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Nursery Cost Calculator

Calculate your true childcare costs after funded hours and Tax-Free Childcare. See if returning to work makes financial sense.

Estimate only. This calculator provides rough estimates based on typical scenarios. Actual costs vary by provider, region, and your specific circumstances. Always confirm with your nursery and check eligibility via Childcare Choices.

Children in Childcare

Funded hours and the £2,000 Tax-Free Childcare cap both apply per child, so adding each child gives an accurate household total. Not sure what you're eligible for? Try our Childcare Funding Checker.

Weeks Per Year

Note: Funded hours are for 38 weeks (term-time). If you use year-round care, providers often "stretch" hours across more weeks at fewer hours per week, or you pay full rate during holidays. This is applied to each child's funded hours.

Tax-Free Childcare

How it works: For every £8 you pay in, the government adds £2. Maximum top-up is £2,000/year per child (£4,000 if disabled).

Your Income (optional)

Your Estimated Costs

Based on your inputs above

Total hours per week 30 hrs
Funded hours (free)
−30 hrs
Hours you pay for 0 hrs
Weekly cost (before TFC) £0
Tax-Free Childcare saving −£0/mo

Monthly Cost

£0

after funding & TFC

Annual Cost

£0

after funding & TFC

Things to Consider

  • Career progression: Staying in work may lead to pay rises, promotions, and better long-term earning potential.
  • Pension contributions: Employer pension contributions add significant long-term value not shown in take-home pay.
  • Childcare costs reduce: Once children start school (reception at 4), costs drop significantly.
  • Personal wellbeing: Work can provide social connection, structure, and identity beyond financial returns.
  • Extras not included: Nurseries often charge separately for meals, nappies, sun cream, trips etc.
Estimate only: This calculator provides rough estimates for planning purposes. Actual costs depend on your nursery's specific rates, your funding eligibility, and regional variations. Always confirm details with your childcare provider and check eligibility via childcarechoices.gov.uk.

Common Questions

How much does nursery cost in the UK?
Average UK nursery costs vary by region, typically ranging from £50-100 per day for full-time care. London rates are usually at the higher end. Part-time and sessional options are available at most nurseries.
How do funded hours work?
In England, eligible working parents can receive 30 funded hours per week for children aged 9 months to 4 years. Non-working parents receive 15 universal hours for 3-4 year olds. These hours are free at the point of use for 38 weeks (term-time). Some providers "stretch" hours across more weeks at fewer hours per week. Providers may still charge for meals, consumables, and additional hours.
What is Tax-Free Childcare and how does it help?
Tax-Free Childcare is a government scheme where for every £8 you pay into your childcare account, the government adds £2. This gives you a 20% discount on childcare costs, up to £2,000 per child per year (£4,000 for disabled children). You can use it to pay any Ofsted-registered provider.
Is it worth going back to work with childcare costs?
This is a personal decision that goes beyond pure finances. Consider: career progression and future earning potential, employer pension contributions (often 3-8% extra), maintaining skills and professional networks, personal fulfilment and adult interaction, and the fact that childcare costs reduce significantly once children start school.
What about childcare vouchers?
Childcare vouchers closed to new applicants in October 2018. If you're already in an employer scheme, you can continue using vouchers. However, you cannot use both vouchers and Tax-Free Childcare — you must choose one. For most families, Tax-Free Childcare offers better value.