True cost comparison of nanny vs nursery childcare.

Nanny vs nursery is a major childcare decision with financial implications that shift significantly with the number of children. Nursery cost scales per child: 200-350/week/child in metropolitan areas. Nanny cost is largely fixed regardless of children: 500-800/week for a qualified nanny, plus 20-25% employer costs (tax, NI, holiday, sick pay).

The math: one child in nursery at 300/week = 15,600/year. Nanny at 650/week + 25% = 42,250/year. Nursery wins clearly. Two children in nursery = 31,200/year. Nanny still 42,250 (same person, same cost). Narrower gap. Three children in nursery = 46,800/year, nanny same 42,250 — nanny wins.

The financial break-even typically sits at 2-3 children. But non-financial factors matter heavily: nursery provides socialisation, nanny provides personalised care and flexibility. Often decision is driven by needs beyond cost alone.

How to use it

Input weekly nanny wage (net pay), employer costs percentage (typically 20-25% additional), weekly nursery cost per child, and number of children needing childcare. The tool shows annual cost for each option.

What the result means

Annual cost of each option tells you the winner for pure financial comparison. Break-even number of children shows when nanny becomes cheaper. If you have 2 children, the difference is often narrow enough that non-financial factors dominate.

Decision tool, not financial advice.

Quick example

With weekly nanny net wage of 650 and employer costs of 25% (plus weekly nursery per child of 280 and number of children of 2), the result is Nursery. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Weekly Nanny Net Wage, Employer Costs %, Weekly Nursery Per Child, Number of Children, and Weeks Per Year. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

What's happening under the hood

Nanny annual is weekly wage × (1 + employer costs) × weeks. Nursery annual is per-child cost × children × weeks. Winner is lower total. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What the number doesn't include

Life events generate side costs: time off work, travel for guests, aftercare, lost weekends. The figure here covers the direct costs. Noting the indirect ones alongside avoids the post-event surprise.

What this doesn't capture

Life events generate side costs the figure doesn't include: time off work, lost income, travel for others, aftercare. Add 10–15% to the direct number as a buffer; the items you haven't thought of usually fill most of it.