Childcare Cost: Nanny vs. Daycare Calculator
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We assume 40 hours a week for the nanny. Daycare is a flat monthly tuition, so the hours only change the nanny’s cost.
Nanny hourly rates: Care.com’s average nanny rate by state (the average starting rate nannies post on Care.com; as of October 2025). A second child adds roughly $2–$4/hour per Care.com; we use $3.
Daycare hourly rates: computed from Shortlist’s own source-verified provider prices — the median of each city’s published tuition, converted to an hourly rate using each provider’s published hours (see methodology). As of August 2026. Most programs do not publish a price at all, so each city’s median rests only on the ones that do: .
Employer tax estimates: IRS Publication 926, Household Employer’s Tax Guide and IRS Topic 756 (as of tax year 2025).
Backup care: emergency drop-in care market rates and Shortlist provider drop-in pricing (typically $1,000–$1,800/yr for 10 days of coverage; as of Q1 2026).
Center closure days, staff sick leave: Washington RCW 49.46.210 paid sick leave and Shortlist parent survey (n=124, 2025–2026).
Nanny replacement risk ($2,000/yr): agency placement fees plus 1–2 weeks of gap coverage, amortized over the 1.5–2 yr median nanny tenure (as of Q1 2026).
Socialization ($900/yr): typical Seattle music, gym, and playgroup class fees for one toddler when daycare peer time isn’t replacing them (as of Q1 2026).
Registration ($300) and supply fees ($400): Shortlist provider survey median, applied per child per year (as of Q1 2026). Actual fees vary by program.
How much does a nanny cost compared to daycare?
They are priced differently, so the calculator converts both to an hourly figure for the city you picked. The nanny rate is Care.com’s average nanny rate by state — a state-wide average, not a rate for your city. The daycare rate is Shortlist’s median of the published tuition in your city, converted using each program’s published hours. Daycare is usually cheaper on paper, and the gap narrows or reverses once sick days, closures, backup care and a second child are counted.
When is a nanny cheaper than daycare?
Usually with two or more children. A nanny’s hourly rate rises only modestly for a second child — Care.com puts it at roughly $2–$4 an hour, and this calculator uses $3 — while a second daycare place is close to a second full tuition. Change the number of children above and the comparison recalculates.
Do I have to pay taxes for a nanny?
Yes. Pay a household employee more than $2,800 in a calendar year — the 2025 IRS threshold — and you owe Social Security, Medicare and federal unemployment tax as the employer. The employer’s share of Social Security and Medicare is 7.65% of wages, plus state unemployment. Both figures are from IRS Publication 926 and IRS Topic 756, tax year 2025.
What is the real cost of a nanny after taxes?
Higher than the wage. On top of the hourly rate the calculator adds the employer’s 7.65% share of Social Security and Medicare plus unemployment tax, then workers’ compensation and a payroll service. Switch “Taxes & payroll” off above to see the wage alone, and on to see the all-in figure for your city and your hours.
How many sick days does a nanny get?
In Washington, paid sick leave accrues at one hour for every 40 hours worked, under RCW 49.46.210. Other states set their own minimum, and the leave figures on this page are Washington’s. Beyond paid leave a nanny will also miss unscheduled days, and you are the cover; the calculator carries that as a separate switchable cost.
How many days a year does daycare close?
Centers close for holidays, staff training and seasonal breaks, and unexpectedly for illness or weather. Shortlist’s closure and backup-care figure comes from our parent survey (n=124, 2025–2026) and works out to roughly three weeks a year beyond a nanny’s paid leave. It is on by default and can be switched off above.
How much does backup childcare cost?
Shortlist uses $1,000–$1,800 a year for ten days of cover — about $100–$180 a day — from emergency drop-in market rates and provider drop-in pricing, as of Q1 2026.
How much does infant daycare cost?
More than care for an older child, because infant rooms need the most staff per child. Set each child’s age above and the calculator raises the daycare cost for an infant and lowers it for a preschooler. Be aware of what that figure is: Shortlist publishes one source-verified median per city, across all ages, and the age figure is an adjustment applied to it — not a quoted infant price. Ask any program you are considering for its own infant tuition.
What is a nanny share, and how much does it cost?
A nanny share is two families employing one nanny to care for their children together, splitting a single higher hourly rate. Shortlist has no source-verified data on share rates, so this calculator does not model one and we do not publish a share figure.
Is a nanny share a good idea?
It works when both families have compatible schedules and enough slack to absorb the other family’s holiday or illness. The risk is the exit: if one family leaves, the other usually carries the whole cost until a replacement is found. Because we have no sourced share rates, we do not publish a saving figure to weigh against that risk.