Childcare Cost Calculator
Our childcare calculator estimates your monthly childcare costs after applying all available government support — Tax-Free Childcare, the universal 15-hour funded entitlement for all children aged 3–4, and the 30-hour extended entitlement for eligible working parents. Understanding all available support is essential given that full-time nursery costs can exceed £1,500 per month in many parts of the UK.
Childcare Cost Calculator
Calculate childcare costs and Tax-Free Childcare savings for 2026/27.
Free hours entitlement and Tax-Free Childcare eligibility depend on employment status, income, and child age. Check gov.uk for your specific entitlement.
Tax-Free Childcare 2026/27
Tax-Free Childcare allows eligible working parents to open a government-topped-up childcare account. For every £8 you deposit, the government adds £2 — an effective 20% saving on childcare costs. The maximum government top-up is £2,000 per child per year (£4,000 for disabled children). Eligibility requires both parents (or a single parent) to be working and earning at least the equivalent of 16 hours per week at National Living Wage, with neither earning above £100,000. Many eligible parents do not claim — check your eligibility at the Childcare Service on Gov.uk. Use our Benefits Calculator to estimate the childcare element within Universal Credit if you are also claiming UC, and our Salary Sacrifice Calculator to model other tax-efficient benefits alongside childcare support.
Frequently Asked Questions
Yes — TFC applies to nurseries, childminders, after-school clubs, and holiday camps registered with Ofsted. The provider must be registered to accept TFC payments.
Eligibility lapses if either parent stops working or falls below the minimum earnings threshold. There is a 31-day grace period after stopping work.
Full-time nursery (50 hours per week) costs approximately £1,100–£1,500 per month outside London and £1,500–£2,000+ in London. After the funded hours entitlement and TFC, net costs vary significantly by hours used, provider, and location.
Universal Credit includes a childcare element covering 85% of eligible childcare costs (up to £1,050 per month for one child, £1,800 for two+). This is available to UC claimants working any number of hours.
Employer-provided childcare vouchers closed to new entrants in October 2018. Existing members (those who joined before October 2018) can continue using vouchers if their employer still offers them.
Enter the number of children and their ages. The government free hours entitlement was significantly expanded in 2024-25: children aged 9 months and above now qualify for 15 hours of funded childcare per week for 38 term-time weeks per year. Working parents of children aged 9 months to 4 years can claim 30 hours if both parents earn at least the equivalent of 16 hours at National Minimum Wage. Enter the hourly rate charged by your provider for hours beyond the funded entitlement. The calculator shows total annual childcare cost, the value of free hours, and the net cost after Tax-Free Childcare if applicable. Tax-Free Childcare cannot be used alongside Universal Credit — use whichever is worth more for your circumstances.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.