Nursery EYFS Ratios & P&L Calculator 2025/26
Model your nursery profit and loss with EYFS-compliant staff ratios, funded hours mix and room occupancy. Enter baby, toddler and pre-school room capacity, your LA funding rate and private rate to see revenue, staffing cost and gross margin at different occupancy levels.
Key Inputs
- Baby room capacity (0–2 years, ratio 1:3)
- Toddler room capacity (2–3 years, ratio 1:4 or 1:5 if Level 3+ led)
- Pre-school room capacity (3–5 years, ratio 1:8 or 1:13 with QTS-led session)
- Occupancy percentage per room
- Funded hours mix: proportion of children on 15h or 30h universal entitlement
- Local authority funded rate per hour (typically £5.60–£7.50 for 3–4 year olds in 2025/26)
- Private rate per hour
- Average staff hourly cost (salary + employer NI + pension)
What You'll Get
- Maximum weekly revenue at full occupancy (funded + private mix)
- Weekly staffing cost based on EYFS ratios and room configuration
- Gross margin (revenue minus direct staffing cost)
- Break-even occupancy percentage at current rates
- Revenue shortfall between LA funding rate and true cost per funded hour
Important Notes — 2025/26 Rates & Caveats
EYFS staff-to-child ratios: 0–2 years — 1:3; 2–3 years — 1:4 (or 1:5 if at least one staff member holds a full Level 3 Early Years qualification); 3–5 years — 1:8 (or 1:13 if a qualified teacher or Early Years Professional leads the session). The 30 hours free childcare entitlement was extended in phases from April 2024 — from September 2024, working parents of children aged 9 months and over qualify for 15 hours free, with 30 hours for those aged 3–4. LA funding rates for 2025/26 are typically £5.60–£7.50/hour for 3–4 year olds, but many providers find this does not cover the true cost of provision including overheads. Many nurseries charge top-up fees for meals and consumables on funded sessions.
Frequently Asked Questions
What are the EYFS staff-to-child ratios?
0–2 years: 1:3 (one adult for every three babies); 2–3 years: 1:4, or 1:5 if at least one member of staff holds a full and relevant Level 3 qualification; 3–5 years: 1:8, or 1:13 if a qualified teacher, Early Years Professional or Early Years Teacher leads the session for the majority of the time children aged 3 and over are present. These are statutory minimums — many nurseries operate at tighter ratios for quality reasons.
Are nurseries allowed to charge top-up fees on funded hours?
Yes — nurseries can charge for meals, consumables and voluntary extras (such as trips and additional activities) on funded sessions. However, they cannot charge for the hours of funded childcare itself — charging a compulsory top-up rate per hour above the LA rate is prohibited. The funded entitlement must be accessible without additional compulsory charges. Ofsted and the local authority may investigate nurseries found to be charging improperly on funded hours.
How has the 30 hours free childcare expansion changed nursery economics?
From September 2024, the 30 hours free childcare entitlement was extended to working parents of children from the age of 9 months (in phases from April 2024). This significantly increases the volume of funded hours but at LA rates that often fall short of the true cost of provision. Many nurseries are cross-subsidising funded places with private-rate income. The DfE has committed to increasing funding rates annually, but the sector reports a persistent gap between LA rates and actual costs.
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