Childcare vs Stay Home Calculator NZ
This calculator works out whether a second income truly covers childcare, or whether staying home stacks up better financially, once tax and the costs of working are taken into account. You enter the working parent's annual salary, the weekly childcare cost for all children combined, weekly commuting costs, and any other weekly working costs. The calculator works out net pay after PAYE tax and the ACC earner levy, converts it to a weekly figure, then subtracts childcare, commuting and other costs to show your net weekly gain, or loss, from working rather than staying home. It also shows net pay per week and total childcare and costs per week separately, so you can see exactly where the money goes. A headline salary can look generous until childcare for one or more young children, tax and commuting are stripped out, and the real gain from working can be surprisingly small in the early years, sometimes even negative, before growing once children start school and childcare costs fall away. Use it to see the money side clearly, then weigh that weekly figure against the non-financial parts of the decision, such as career progression, KiwiSaver contributions and long-term earning potential. This is an estimate based on standard tax rates only, and does not include Working for Families or the childcare subsidy, both of which could lift the numbers.
Net pay uses the current PAYE brackets and the ACC levy (1.75% up to $156,641, from 1 April 2026). 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.