Where the money goes in year one
For most families the biggest cost of a baby is not the gear but childcare and time off work. Full-time daycare for an infant can cost from several hundred to more than $2,000 a month depending on where you live, while diapers, wipes, formula and clothes add a steadier few hundred dollars a month. Gear like a crib, car seat and stroller is a one-time cost, and it can be cut sharply with hand-me-downs and second-hand finds, except for car seats, which are best bought new.
The calculator separates up-front costs, which arrive around the birth, from monthly running costs. Saving the up-front portion before the due date means the birth itself does not land on a credit card.
Plan for the leave gap
Paid parental leave varies widely by employer and, in the US, by state. If part of your leave is unpaid, the lost income is a real cost of the first year and belongs in the budget. It is also a good moment to check health insurance out-of-pocket maximums, add the baby to your plan within the enrollment window, and revisit life insurance and your emergency fund now that more people depend on your income.
Common questions
How much does a baby cost in the first year?
It varies widely. Without childcare it might be a few thousand dollars; with full-time daycare it can be $15,000 to $25,000 or more in high-cost areas.
How much should I save before having a baby?
Enough to cover up-front costs (gear, out-of-pocket birth costs and any unpaid leave) plus a healthy emergency fund.
What baby items should be bought new?
Car seats, because their history matters for safety, and crib mattresses. Most other items are fine second-hand.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.