Compare Nanny vs Daycare Costs

$0/year difference
Nanny costs include estimated employer payroll taxes: Social Security (6.2%), Medicare (1.45%), FUTA (0.6% on first $7,000), and state unemployment tax (SUTA). These are estimates and actual rates vary by state and year.

Nanny vs Daycare: Which Is Right for Your Family?

The choice between a nanny and daycare depends on your family’s unique needs, budget, and circumstances. For a single child, center-based daycare is typically 30-50% cheaper than a full-time nanny. However, for families with two or more children, a nanny often becomes cost-competitive or even cheaper because one caregiver can watch multiple children at the same hourly rate.

Beyond cost, consider these factors: nannies offer more flexibility in scheduling, personalized attention for your child, and care in your own home. Daycare centers provide structured curricula, social interaction with peers, and built-in backup coverage when a teacher is out. Some families use a combination of both — part-time daycare for socialization and a nanny for the remaining hours.

Use our Nanny Cost Calculator for a detailed breakdown of total nanny expenses including payroll taxes, or try the Nanny Share Calculator to see how splitting a nanny with another family changes the math.