Stay at Home Parent vs Daycare Calculator

Is the second paycheck worth it once daycare is paid? Enter the job's salary, your childcare bill and the everyday costs of going to work. The calculator taxes the income at your household's rates, subtracts childcare and work costs, and shows what is really left each month and per hour.

Last updated: October 24, 2026

How to use the Stay at Home Parent vs Daycare Calculator

1. Enter the salary of the job the parent would keep or take, and the hours it takes including the commute.
2. Add the rest of your household income and a state income tax rate, so the second income is taxed at the right bracket.
3. Enter childcare: number of children in care, monthly cost per child and how many months a year you pay.
4. Fill in work costs: commute miles, parking, lunches, clothes and anything else you only spend because you work.
5. Press Calculate net gain and compare the net per month and per hour with what staying home is worth to your family.

How the net gain of working is calculated

• Net gain = gross salary + employer benefits − extra taxes − childcare − costs of working
• Extra federal tax = federal tax on household income with the job − federal tax without it, minus the Child and Dependent Care Credit
• Payroll tax = salary × 7.65% (6.2% Social Security + 1.45% Medicare); FSA money is exempt
• Effective hourly wage = net gain ÷ (hours per week × 48 working weeks)

Example (the default inputs): a $48,000 job in a married household that already earns $75,000, with two children in daycare at $1,100 each per month. Childcare costs $26,400 a year, $7,500 of it paid through a dependent care FSA. Federal tax rises by $4,860, Social Security, Medicare and a 4.5% state tax add $4,920.75, and there is no care credit left because the FSA already uses up the $6,000 expense limit. After $5,256 of commuting, meals, clothes and other work costs, the family keeps $6,563.25 a year: about $547 a month, or $3.04 for each hour of work and commuting.

Childcare budget rule of thumb

The U.S. Department of Health and Human Services treats childcare as affordable when it costs no more than 7% of household income, a level many families exceed with infants and toddlers.

Ways to improve the numbers

• Use a dependent care FSA through either parent's employer: up to $7,500 a year comes out of pay before tax.
• Ask about part-time or remote schedules. Fewer care days and fewer commutes cut costs faster than they cut pay.
• Remember that costs drop as children grow: preschool is cheaper than infant care, and school-age children need only before- and after-school care.
• Check employer benefits such as a 401(k) match or subsidized family health insurance, and enter their value as benefits.

Frequently asked questions

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