Tax-Free Childcare Calculator
Calculate the deposit needed for eligible childcare bills after the government top-up. Use costs within one three-month entitlement period.
Rule year: 2026/27 · GBP · Sources checked
Government top-up for this three-month period
Tax-Free Childcare account, parent earnings/adjusted-net-income conditions, child age/disability status and approved provider eligibility already established. Equal cost per child within each group; one three-month period. No Universal Credit/voucher compatibility assessment, unused-cap transfer or annual entitlement guarantee.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
Tax-Free Childcare adds £2 for every £8 deposited, equivalent to 20% of a covered bill before caps. The three-month top-up cap is £500 per standard eligible child and £1,000 per eligible disabled child. This tool applies the cap separately to each child, assuming equal entered costs within each group, then subtracts the top-up from the total bill. When bills exceed the cap-supported amount, the parent funds the remaining cost. The period is an entitlement period, not necessarily a calendar quarter.
Formula and rules
Top-up per child = min(20% × eligible period bill, £500 or £1,000 cap). Parent deposit for entered bills = total eligible bills − combined capped top-ups.
Assumptions and limitations
Tax-Free Childcare account, parent earnings/adjusted-net-income conditions, child age/disability status and approved provider eligibility already established. Equal cost per child within each group; one three-month period. No Universal Credit/voucher compatibility assessment, unused-cap transfer or annual entitlement guarantee.
Worked example
A £3,000 eligible bill for one standard-cap child would imply £600 before the cap. The top-up is capped at £500, so the required parent deposit for that bill is £2,500.
- Government top-up for this three-month period
- £500.00
- Your deposit needed for entered childcare bills
- £2,500.00
- Total eligible bills in the period
- £3,000.00
- Standard-child top-up cap across entered children
- £500.00
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: Tax-Free Childcare ↗
£2 top-up per £8 deposited; per-child three-month caps £500 or £1,000 for eligible disabled children.
- HMRC: adjusted net income ↗
Taxable income less established deductions, including grossed-up relief-at-source pensions and Gift Aid.
Common questions
Is the top-up 25% of the childcare bill?
No. It is 25% of your deposit, which equals 20% of the covered bill before caps.
Can unused allowance be shared between children?
This tool applies each child’s cap separately and does not transfer unused top-up capacity to another child.
Does the calculator confirm scheme eligibility?
No. Earnings, income, age, approved-provider and benefit-compatibility conditions must be checked on GOV.UK.