How much should childcare cost relative to income?

The US Department of Health and Human Services defines affordable childcare as 7% or less of household income. For a $75,000 household, that is $5,250/year. However, the national average cost is $18,000–27,000/year per child.

What is the average annual cost of childcare in the US?

Center-based infant care averages $14,000–27,000/year depending on state. Massachusetts ($22,600) and California ($20,800) are among the most expensive. Mississippi ($6,100) and Arkansas ($7,200) are most affordable.

What tax benefits help with childcare costs?

The Child and Dependent Care Tax Credit covers 20–35% of up to $3,000 ($6,000 for two children) in childcare expenses. Dependent Care FSAs allow $5,000/year of pre-tax childcare spending.

Childcare Cost as Percent of Income Calculator

Formula Definitions

The Childcare Cost as Percent of Income Calculator works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the Childcare Income Percent.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the Childcare Income Percent.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Childcare Cost as Percent of Income Calculator input fields.
Adjust settings. Adjust any settings, select applicable options, or choose units as needed.
Calculate the result. Press Calculate to compute the result using the underlying formula.
Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input: A value entered into the calculator to be processed.
Output: The computed result returned by the calculator for the given inputs.
Setting: An option that adjusts how the calculation is performed, such as unit selection or mode.
Childcare cost income: A key concept referenced by the Childcare Income Percent: Calculate what percentage of household income goes to childcare. Compares against the US HHS affordability threshold (7% of household income) and shows the actual childcare burden for families at different income levels.
Childcare affordability: A key concept referenced by the Childcare Income Percent: Calculate what percentage of household income goes to childcare. Compares against the US HHS affordability threshold (7% of household income) and shows the actual childcare burden for families at different income levels.
Daycare cost income ratio: A key concept referenced by the Childcare Income Percent: Calculate what percentage of household income goes to childcare. Compares against the US HHS affordability threshold (7% of household income) and shows the actual childcare burden for families at different income levels.
Childcare burden: A key concept referenced by the Childcare Income Percent: Calculate what percentage of household income goes to childcare. Compares against the US HHS affordability threshold (7% of household income) and shows the actual childcare burden for families at different income levels.
Working parent childcare: A key concept referenced by the Childcare Income Percent: Calculate what percentage of household income goes to childcare. Compares against the US HHS affordability threshold (7% of household income) and shows the actual childcare burden for families at different income levels.

Childcare Cost as Percent of Income Calculator

Recipe Scaler

Formula Definitions

How to Use This Calculator

Glossary and Definitions

Frequently Asked Questions