What each input does, and how to read the result without over-trusting it. Get accurate cost comparisons, tax benefits, and personalized recommendations.
Try the Calculator NowNumber of children, their age band, and how many hours of care you need each week
The calculator starts at the national average. Replace it with a real local rate if you have one, because this input moves the result more than any other
Tick payroll taxes to add roughly 10% employer cost on top of gross wages. Tick nanny share to split one nanny between two families
See the annual and per-child cost of each option side by side, and which comes out cheaper on your inputs
| Family Scenario | Nanny Cost | Daycare Cost | Recommendation | Potential Savings |
|---|---|---|---|---|
| One infant, full-time | $45,000-$65,000/year | $15,000-$25,000/year | Daycare cheaper, by at least $20,000 | $20,000-$50,000 with daycare |
| Two children, full-time | $55,000-$75,000/year | $25,000-$40,000/year | Daycare cheaper, by at least $15,000 | $15,000-$50,000 with daycare |
| Part-time, 25 hours a week | $28,000-$42,000/year | $10,000-$18,000/year | Daycare cheaper, by at least $10,000 | $10,000-$32,000 with daycare |
| Three or more children | $65,000-$85,000/year | $40,000-$60,000/year | Daycare cheaper, by at least $5,000 | $5,000-$45,000 with daycare |
Treat them as a starting range, not a quote. The calculator uses national average daycare rates, so it does not know your local market, your provider's fee schedule, or your waitlist position. The single biggest lever on accuracy is replacing the default nanny rate with a real local one.
No. It compares gross childcare cost only and has no income or filing-status input, so it cannot work out your credit. The childcare tax credits page covers what the CDCTC and a Dependent Care FSA are actually worth, which for most households is roughly $600 to $1,600 a year.
Yes. Ticking nanny share halves the nanny figure, on the assumption of an even split between two families. Real shares often settle slightly above half each, because a nanny taking two children usually commands a higher hourly rate than one taking a single child.
The calculator does not model it. It multiplies your rate by the hours you enter with no 40-hour breakpoint, so at 45 hours it understates the real bill. Live-out household employees are generally entitled to time-and-a-half over 40 hours a week under the FLSA, so add that yourself, or enter a blended rate.
The employer-cost checkbox adds a flat 10% to the nanny figure as a rough stand-in for FICA, federal and state unemployment, and workers' compensation. It is deliberately a single number rather than an itemised payroll calculation, because the real rate depends on your state's unemployment wage base and whether workers' comp is mandatory where you live.
Use our advanced calculator to get personalized cost comparisons based on your specific family situation, location, and childcare needs.
The figures on this page are estimates compiled from the published sources below. They are not original research: this site does not survey families, nannies, or childcare centers. The calculator multiplies national average rates by the hours and children you enter. It has no location or income input.
Last verified against these sources: August 2026. Prices and tax thresholds change annually, so check the current-year figure before relying on it. General information only, not tax or financial advice. See our editorial policy for how we source and correct figures.
Charles Smith
Charles writes and maintains nannyvsdaycare.com to help families cut through confusing childcare pricing and make clearer financial decisions. Read more about Charles and why he built this site.