Calculators
Childcare Cost vs Working Calculator
Calculate the net financial gain from a second earner working after taxes, childcare and work-related costs, and the effective hourly pay.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
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What people use it for
- Deciding whether to return to work
- Comparing part-time and full-time options
- Family budgeting
- Career planning
About this tool
What the Childcare Cost vs Working Calculator does
For many families, the cost of childcare takes a large share of a second earner’s pay. Subtracting taxes, childcare and work costs such as commuting from gross pay shows the net gain from working, though long-term career and retirement benefits also matter.
It also works as a childcare cost vs working calculator.
Formula
- Net gain = salary × (1 − tax) − childcare + subsidies − work costs
- Hourly = net gain ÷ hours including commuting
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Second earner gross salary | $45,000 |
| Tax and payroll deductions on that salary | 25% |
| Annual childcare cost | $18,000 |
| Childcare tax credits or subsidies | $1,200 |
| Commuting and other work costs | $3,000 |
| Employer retirement contribution | $1,800 |
| Hours worked per year incl. commute | 2,000 |
| Result | Value |
|---|---|
| Net annual gain from working | $13,950 |
| Effective hourly gain | $6.98 |
| Including employer retirement contributions | $15,750 |
| Childcare as share of salary | 40.0% |
How to read the result
Childcare costs fall as children reach school age, while career earnings usually rise, so the long-term picture often favours staying in work.
Dependent care FSAs and childcare tax credits can reduce the net cost of childcare.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Short-term gains can be small, but long-term earnings, retirement savings and career progression often make it worthwhile.
Options include dependent care FSAs and child and dependent care credits in the US; other countries have their own schemes.
Yes; childcare is a household cost, not only the second earner's.
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