Childcare Cost Calculator 2026/27

Find your net childcare costs after applying free hours entitlement and the Tax-Free Childcare government top-up.

Net Annual Childcare Cost
£0
Enter your details to calculate
Gross Annual Cost
£0
Free Hours Saving
£0
Tax-Free Childcare Saving
£0
Net Monthly Cost
£0
Free Hours Entitlement
0 hrs/yr
Hourly Rate Used
£0/hr
Enter your details above to see your childcare cost breakdown.
Annual Cost Breakdown
How It Works

This calculator starts from your gross annual childcare spend (hours per week multiplied by weeks per year multiplied by the hourly rate), then deducts two layers of government support.

Free hours are funded by the government directly at your provider. The 30 free hours for working parents of 3-4 year olds equals 1,140 hours per year (30h x 38 term weeks). Providers can stretch these to 52 weeks at around 22 hours per week.

Tax-Free Childcare adds a 20% government top-up: for every £8 you pay in, the government adds £2, worth up to £2,000 per year per child. You cannot use TFC at the same time as childcare vouchers for the same child.

Rates shown are typical averages. Your provider may charge extra for meals, consumables or activities on top of the funded rate.

Free Hours Entitlement 2026/27 · Quick Reference

Term-time hours (38 weeks per year). Working parent = earning £2,167/month minimum, under £100,000/year adjusted net income each.

Child Age Universal Hours Working Parent Hours Hours Per Year
Under 9 monthsNoneNone0
9 - 23 monthsNone15 hrs/week570 (working) / 0 (non-working)
2 yearsNone30 hrs/week1,140 (working) / 0 (non-working)
3 - 4 years15 hrs/week30 hrs/week1,140 (working) / 570 (universal)

Explore More Tools

Income Tax Salary Sacrifice Take-Home Pay Universal Credit Child Benefit Maternity Pay Budget Planner Energy Bills Pension Calculator Stamp Duty

Childcare Cost FAQs

How do I apply for Tax-Free Childcare?
Apply online at childcarechoices.gov.uk. You open a government-backed childcare account and for every £8 you deposit the government adds £2, worth up to £500 per quarter (£2,000 per year) per child. Both parents must each earn at least £2,167 per month (equivalent to 16 hours at the National Minimum Wage) and no more than £100,000 adjusted net income per year. Self-employed parents can use a projected 3-month income to qualify.
What are stretched hours and how do they work?
The funded 30 (or 15) hours are allocated over 38 term-time weeks per year. Your provider can choose to stretch them across up to 52 weeks · instead of 30 hours for 38 weeks you receive around 22 hours per week year-round. This suits families who need childcare over school holidays. Not all providers offer stretched hours, so ask before making arrangements.
Can I use Tax-Free Childcare alongside Universal Credit?
No · you cannot use Tax-Free Childcare and the childcare element of Universal Credit at the same time. The UC childcare element can reimburse up to 85% of eligible childcare costs and is usually more valuable for those on lower incomes. Use the childcarechoices.gov.uk comparison tool to identify which scheme gives your family the greater benefit.
What if my provider charges more than the funded hourly rate?
The government-funded rate paid to providers is set locally and is often lower than the commercial market rate. Providers cannot charge you for the funded hours themselves but are legally allowed to charge for optional extras such as meals, trips, nappies or additional activities during those hours. Always ask your provider for a full written breakdown of what is included in the funded hours and what costs extra.
Do I need to arrange payroll if I hire a nanny?
Yes. A nanny is classed as your employee so you must register as an employer with HMRC, run PAYE payroll each pay period, deduct income tax and employee National Insurance, pay employer NI (13.8% above the secondary threshold) and auto-enrol them into a workplace pension. A specialist nanny payroll service handles this from around £15-25 per month. Tax-Free Childcare can be used to pay a nanny registered with Ofsted.

For informational purposes only · Not financial or legal advice · Childcare entitlements shown are for England 2026/27 · Rules differ in Scotland, Wales and Northern Ireland · Always confirm entitlements with your local authority or at childcarechoices.gov.uk