🇬🇧 United Kingdom

Childcare Cost Calculator

Calculate your childcare costs for 2025/26, see your free hours entitlement with the September 2025 expansion, and find the best government support scheme for your family.

Free hours entitlement depends on age
hours
Full-time is typically 40-50 hours/week
£
UK average: £5-£8/hour depending on region
Yes
Required for 30 free hours and TFC eligibility
No
London childcare costs are typically 20-25% higher

Try another scenario

How to Use This Calculator

My Childcare Costs tab

Select your child's age group, enter the hours per week and hourly rate you pay, and toggle whether both parents are working. The calculator shows your gross annual cost, your free hours entitlement, and the net cost after free hours are applied. From September 2025, working parents of children aged 9 months and over can access 30 free hours per week during term time.

Tax-Free Childcare tab

Enter your annual childcare cost (after free hours) and number of children. The calculator shows how much the government will top up via a Tax-Free Childcare account — for every £8 you deposit, the government adds £2. The maximum top-up is £2,000 per child per year (£4,000 for disabled children).

Best Scheme tab

Compare Tax-Free Childcare, the Universal Credit childcare element, and employer vouchers (legacy scheme) side by side. Enter your childcare cost, household income, and toggle which schemes apply to you. The calculator recommends the scheme that saves you the most.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, employer, or save it for later.

The Formula

Childcare costs and support are calculated as follows:

Annual Gross Cost = Hours/week × Hourly Rate × 52 weeks

Free Hours Value = Free Hours/week × Hourly Rate × 38 weeks (term-time)

Annual Net Cost = Annual Gross Cost − Free Hours Value

Tax-Free Childcare Top-up = Net Cost × 20% (capped at £2,000/child/year)
Parent deposits £8 → Government adds £2 → £10 available

UC Childcare Element = Monthly Cost × 85%
Capped at £1,031.88/month (1 child) or £1,768.94/month (2+ children)

Free hours are funded for 38 term-time weeks. If you use childcare year-round (52 weeks), you pay the full rate for the remaining 14 weeks. Some providers offer "stretched" hours across 52 weeks at fewer hours per week.

Tax-Free Childcare and Universal Credit childcare cannot be used at the same time — choose the one that gives you the highest saving.

Example

Sarah — Marketing Manager, 2-year-old son, Bristol

Sarah and her partner both work full-time. Their son attends nursery 40 hours per week at £7/hour. As working parents, they qualify for 30 free hours per week from September 2025.

My Childcare Costs tab

Age group2-3 years
Hours per week40
Hourly rate£7
Working parentsYes
Annual gross cost£14,560
Free hours (30hrs × 38 weeks)£7,980
Annual net cost£6,580
Monthly net cost£548

Free hours save Sarah £7,980 per year. She then uses Tax-Free Childcare on the remaining £6,580, getting a £1,316 government top-up — reducing her actual cost to around £5,264 per year.

Best Scheme tab

With a household income of £65,000 and no Universal Credit, Tax-Free Childcare is the best option — saving £1,316/year via the 20% government top-up on the net childcare cost.

FAQ

From September 2025, all eligible working parents in England can access 30 free hours per week for children aged 9 months to 4 years (term-time only, 38 weeks/year). Both parents must be working at least 16 hours per week at National Minimum Wage, with each parent earning under £100,000. All 3-4 year olds get 15 universal hours regardless of parent working status. Non-working parents of under-3s receive no free hours.
Tax-Free Childcare (TFC) is a government scheme where for every £8 you deposit into a TFC account, the government adds £2 — a 20% top-up. The maximum government contribution is £2,000 per child per year (£4,000 for disabled children), on a maximum deposit of £8,000 per child. Both parents must be working and earning between 16hrs × NMW and £100,000. You cannot use TFC alongside employer vouchers or Universal Credit childcare element.
Yes. You can use your free hours entitlement (15 or 30 hours) and then pay for any additional hours via your Tax-Free Childcare account. This way, you get the free hours saving first, and then the 20% government top-up on whatever you pay above the free hours. This combination maximises your total saving. For example, if your child uses 40 hours but gets 30 free, you only pay for 10 hours — and that payment through TFC gets the 20% bonus.
If you are on Universal Credit and working, you can claim back 85% of your childcare costs, up to £1,031.88/month for one child or £1,768.94/month for two or more children (2025/26 rates). The childcare must be with an Ofsted-registered provider. You pay upfront and claim back through your UC award. You cannot use the UC childcare element and Tax-Free Childcare at the same time — choose whichever gives you the higher saving.
Employer childcare vouchers closed to new entrants in April 2018. However, if you were already enrolled before that date, you can continue using the scheme. Basic rate taxpayers can sacrifice up to £243/month, saving on income tax and National Insurance. If you are still on vouchers, compare the saving with Tax-Free Childcare — for most families, TFC is now more generous, but vouchers can be better for higher-rate taxpayers with lower childcare costs.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Childcare Cost Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/uk/childcare-cost-calculator" width="100%" height="600"></iframe>