Ontario family cost planner

Nanny or daycare—what does each option really cost?

Use your actual quotes to compare monthly and annual costs in Canadian dollars. The nanny side separates wages from an adjustable household-employer allowance; the daycare side uses the fee your provider gave you.

Build your comparison

Enter the amount your family expects to pay—not an advertised market average.

1 Nanny
$/hr

Gross hourly wage in CAD.

hours
weeks
%

Add your own planning percentage for employer CPP/EI, vacation pay or other payroll costs. At 0%, the result is wages only.

$/mo

For example: payroll service, transit or benefits.

2 Licensed daycare
$/day

Use the net fee the provider says you will pay.

days
weeks
$/mo

If unsure, ask whether the licensed provider is enrolled and whether the quote is your net parent fee.

child(ren)

Daycare is multiplied per child; nanny wages are not.

$/mo

Subtracted from the daycare estimate only. Use 0 unless you have a known monthly amount to allocate.

Cost is only half the decision

Use these prompts as a short family checklist. The practical winner can differ from the lower-cost result.

Flexibility
Nanny: May better fit early starts, late finishes and multiple drop-off schedules.
Daycare: Set operating hours; late pickup policies may apply.
Sick coverage
Nanny: One caregiver means a single absence can remove care for the day.
Daycare: Staff coverage may keep the program open, but exclusion rules apply when your child is ill.
Socialization
Nanny: Smaller environment with individualized attention; outings depend on the care plan.
Daycare: Built-in peer group, routines and group activities.
Logistics
Nanny: Care comes to your home; clarify transportation, meals and household duties in writing.
Daycare: Add commute time, closure dates, supplies and wait-list timing to the decision.

Ontario planning guide

The calculator uses your inputs. These notes explain the two systems without pretending every family receives the same fee or payroll bill.

How CWELCC changed licensed care

Ontario’s Canada-wide Early Learning and Child Care agreement has reduced parent fees at participating licensed programs serving eligible children. Through 2025–26, the program continued working toward an average of $10-a-day care—an Ontario-wide target, not a universal fee charged by every provider.

Participation matters: a provider must be licensed and enrolled, eligibility depends on the child, and the amount a family saves varies by provider, age group and region. Ask for the net fee you will actually pay and enter that quote above rather than assuming a provincial cap.

A nanny is often an employee

Calling someone “self-employed” does not decide their status. CRA guidance says a household hiring a caregiver, babysitter or domestic worker may be the employer, depending on the working relationship.

Where the nanny is an employee, household-employer responsibilities can include a payroll account, income-tax deductions, CPP contributions, EI premiums, remittances, records and a year-end T4. The optional allowance in this calculator is only a budget line—not a payroll calculation.

Consider a nanny share

Two families may arrange for one nanny to care for both families’ children, sharing wages and some related costs. It can narrow the gap with daycare while keeping more home-based flexibility.

Put the schedule, host home, sick-day rules, transportation, privacy and each family’s payroll obligations in writing. Each family should get advice on whether it is an employer and how wages and remittances must be handled.

Looking for a local provider or payroll service?

Directory and referral options are not active yet. No details are collected on this page.

Frequently asked questions

Straight answers for a planning estimate—not individualized tax, legal or employment advice.

Does every Ontario daycare charge $10 a day?

No. The Canada-wide plan is an average-fee goal, not a universal sticker price for every family. The provider must be licensed and enrolled in CWELCC, the child must be eligible, and actual parent fees vary. Use the net quote from your provider.

Why does the calculator not apply a preset daycare rate?

Because age group, region, provider type, CWELCC participation and provider-specific fees all matter. A preset rate could be materially wrong. This calculator multiplies the quote you enter by your schedule and number of children.

Do I have to put a nanny on payroll?

Possibly. CRA says a person who hires a caregiver, babysitter or domestic worker may be the employer. Status depends on the actual relationship, not the label in a contract. If the nanny is your employee, payroll deductions, employer contributions, remittances and T4 reporting can apply.

What should I enter as the employer-cost allowance?

Enter a percentage based on your own payroll calculation or professional advice. It can represent employer CPP/EI, vacation pay and other costs you want to include. Rates and thresholds change, and exact payroll depends on earnings and circumstances, so this calculator does not guess a percentage.

How does the calculator treat more than one child?

Daycare cost is multiplied by the number of children because fees are normally quoted per child. Nanny wages are not multiplied, since the hourly wage you enter is assumed to cover the agreed care arrangement. Confirm whether your nanny charges a higher rate for additional children.

Can a nanny share reduce the cost?

It can. Families may share one nanny’s time and split agreed costs. The arrangement needs clear employment, payroll, schedule, location and sick-day terms. Enter only your family’s expected share of the hourly wage and costs.

Official sources

  • Ontario — Canada-Ontario early learning and child care agreementCWELCC participation, eligibility, fee reductions and current provincial plan context. Read the Ontario plan
  • Ontario — Early Years and Child Care Annual Report 2024Provincial reporting on affordability and CWELCC-enrolled programs. Read the annual report
  • CRA — Payments to caregivers, babysitters and domestic workersCurrent guidance on worker status, payroll deductions and T4 reporting for household employees. Read the caregiver guidance
  • CRA — Employer’s Guide: Payroll Deductions and RemittancesCurrent employer guidance on payroll accounts, deductions, remittances and information returns. Read the employer guide
  • Child Care Aware of America — Child Care in America: 2025 Price & SupplyPublished US child care price and supply findings, including the 2025 national average annual price. Read the 2025 findings
  • US Bureau of Labor Statistics — Childcare WorkersNational occupational data covering childcare workers in centers, private households and other settings, including 2025 median pay. Read the BLS profile
  • IRS — Publication 926, Household Employer’s Tax GuideFederal guidance on household-employee status, employment taxes, records and reporting. Read Publication 926
  • IRS — Schedule H (Form 1040)Official overview of when household employment taxes are reported on Schedule H. Read the Schedule H overview