What is the Childcare Cost?
Returning to work with young children involves a calculation most people never do properly. Full-time childcare can cost as much as a median salary, and once commuting, work clothes and lunches are added, the net gain is often surprisingly small.
The right frame is not "does it pay this year" but "what does stepping out cost over a career" — pension contributions, promotions and earnings growth all compound.
Formula & worked example
Net gain = Salary − childcare − commuting and work costs
Worked example: a 32,000 net salary with childcare at 65 a day, five days a week for 48 weeks costs 15,600. With 2,400 of commuting costs, that leaves 14,000 — 56% of the salary consumed, and an effective hourly rate of about 7.29.
How to use this childcare cost calculator
- Use your net salary, after tax and pension.
- Enter the actual daily childcare rate, including any registration or holiday fees.
- Deduct any government childcare support or employer benefit you receive.
- Include commuting, work clothing, and lunches bought out.
Smart tips
- Look up every childcare subsidy available — many families do not claim what they are entitled to.
- Compare part-time options in the table. Three days often nets nearly as much as five after costs.
- Childcare costs fall sharply once children start school, but the career gap does not close as easily.
- Continued pension contributions and career progression are worth far more than one year's net gain.
- Grandparent or shared-care arrangements can transform the numbers — cost them properly rather than assuming.
Frequently asked questions
Is it worth going back to work after having a child?
Compare net salary against childcare and commuting costs. Even a small net gain often pays off long-term through pension contributions and career progression.
How much does childcare cost?
Full-time nursery commonly runs 60–90 per day in major cities, meaning 14,000–22,000 a year for five days a week.
Should I work part-time instead?
Often yes. The table here shows that fewer days can leave nearly the same net amount, since childcare falls proportionally while some costs do not.
What am I missing if I only compare this year?
Pension contributions, salary progression, and the difficulty of re-entering at the same level. These usually outweigh a single year's net figure.
Want the theory behind the numbers? Read our family finance guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 8 Sep 2026. How we check these numbers.