Child Care Cost Calculator (Daycare vs Nanny)
Compare the yearly cost of daycare, a nanny (with employer taxes) and a nanny share — and see child care as a share of household income.
For general information only — not medical advice. Results are estimates; talk to a doctor or qualified health professional about your own health.
How to use
- 1Enter the daycare fee and the nanny's hourly rate and hours.
- 2Add employer taxes for the nanny and your household income.
How it's calculated
Nanny yearly = hourly × hours per week × 52 × (1 + employer taxes). Nanny share = nanny cost ÷ families. Daycare yearly = monthly fee × 12.
Frequently asked questions
Do I have to pay taxes for a nanny?
In the US, yes if you pay above the IRS threshold ($2,800 in 2025) — employer Social Security and Medicare (7.65%) plus federal and often state unemployment tax.
What does the US government consider affordable?
HHS set a benchmark of child care costing no more than 7% of household income.
What about the full cost of raising a child?
The USDA's last estimate (2015) was about $233,000 for a middle-income family through age 17, before inflation — roughly $300,000+ in today's money.