Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Lower annual cost option
Daycare
Daycare annual cost
$18,300
Nanny annual cost
$57,658
Annual difference
$39,358
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How to use this
- 1Enter daycare weekly rate ($).
- 2Enter backup/sick care days needed.
- 3Enter backup care daily rate ($).
- 4Enter nanny hourly rate ($).
- 5Enter nanny hours per week.
- 6Enter nanny payroll tax/benefits rate (%).
- 7Enter number of children.
- 8Read your lower annual cost option on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Daycare centers charge a predictable per-child weekly rate but close on holidays and sick days, while a nanny costs more per hour especially with multiple kids and adds payroll tax and benefits obligations, but offers flexibility and one-on-one care. This tool totals annual cost for each option including estimated backup-care days and employer payroll taxes for a nanny so you can compare true costs, not just headline rates.
Worked example
Using the values the calculator loads with:
Inputs
- Daycare weekly rate: 350 $
- Backup/sick care days needed: 8
- Backup care daily rate: 100 $
- Nanny hourly rate: 22 $
- Nanny hours per week: 45
- Nanny payroll tax/benefits rate: 12 %
- Number of children: 1
Results
- Lower annual cost option: Daycare
- Daycare annual cost: $18,300
- Nanny annual cost: $57,658
- Annual difference: $39,358
What each field means
Inputs
- Daycare weekly rate ($)
- The daycare weekly rate used in the calculation, measured in $. Starts at 350 $ so you have a working example on load.
- Backup/sick care days needed
- The backup/sick care days needed used in the calculation. Starts at 8 so you have a working example on load.
- Backup care daily rate ($)
- The backup care daily rate used in the calculation, measured in $. Starts at 100 $ so you have a working example on load.
- Nanny hourly rate ($)
- The nanny hourly rate used in the calculation, measured in $. Starts at 22 $ so you have a working example on load.
- Nanny hours per week
- The nanny hours per week used in the calculation. Starts at 45 so you have a working example on load.
- Nanny payroll tax/benefits rate (%)
- The nanny payroll tax/benefits rate used in the calculation, measured in %. Starts at 12 % so you have a working example on load. Accepted range: 0–30 %.
- Number of children
- The number of children used in the calculation. Starts at 1 so you have a working example on load. Accepted range: 1–5.
Results
- Lower annual cost option
- Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Daycare annual cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Nanny annual cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual difference
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
When does a nanny become cheaper than daycare?
Usually with three or more children, since daycare cost scales per child while a nanny's rate stays roughly flat regardless of how many kids they're watching.
Do I really owe payroll taxes for a nanny?
Yes — the 'nanny tax' requires paying Social Security, Medicare, and often unemployment tax once you pay a household employee above the IRS threshold, which most families underestimate.
Does daycare have hidden costs?
Registration fees, supply fees, and late pickup penalties are common — add a buffer of a few hundred dollars a year if your center charges these.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Daycare vs Nanny Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/daycare-vs-nanny-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/daycare-vs-nanny-cost" target="_blank" rel="noopener">Daycare vs Nanny Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Daycare vs Nanny Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/daycare-vs-nanny-cost) (2026).