employer payroll costs — adjust it for your state. Nanny-tax and payroll rules are complex and penalties are real; consult a tax professional or household payroll service.

Question 12

How much does childcare cost in Australia or Canada?

Accepted Answer

Australia's Child Care Subsidy covers up to 90% of fees for families earning under A$80,000, tapering to 0% at A$530,000, with an hourly rate cap (A$13.73 in 2024–25) — the Location tab estimates your gap fee. In Canada, federal-provincial agreements under the Canada-Wide Early Learning and Child Care plan have driven regulated fees toward $10/day in most provinces; the calculator defaults to $10/day and lets you adjust. Both are simplified estimators — confirm current rates with your provider or Services Australia / your provincial ministry.

Question 13

What is the difference between this tool and a baby cost calculator?

Accepted Answer

They answer different questions. Our baby cost calculator (baby-cost-lab) builds a total first-year baby budget — gear, birth costs, feeding, diapers, and childcare as one line item. This childcare cost lab goes deep on childcare itself: five care types side-by-side, state/ZIP and international cost engines, FSA and tax-credit math, work-vs-stay-home break-even, and multi-child pricing. The two tools cross-link; use both.

Question 14

What is the difference between childcare cost and child support?

Accepted Answer

Childcare cost is what you pay a provider (daycare, nanny, au pair) so you can work. Child support is a court-ordered payment between separated parents, calculated under state or national guidelines. They are completely different calculations — our separate child support lab covers US state formulas, custody-time percentages, Canada's federal tables, and the UK CMS formula.

Question 15

Are these childcare prices guaranteed quotes?

Accepted Answer

No. Every figure here is a planning estimate built from published medians (U.S. DOL National Database of Childcare Prices; Child Care Aware of America state reports; Care.com surveys) — medians describe markets, not your provider. Real prices vary by neighborhood, waitlists, hours, and what's included (meals, diapers, late fees). Educational estimates only — not financial, tax, legal, or employment advice. Always confirm with written quotes from at least two or three local providers before making decisions.

Question 16

Does this tool send my financial data anywhere?

Accepted Answer

No. This calculator runs 100% in your browser — your salary, ZIP code, and tax inputs never leave your device. There are no accounts, no tracking of your entries, and no external requests. You can verify this in your browser's developer tools.

Childcare Cost Lab

Compare care types side-by-side

Children

Assumptions (editable)

Childcare cost by location

United States

United Kingdom — funded hours

Australia — Child Care Subsidy estimator

Canada — simplified estimator

Dependent Care FSA + Child and Dependent Care Tax Credit

Work vs. stay home: break-even calculator

Multiple children: sibling-discount math

Children

What this childcare cost calculator covers

Methodology & sources

Frequently asked questions

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