Childcare cost calculator
Nursery fees, less the funded hours your child is entitled to and the Tax-Free Childcare top-up, to show what you actually pay.
How this is calculated
The cost before help is hours a week, times weeks a year, times the hourly rate.
Funded hours are taken off at your provider's rate: 30 hours a week for 38 weeks for eligible working parents of children from 9 months to 4 years, or 15 hours for any 3 or 4 year old. These are England's rules.
Tax-Free Childcare adds £2 for every £8 you pay in, which is 20% of what you pay, up to £2,000 a year per child. It can be used alongside funded hours on the hours you pay for.
Many providers charge for meals, nappies or activities on funded hours. Add those to the hourly rate if yours does.
Rates used · 2026/27
| Working parent funded hours | 30 a week, 38 weeks, 9 months to 4 years |
| Universal funded hours | 15 a week for all 3 and 4 year olds |
| Tax-Free Childcare | £2 for every £8, up to £2,000 a year per child |
| Income limit | £100,000 adjusted net income per parent |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
40 hours a week for 51 weeks at £8 an hour is £16,320 a year. Working parents of a two year old get 1,140 funded hours worth £9,120, and Tax-Free Childcare adds £1,440 towards the rest, leaving £5,760 a year, or £480 a month.
Common questions
Can I use Tax-Free Childcare and funded hours together?
Yes. Funded hours reduce the bill, and Tax-Free Childcare can then pay for the hours you are charged for.
What if one of us earns over £100,000?
You lose both the working parent funded hours and Tax-Free Childcare, though a 3 or 4 year old still gets the universal 15 hours. Pension contributions that bring adjusted net income back under £100,000 can restore them.
Does this work outside England?
Not exactly. Scotland, Wales and Northern Ireland have their own funded childcare schemes. Tax-Free Childcare is UK-wide.
Why is my bill higher than this?
Usually because of charges for meals and consumables on funded hours, or because funded hours are stretched over more weeks at fewer hours a week.