Compare the true costs of daycare versus hiring a nanny with our comprehensive calculator. Includes tax benefits (DCFSA & CDCC), commute time, mileage costs, and productivity impacts to help you make the best childcare decision. Also considering hosting an au pair? Compare au pair, nanny and daycare costs, including agency fees, room and board, and backup care.

Household & Global
$/hr
$/mile
Taxes & Benefits
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$
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Daycare Costs
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$
Nanny Costs
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$/mo
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$/mo
Verdict
Daycare appears cheaper (after-tax, including time).
You can change assumptions above to see how the verdict changes.
After-Tax Net (Annual)
Daycare$21,004
Nanny$52,424
Tax Benefits (Annual)
Daycare DCFSA savings$2,250
Daycare CDCC$0 (35%)
Daycare total tax benefit$2,250
Nanny DCFSA savings$2,250
Nanny CDCC$0 (35%)
Nanny total tax benefit$2,250
Time & Commute Value (Annual)
Daycare time$3,200
Daycare miles$1,094
Daycare productivity$960
Nanny time$0
Nanny miles$0
Nanny productivity-$1,920
Cost Breakdown Chart
DaycareNanny$0$15,000$30,000$45,000$60,000
  • Cash
  • DCFSA Savings
  • CDCC Credit
  • Time Cost
  • Mileage Cost
  • Productivity

Annual amounts; negative bars reduce total cost

Detailed Line Items
ItemDaycareNanny
Cash childcare cost (annual)$18,000$56,594
DCFSA used$7,500$7,500
DCFSA tax savings$2,250$2,250
Expenses eligible for CDCC$0$0
CDCC rate35%35%
CDCC amount$0$0
Time + commute (incl. productivity)$5,254-$1,920
After-tax net cost (annual)$21,004$52,424

Notes:

(1) DCFSA benefits reduce both remaining qualified expenses and the $3,000/$6,000 CDCC expense limit, preventing a double benefit

(2) CDCC treated as nonrefundable and capped by your available liability input

(3) Productivity hours are valued at your chosen $/hour

(4) Non-live-in nanny hours over 40 use 1.5× overtime; paid nanny wages use the entered weeks per year