Not generic averages. Enter your actual situation — city, kids, schedule — and see what each care type really costs, all-in.
Most families don't start with the care type they end up with. Life changes, and the math changes with it.
| Life event | Likely switch | Why the math shifts |
|---|---|---|
| Second child enters care | Daycare → Nanny | Nanny cost barely rises; two daycare spots nearly doubles |
| Child turns 3 | Nanny → Preschool | Preschool rates drop 15-25%; socialization benefits increase |
| Parent goes part-time | Full-time center → Nanny share | You stop paying for hours you don't use |
| Schedule becomes irregular | Center → Nanny | Centers have rigid hours; nannies flex with you |
| One child ages out | Nanny → Center | Single-child nanny costs more than a center spot |
| Move to the suburbs | Nanny share → Home daycare | Fewer share families nearby; home daycares more available |
If you pay a nanny more than $2,700/year (2024 threshold), you're a household employer. That means FICA matching (7.65% of gross wages), federal unemployment tax (~$42/year), and state unemployment tax (varies). Budget an extra 10% on top of the nanny's gross pay. Services like GTM Payroll or HomePay run $1,000-1,500/year but handle all the filings.
Nannies get sick, take vacations, and have emergencies. Budget 10-15 days/year of backup care at $200-350/day through agencies like Bright Horizons or Kinside, or build a co-op with other families. Centers handle this automatically — a teacher's absence is the center's problem, not yours.
A center that runs 7:00am-6:00pm gives you full coverage for a standard workday plus commute. A Montessori that runs 8:30am-3:00pm leaves a gap you'll fill with a nanny, after-school care, or a scramble. Factor in the cost of filling those gaps — even informal arrangements have a price.
A Dependent Care FSA lets you set aside $5,000 pre-tax per household. At a 30% marginal tax rate, that's $1,500 in real savings. The Child and Dependent Care Tax Credit covers up to $3,000 for one child ($6,000 for two+), but you can't double-dip — dollars claimed under FSA can't also be claimed for the credit. Run the numbers both ways.
The brochure version vs. the reality version.
| Center | Home daycare | Nanny | Nanny share | |
|---|---|---|---|---|
| Typical ratio (infants) | 1:4 | 1:4 (often lower) | 1:1 | 1:2-3 |
| Typical hours | 7am-6pm | 7am-5:30pm | Whatever you set | Negotiated (8am-5pm typical) |
| Schedule flex | Low — late fees after 6pm | Low-medium | High | Medium — must coordinate |
| Sick day policy | Child stays home | Child stays home | Nanny still comes (unless nanny is sick) | Varies by share agreement |
| Socialization | High — built in | Medium — small group | Low — you arrange playdates | Medium — 2-3 kids together |
| Curriculum | Structured, varies by philosophy | Informal, provider-dependent | You set it (or don't) | You set it (or don't) |
| Backup when provider is out | Center's problem | Your problem | Your problem | Your problem |
| Regulatory oversight | Licensed, inspected | Licensed (varies by state) | None unless you verify | None |
| Multi-kid discount | 5-10% sibling discount | 5-15% sibling discount | +$2-5/hr per additional child | Cost split per family |
| The thing nobody warns you about | Closures for holidays, teacher workdays, and summer weeks still cost tuition | If the provider takes a vacation, you need backup | You're an employer with tax obligations, and turnover is devastating | When the other family leaves, your cost doubles overnight |
The calculator gives you cost. Shortlist gives you everything else: editorial reviews, inspection records, staff ratios, and pricing for every provider in your city.
Already know which care type you want? See what it really costs per hour. Not sure which neighborhoods work? Try the Commute Zone Calculator.