Nursing Home vs Home Care Cost Comparison

Estimate and compare costs for two common elder‑care paths: moving into a nursing home versus staying at home with paid caregivers. The calculator includes inflation and produces a year‑by‑year table you can download as CSV.

Choosing Care Is Emotional, but Costs Still Matter

When an older parent, partner, or other loved one begins to need daily assistance, families face one of the most difficult decisions of adult life: should they move into a nursing home or receive care at home? The choice is emotional and deeply personal. It depends on medical needs, family availability, the person’s preferences, housing suitability, and cultural expectations. Yet even when the heart is leading the conversation, the budget eventually enters the room. Nursing homes and in‑home care can each cost thousands of dollars per month. If the need lasts for years—as it often does—small monthly differences can translate into life‑changing financial outcomes.

This calculator does not tell you what you “should” do. Instead, it gives a structured way to compare the likely financial paths under your assumptions. By estimating monthly and lifetime totals, and by showing how inflation compounds over time, you can bring clarity to planning discussions with family members, care managers, or financial advisors.

Understanding the Two Care Models

Nursing home care typically provides 24/7 supervision, on‑site nursing staff, meals, medication management, and help with activities of daily living such as bathing, dressing, and mobility. Costs are usually quoted as a monthly rate and vary by room type (semi‑private vs private), location, and level of medical complexity.

In‑home care keeps the person in their own residence. Paid caregivers may provide help for a set number of hours per week or per day. Some families combine paid care with unpaid care from relatives or friends. Staying at home can also require extra spending on safety upgrades, transportation, home health supplies, or respite services.

Neither model is universally cheaper. If someone needs limited assistance, a few hours of home care can cost far less than full‑time facility care. But if they require round‑the‑clock supervision, paying for enough in‑home hours can exceed nursing home costs. The break‑even point depends on your hourly rate, required hours, and any extra home expenses.

The Core Cost Formulas

The calculator uses a monthly view because most people receive quotes in monthly terms. First, we estimate monthly in‑home cost from an hourly rate and weekly hours:

The factor 52/12 converts weekly spending into an average month. Nursing home monthly cost is entered directly. To project multi‑year totals, we apply an annual inflation rate to both paths. If inflation is i per year and the base annual cost in year 1 is C, then cost in year t is:

Worked Example

Suppose your local nursing home quotes $9,200 per month. In‑home care agencies in your area charge $32 per hour. You estimate 25 hours of paid help per week, and about $250 per month in additional home costs (medical supplies, transportation, and a short‑term safety upgrade loan). You expect care will be needed for 4 years, and you want to model 3% annual cost inflation.

Step 1: home care monthly cost. Weekly cost is $32 × 25 = $800. Converting to monthly gives $800 × (52/12) ≈ $3,467. Add $250 extras for a total of about $3,717 per month.

Step 2: annualize. Home care year‑1 annual cost is $3,717 × 12 ≈ $44,604. Nursing home year‑1 annual cost is $9,200 × 12 = $110,400.

Step 3: apply inflation. In year 2, multiply each annual cost by 1.03; by year 4, multiply by 1.03³. Summing across four years yields roughly $187k in home care costs versus $463k in nursing home costs.

In this example, in‑home care is significantly cheaper under the assumptions. But if the required hours rose toward full‑time, the picture could change quickly. That is why the break‑even calculation below is helpful.

Break‑Even Hours: When Does Home Care Cost the Same?

Because the main driver of home care cost is paid hours, you can solve for the weekly hours that make the two options equal. Rearranging the monthly cost formula gives:

Break‑even hours/week = (nursing home monthly cost − extra monthly home costs) ÷ (hourly rate × 52/12).

If your estimated paid hours are far below this level, staying at home is usually cheaper. If they are far above it, a facility may be financially comparable or less expensive.

Typical Cost Components to Consider

Families sometimes underestimate what belongs in each bucket. Nursing home prices may include meals and utilities that you are already paying for at home. In‑home costs may include periodic services rather than just a caregiver wage. Use the categories below to sanity‑check your inputs.

Limitations and Assumptions

This calculator is a planning tool, not a medical or legal recommendation. It assumes:

• The hourly rate and nursing home monthly rate remain comparable over time and grow with the same inflation rate.
• Paid caregiver hours stay constant each year; in reality, needs often increase.
• Extra home costs are averaged as a steady monthly amount, even though upgrades may be one‑time and care equipment may be episodic.
• The estimate does not include Medicaid eligibility rules, long‑term care insurance reimbursements, or tax credits, which can change net out‑of‑pocket cost.

For more precise decisions, consider running multiple scenarios: a “best case” where needs remain stable, a “moderate increase” scenario where hours rise each year, and a “high‑care” scenario where full‑time or live‑in support becomes necessary. The numbers here are a starting point for those conversations.