Is It Worth Going Back to Work?
Calculate your real take-home pay after childcare costs
Your Income
Childcare Details
How Childcare Costs Compare
Tax Credits That Can Help
Child & Dependent Care Tax Credit
Claim 20-35% of up to $3,000 for one child or $6,000 for two or more. Maximum credit: $1,050 (1 child) or $2,100 (2+ children). Non-refundable — reduces your tax bill but can't result in a refund.
Dependent Care FSA
Set aside up to $5,000 pre-tax per year ($7,500 starting 2026) for childcare expenses. Saves on both income tax and FICA taxes. Must be offered by your employer. Use it or lose it by year-end.
Common Questions
How accurate is this calculator?
This calculator provides estimates based on average childcare costs and simplified tax calculations. Actual costs vary by provider, location within your state, and your specific tax situation. Use it as a starting point for your financial planning.
What about the long-term cost of staying home?
If the numbers look tight, consider the long-term impact: staying in the workforce means continued career growth, retirement contributions (401k match, Social Security credits), maintaining professional skills and network, and higher future earning potential. A few years of break-even childcare costs can pay off long-term.
Is a nanny more expensive than daycare?
Generally yes — nannies average $40,000-$49,000/year nationally. However, if you have 2+ children, a nanny can become cost-competitive since you pay one salary regardless of the number of children, while daycare charges per child. Nanny sharing with another family is another option to reduce costs.
Does childcare get cheaper as my child gets older?
Yes. Infant care is the most expensive because of lower caregiver-to-child ratios. Toddler care (ages 1-3) is typically 10-20% less, and preschool care (ages 3-5) is 20-30% less. Some states offer free universal pre-K for 4-year-olds, which can eliminate costs entirely for that year.
Can both parents claim childcare tax credits?
If married filing jointly, you file one combined return. The CDCTC is limited by the lower-earning spouse's income. The Dependent Care FSA is per household ($5,000 total), not per parent. If filing separately, each spouse can claim up to $2,500 FSA and the CDCTC max drops to $3,000.
Related Tools
This calculator provides estimates for informational purposes only. Tax calculations are simplified and may not reflect your exact situation. Childcare costs are statewide averages and vary by provider and location. Consult a tax professional for personalized advice.