Free UK Nursery Cost Calculator

What goes into the calculation

Three figures drive the result: your child's funded hours entitlement, your local authority's funded rate per hour, and the private top-up rate your nursery charges above that rate. Funded hours are set by government policy: 15 hours per week for eligible 2 year olds, and up to 30 hours per week for 3 and 4 year olds whose parents meet the working eligibility test.

Your local authority (LA) sets the rate paid to nurseries for each funded hour. This varies across England, from around £5 per hour in some northern areas to over £9 per hour in Inner London. Nurseries may charge a top-up rate for hours beyond the funded entitlement, and many add a charge for consumables such as meals and nappies. You can include both to get a more accurate monthly total.

The result is your estimated monthly net cost after government support is applied. It assumes attendance for the number of weeks you enter: typically 38 to 51 weeks per year depending on whether your nursery operates term-time or year-round. The annual total is divided by 12 to give a consistent monthly figure.

Tax-Free Childcare is a separate government scheme that tops up your childcare payments. For every £8 you pay in, the government adds £2, up to £500 per quarter (£2,000 per year). Tax-Free Childcare can be used alongside funded hours; it applies to the hours you pay for privately, not the funded portion. See our glossary entries on 30 hours entitlement and Tax-Free Childcare for further detail.