Clinical Reference Systems: Pediatric Advisor 10.0
Worksheet: Relative Cost of Parent of Newborn Staying at
Home Versus Going to Work
Many couples are surprised to find that once all the costs
are counted, they are not much better off financially if
both parents return to work. This may or may not be true in
your case: the only way to know is to sit down and do the
calculation.
A simple process that will give you a rough estimate is as
follows:
Start with the income earned by the second parent if she
or he returns to work.
Subtract:
 Taxes (income tax, social security). Be sure to
calculate proper tax rate: additional income puts
you in a higher tax bracket, which means that you
will pay more taxes.
 Cost of child care.
 Cost of clothes required for work.
 Cost of commuting.
 Cost of lunches at work.
 Cost of convenience foods, eating at restaurants,
etc. because there is little time to cook at home.
 Cost of additional help (housecleaning, etc.) that
may be required.
Equals: Net gain from additional person working.
EXAMPLE: If a couple earns $24,000 with one person working,
and the second person goes to work parttime for $7,000:
$7,000 Income
Minus 
$1,485 Tax
$2,400 Child Care (1/2 day @ $10/day, 240 days/yr)
$ 350 Clothes
$ 960 Commuting @ $1.40/day (20 miles/day @
$.20/mile, 240 days/yr)
$ 600 Lunches ($2.50/day, 240 days/yr)
$ 300 Convenience Foods/Eating Out
$ 300 Additional Help

$6,395
$ 605 Net Financial Gain of Going to Work
