Tax-Free Childcare Calculator
For every £8 you pay into a Tax-Free Childcare account, the government adds £2 — up to £2,000 per child per year.
Tax-Free Childcare is a government scheme that helps working parents with the cost of childcare. For every £8 you pay in, the government adds £2 — effectively covering 20% of your childcare costs, up to £2,000 per child per year.
Use this calculator to see exactly how much the government will contribute and how much you will need to pay yourself.
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What this calculator does
This calculator shows you the split between what you pay and what the government tops up through Tax-Free Childcare. Enter your childcare costs and number of children to get an instant breakdown of your annual and monthly savings.
Who it is for
Working parents who pay for registered childcare (childminders, nurseries, nannies, after-school clubs, holiday clubs) and want to understand how much they could save through the Tax-Free Childcare scheme.
How to use it
Enter your regular childcare spend and whether it is weekly, monthly, or annual. Enter the number of children. Click 'See My Result' to see your personalised breakdown of parent contribution vs government top-up.
How the calculation works
The government contributes £2 for every £8 you pay in (20% of total childcare cost), up to a maximum of £2,000 per child per year (or £4,000 for disabled children). We divide your total spend equally across children, calculate the top-up for each child, and cap it at the annual maximum.
Worked example
You spend £1,000 per month on childcare for 2 children. That is £12,000 per year, or £6,000 per child. The government tops up 20% = £1,200 per child. Since £1,200 is under the £2,000 cap, you receive the full £2,400 per year (£200/month). You pay £9,600 and the government pays £2,400.
Assumptions and limitations
- Assumes all children are eligible for Tax-Free Childcare
- Government top-up capped at £2,000 per child per year (£4,000 for disabled children)
- Both parents (or the sole parent) must be working and earning at least the National Minimum Wage for 16 hours per week
- Neither parent can earn more than £100,000 per year
- Does not check eligibility — you must verify you qualify at gov.uk
Frequently asked questions
How much is Tax-Free Childcare worth?
The government pays £2 for every £8 you pay in, up to £2,000 per child per year. For one child with costs of £10,000 or more per year, that saves you £2,000.
Can I get Tax-Free Childcare and Universal Credit?
No, you cannot receive Tax-Free Childcare and Universal Credit childcare support at the same time. You need to choose which scheme is better for you.
What childcare counts?
Registered childminders, nurseries, nannies, after-school clubs, and holiday clubs all qualify. The childcare provider must be registered with Ofsted (or equivalent).
Related calculators
- Return to Work Calculator — Find out your net monthly gain from returning to work after factoring in childcare costs, commuting, tax, and other work-related expenses.
Related guides
- Tax-Free Childcare vs Other Support: Which Is Best for You? — Compare Tax-Free Childcare with Universal Credit childcare, childcare vouchers, and free hours to find the best option for your family.
- Returning to Work After Maternity Leave: A Financial Guide — A practical guide to understanding the financial implications of returning to work after maternity leave, including childcare costs, tax implications, and suppo
Sources and references
HMRC Tax-Free Childcare (https://www.gov.uk/tax-free-childcare), Childcare Choices (https://www.childcarechoices.gov.uk/)
Last updated
Last reviewed: 2025-04-06.