Daycare vs. Nanny vs. Stay-at-Home Cost Calculator
Analyze whether returning to work makes financial sense after paying for infant/child care. Weighs daycare tuition, nanny payroll taxes (Schedule H), Dependent Care FSA tax write-offs, and your 'True Take-Home Hourly Wage'.
Family & Incomes
Pre-tax annual compensation of the parent considering taking a career pause.
Care Rates & FSA
US national benchmark: $1,100 to $2,200/mo per infant/toddler.
US standard: $20 to $30/hr for 40 hours per week.
Commuting fuel, parking, transit passes, work apparel, daily lunches.
Vale a pena continuar trabalhando: Mesmo após pagar $15,100 de creche e todos os impostos, você ainda contribui com $17,000 líquidos por ano ($1,417/mês) para o orçamento familiar.
3-Way Household Financial Comparison
| Financial Measure | Option 1: Daycare Center | Option 2: Private Nanny | Option 3: Stay-at-Home Parent |
|---|---|---|---|
| Evaluating Parent Gross Earnings | $55,000 | $55,000 | $0 (Pausa) |
| Marginal Federal, FICA & State Taxes | -$18,700 | -$18,700 | $0 |
| Commuting & Work Overhead | -$4,200 | -$4,200 | $0 (Economizado) |
| Annual Gross Childcare Expense | -$16,800 | -$55,886 | $0 |
| Tax Offsets (DCFSA / Childcare Credit) | +$1,700 | +$1,700 | $0 |
| True Annual Net Cash Brought Home | $17,000 | $0 | $0 (Neutro) |
| True Net Hourly Wage (2,000 hrs/yr) | $9/h | $0/h | - |
How it works
1
Enter your child count, the gross salary of the parent considering staying home, and primary earner income.
2
Input local daycare tuition or nanny hourly rates alongside monthly work commuting and wardrobe costs.
3
Review your true net annual take-home contribution and hourly earnings to inform your family career decision.
Frequently asked questions
How does a Dependent Care FSA lower childcare costs?
A Dependent Care FSA enables working parents to contribute up to $5,000 annually in pre-tax payroll dollars toward qualifying childcare services (daycare, preschool, day camps). Because these funds avoid federal income and FICA taxes, families save an average of $1,250 to $1,750 per year.
What is the Nanny Tax (IRS Schedule H)?
Federal law classifies nannies and in-home caregivers as statutory household employees. Families paying above the annual threshold ($2,700) must withhold and match 7.65% for FICA (Social Security & Medicare) and pay federal (FUTA) and state (SUTA) unemployment taxes, adding roughly 10% to 11% in employer tax overhead.
What is the 'True Take-Home Hourly Wage' concept?
This metric deducts marginal federal, FICA, and state taxes, work commuting expenses, and net childcare costs from the evaluating parent's gross salary, dividing the residual cash by 2,000 annual working hours. Many working parents discover their actual net earnings amount to just $3 to $6 per hour after childcare.
Is this tool free?
Yes. The site is supported by ads, so you never pay or need to create an account.
Does it work on mobile?
Yes. The page adapts to your screen and does not require installing any app.