Is a Daycare Profitable in Los Angeles, CA? (2026 Estimator)
Revenue and cost estimates for a daycare / childcare center in Los Angeles, CA, adjusted for local cost of living. Interactive calculator — adjust your numbers to see monthly profit and break-even timeline.
Based on 2026 estimates adjusted for Los Angeles's cost of living (152.0% of national average), a typical daycare / childcare center in Los Angeles generates $72,960/month in revenue and nets approximately $13,862/month (19.0% margin) — covering its $77,520 startup investment in roughly 8 months. Use the calculator below to adjust for your specific operation.
Your Numbers
Defaults are Los Angeles-adjusted medians. Adjust to match your operation.
Los Angeles range: $38,000–$136,800
Monthly Profitability
Break-Even Timeline
Time to recover $77,520 startup investment at current monthly profit. Los Angeles benchmark: 18–48 months.
Revenue Allocation
Daycare / Childcare Center Revenue in Los Angeles, CA (#{yr})
Revenue estimates are adjusted from national medians using Los Angeles's cost-of-living index of 152.0 (national average = 100). Higher COL markets have higher customer spending power and local pricing — which flows into revenue estimates.
What drives revenue for a daycare / childcare center in Los Angeles:
- Licensed capacity and enrollment fill rate
- Monthly tuition rate relative to local market
- State subsidy reimbursement programs (CCAP, Head Start)
- Staff-to-child ratios required by state license
Daycare / Childcare Center Startup Cost in Los Angeles
Starting a daycare / childcare center in Los Angeles requires approximately $77,520 upfront plus $10,032/month in ongoing costs (adjusted for local cost of living index 152.0). The profitability calculator above uses these figures to compute your break-even timeline.
What Actually Drives Profitability
Daycares typically operate at 70–85% capacity fill before breaking even. State subsidy contracts (CCAP, Title XX) provide stable revenue but reimburse below private-pay rates. Centers that maintain 90%+ enrollment and control staffing ratios can net 10–20% margins.
Daycare / Childcare Center Profitability: Other Markets
Daycare / Childcare Center Profitability: Frequently Asked 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.