Does a second income cover childcare?

Sometimes only just, in the early years. Once tax, childcare for one or more children and working costs are taken out, the net gain from a second income can be small, though it usually grows as children start school and childcare falls away.

Should one parent stay home?

It is a personal decision with financial and non-financial sides. This calculator shows the money clearly, the net left after childcare and costs, so you can weigh that against career, wellbeing and family preferences.

What about the long-term career cost of staying home?

Time out of work can affect future earnings, KiwiSaver and progression, so even a small short-term gain from working may be worth more over a career. Consider the long view alongside the weekly numbers.

Childcare vs Stay Home Calculator

This New Zealand calculator works out whether a second income covers childcare, or whether staying home stacks up. The headline salary can look worthwhile until childcare for one or more children, tax and working costs are taken out. You enter the working parent's pay and the costs, and the tool shows the net left over each week, so you can weigh the money clearly against the career and family sides of the decision.

Working parent's salary

Childcare per week (all children)

Commuting per week

Other working costs per week

net gain per week from working over staying home

Net pay per week$0

Childcare and costs$0

Net pay uses the 2025/2026 tax brackets and the ACC levy. This is the money side only; Working for Families and the childcare subsidy can lift the gain, and staying home has long-term career effects. Estimate only, not financial advice.

How it works

The calculator works out the working parent's net pay after tax and the ACC levy, as a weekly figure, then subtracts the weekly childcare for all children, commuting and other working costs. What is left is the net weekly gain from working rather than staying home. If childcare for several young children is high, that gain can be small or even negative in the early years, before rising as the children start school.

Worked example

A $60,000 salary nets about $930 a week. With $450 childcare, $60 commuting and $50 other costs, that is $560 of costs, leaving around $370 a week of net gain from working. That figure, and how it will change as childcare falls, is what to weigh against the non-financial sides.

Related calculators

Return to Work Worth It Calculator: returning to work.
Childcare Cost Calculator: childcare costs.
Second Income Budget Calculator: combined budget.
Baby Number Two Calculator: a second child.

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