How Much Does It Cost to Start a Running A Daycare? (2026)
Startup runs $69,500 to $317,800 one time, plus $4,650 to $17,400 a month in listed costs. Running a daycare is a real, demand-backed business — chronic US childcare shortages mean most licensed centers have waitlists — but it is a structurally…
This is the national picture. Run it for your city and your version.
Research my version$69.5Kto $317.8K
National range
Listed monthly costs$4.7Kto $17.4K / mo
May not include every expense
6-month runway$97.4Kto $422.2K
Startup plus six months of costs
Net margin8-15%
Typical, once open
National figures. Tap one to research it for your city and your version.
Published estimates, not a quote for your location. Listed monthly costs may not include every operating expense.
Itemized cost breakdown
12 line items, one time and monthly.
| Item | One-time | Monthly |
|---|---|---|
| State childcare license application, inspections & fingerprint/background checks | $500 to $2,500 | None |
| Facility lease deposit & childcare-code buildout (fire suppression, bathroom fixtures, egress, fencing) | $20,000 to $120,000 | $2,500 to $9,000 |
| Classroom furniture, cribs, cots & age-appropriate learning materials | $8,000 to $30,000 | None |
| Playground equipment & safety surfacing (CPSC-compliant) | $5,000 to $35,000 | None |
| Commercial general liability + child abuse/molestation liability insurance | $500 to $1,500 | $300 to $1,200 |
| Childcare management software (Brightwheel, Procare) & parent billing | $200 to $800 | $100 to $400 |
| Staff hiring costs: background checks, CPR/first-aid certification, pre-opening payroll during licensing | $4,000 to $15,000 | None |
| Kitchen equipment & food program setup (CACFP-compliant meals/snacks) | $3,000 to $12,000 | $800 to $3,500 |
| Cleaning supplies, diapers, consumables & janitorial service | $1,500 to $4,000 | $600 to $2,000 |
| Launch marketing: signage, Google Business Profile, local ads, open-house events | $1,500 to $6,000 | $200 to $800 |
| Payroll & accounting/bookkeeping setup (Gusto, QuickBooks) | $300 to $1,000 | $150 to $500 |
| Working capital reserve covering 3-6 months of payroll & rent before enrollment ramps | $25,000 to $90,000 | None |
These are category ranges. A report runs the numbers for your version.
Your city, your format and your pricing change every line above. A report checks demand, competitor pricing, revenue models and break-even for the business you would actually open.
6-month runway
Startup cost plus six months of burn: a rough floor for how much cash to have in hand before you open, since most businesses are not profitable from day one.
$97,400 to $422,200
Check the breakdown before using this figure: if upfront costs already include a working-capital reserve, this formula counts additional runway on top of it. Listed monthly costs may be incomplete.
How to lower these costs
Facility lease deposit & childcare-code buildout (fire suppression, bathroom fixtures, egress, fencing)
Facility lease deposit & childcare-code buildout (fire suppression, bathroom fixtures, egress, fencing) is one of the largest one-time costs ($20,000 to $120,000). Look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
Working capital reserve covering 3-6 months of payroll & rent before enrollment ramps
Working capital reserve covering 3-6 months of payroll & rent before enrollment ramps is one of the largest one-time costs ($25,000 to $90,000). Look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
Facility lease deposit & childcare-code buildout (fire suppression, bathroom fixtures, egress, fencing), monthly
Facility lease deposit & childcare-code buildout (fire suppression, bathroom fixtures, egress, fencing) runs $2,500 to $9,000/month. Negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
Kitchen equipment & food program setup (CACFP-compliant meals/snacks), monthly
Kitchen equipment & food program setup (CACFP-compliant meals/snacks) runs $800 to $3,500/month. Negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
Next steps
Edit line items for your exact plan with the free startup cost calculator.
See margins, demand and competition for a running a daycare.
Frequently asked questions
How much does it cost to start a daycare business?
Starting a licensed US daycare center typically costs $75,000-$250,000 all-in: $20,000-$120,000 for lease deposit and code-compliant buildout, $8,000-$30,000 for furniture and classroom materials, $5,000-$35,000 for playground equipment, plus $25,000-$90,000 in working capital to cover payroll before enrollment ramps. A licensed home daycare is far cheaper at roughly $5,000-$15,000.
What is the cheapest way to start a daycare?
The cheapest legal entry is a licensed family home daycare: $5,000-$15,000 covers licensing, background checks, safety modifications, insurance, and supplies, and your home eliminates the lease cost that dominates center economics. The trade-off is capacity — most states cap home daycares at 6-12 children, which limits gross revenue to roughly $60,000-$140,000 per year.
Can you get an SBA loan to open a daycare?
Yes — childcare centers are eligible for SBA 7(a) loans, and lenders view licensed childcare favorably because demand is documented and recession-resistant. Expect to contribute 10-20% equity, show 6+ months of working capital in projections, and note that lenders will scrutinize your childcare experience; first-time operators without a director's background face tougher approvals.
What are the biggest ongoing monthly costs of running a daycare?
Payroll dominates at 50-65% of revenue — a 50-child center commonly runs $25,000-$45,000 per month in wages and taxes. After that: rent or mortgage ($2,500-$9,000), food program costs ($800-$3,500), liability insurance including abuse coverage ($300-$1,200), and consumables like diapers and cleaning supplies ($600-$2,000).
What hidden costs do new daycare owners miss?
The most-missed costs are pre-opening payroll (staff must be hired and trained while licensing drags on for months with zero revenue), deferred maintenance and annual re-inspection compliance items, workers' compensation premiums that scale with every hire, and the revenue gap from state subsidy families whose CCDF voucher rates run 10-25% below private tuition and pay 30-60 days in arrears.
National Census establishment data was not available for this category. Cost and margin figures are informed estimates drawn from public industry sources (trade associations, government labor/business statistics, industry reports) combined with real Google Ads search-demand data. They are directional, not audited — actual costs and margins vary by market and operator. Updated November 2026. Read our methodology
Updated November 10, 2026 · Sources: IBISWorld Industry Report 62441 — Child Day Care Services in the US, U.S. Bureau of Labor Statistics — Occupational Outlook Handbook, Childcare Workers (occupation 39-9011) wage and employment data, Child Care Aware of America — state licensing requirement databases and annual 'Price of Care' reports, U.S. Administration for Children and Families (ACF) — CCDF subsidy program data and childcare market rate surveys, National Association for the Education of Young Children (NAEYC) — accreditation standards and operating benchmarks, State-level childcare licensing agency fee schedules and ratio regulations (e.g., state Department of Health & Human Services childcare licensing divisions)
Related: Is a running a daycare profitable?
Check your version before you spend on it.
One line is enough. The report comes to your inbox.
Research my version50+ sources · report in your inbox
Start