How to interpret the result
Use this tool as a planning estimate. Real nursery invoices can differ because funded hours are often term-based and providers may apply extras (for example meals, nappies, or session structure).
If either parent is above £100,000 adjusted net income, Tax-Free Childcare eligibility can be lost. That cliff means small income changes can have a large net effect.
Why £100k matters for childcare
Tax-Free Childcare eligibility is per parent: if either parent exceeds £100,000 adjusted net income, the household loses access. A relatively small pension sacrifice can restore eligibility and recover up to £2,000/year per child.
Community discussions consistently highlight this cliff as one of the most under-modelled financial planning areas. Check your position with the calculator above, then explore salary sacrifice strategies to see if it makes sense for your household.
Official policy details: GOV.UK childcare support · community discussion: UKPF Reddit childcare subsidy thread