Is a Daycare / Childcare Center Profitable? (2026 Calculator by City)
Daycare / Childcare Center profitability estimates for 11 major US cities — interactive calculator shows monthly profit, net margin, and break-even timeline adjusted for local cost of living.
The average daycare / childcare center generates $48,000/month nationally, with a net margin of approximately 19% after cost of goods, labor, and overhead. Profitability varies significantly by city — select a market below for a city-adjusted estimate with an interactive calculator.
Select Your City
Daycare / Childcare Center Profitability: Key Questions
How much does a daycare make per year?
A licensed childcare center with 30–50 enrolled children generates $300,000–$1,000,000 in annual revenue. After labor (55%), food costs (6%), and overhead (20%), net margins run 10–20%. Small home daycares (6–8 children) generate $60,000–$120,000/year with much lower overhead.
Is a daycare profitable?
Yes, when enrollment stays above 80% of licensed capacity. Daycares are labor-intensive — staff wages typically consume 50–60% of revenue to meet state-required child-to-staff ratios. The most profitable centers maintain full enrollment, negotiate favorable lease terms, and participate in state subsidy programs like CCAP.
What is the profit margin for a daycare center?
Net profit margins for daycare centers average 10–20% at full enrollment. Labor (55% of revenue) is the dominant cost and is largely fixed by state licensing ratios. Centers that own their building reduce occupancy costs significantly and often achieve 20–30% margins.
How many children do I need to break even?
A childcare center with $15,000/month in fixed costs needs roughly 15–20 enrolled children at $1,000–$1,200/month tuition to cover fixed costs. At typical tuition of $1,500–$2,000/month, 20–25 enrolled children usually covers break-even. Most states cap small centers at 30–50 children — model full capacity first.
Was this calculator helpful?
Your feedback helps us improve CostCrunch
Thank you for your feedback! ✓
Save Your Results
Download a professional PDF report with your complete analysis, charts, and key insights.
Download Your Report
Enter your email to get your personalized PDF report. We'll also send you useful financial tips.
No spam. Unsubscribe anytime.
More Business Calculators
Break-Even Calculator
Find how many units to sell to cover costs
Employee Cost Calculator
Find the true cost of hiring an employee
Startup Cost Estimator
Estimate one-time and recurring startup costs
Profit Margin Calculator
Calculate gross, operating, and net margins
Self-Employment Tax Calculator
Estimate SE tax and quarterly payments for freelancers
Loan Comparison
Compare loan options side by side
Markup & Margin
Convert between markup and margin percentages
Payroll Tax Calculator
Estimate employer payroll taxes by state
Get notified when tax rates change
We monitor payroll tax rates, SUTA, and cost-of-living data across all 50 states. When rates change, we'll let you know. Free, no spam.
We respect your privacy. Unsubscribe with one click.