Childcare Costs Calculator (Tax-Free Childcare)

Calculate childcare costs with Tax-Free Childcare and 30 hours free entitlement.

Last updated: April 2026 · Source: GOV.UK — Tax-Free Childcare

£

Your Annual Childcare Cost

£10,500.00

£875.00/month

Total Saving from Govt Support

£2,000.00/year

Gross Annual Cost£12,500.00
Tax-Free Childcare-£2,000.00
You Pay£10,500.00

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Childcare costs in the UK vary significantly by type and region. A full-time nursery place for a child under two typically costs £250-£350 per week outside London and £300-£400+ per week in London. Childminders are often slightly cheaper at £200-£300 per week, while after-school clubs cost £50-£80 per week.

Tax-Free Childcare (TFC) is the main government scheme for working families. For every £8 you pay in, the government adds £2, up to a maximum of £2,000 per child per year (£4,000 for disabled children). Both parents must earn at least the equivalent of 16 hours at minimum wage and no more than £100,000 each.

This calculator lets you compare the true cost of different childcare options after applying government support. It factors in Tax-Free Childcare, the childcare element of Universal Credit (which covers up to 85% of costs up to £1,014.63/month for one child), and the free hours entitlement for 2, 3 and 4-year-olds.

Example: 2-year-old in nursery, £280/week, using Tax-Free Childcare

  1. Annual nursery cost: £280 x 52 = £14,560
  2. Less 15 hours free entitlement (38 weeks): -£3,990 approx.
  3. Net cost to pay: £10,570
  4. Tax-Free Childcare top-up (20%): £2,000 (max)
  5. Your actual cost: £8,570/year (£164.81/week)

Source: GOV.UK — Tax-Free Childcare

Frequently Asked Questions

What does the Childcare Costs Calculator (Tax-Free Childcare) do?
Calculate childcare costs with Tax-Free Childcare and 30 hours free entitlement. All calculations are performed in your browser using official UK rates and thresholds.
Are benefit amounts accurate?
This calculator uses the published 2025/26 benefit rates. However, actual entitlements depend on a full assessment by the Department for Work and Pensions (DWP) and may differ from estimates.
How do I claim this benefit?
You can apply for most benefits through GOV.UK or your local Jobcentre Plus. Some benefits require an online application; others may require a phone call or paper form.