Is a Daycare Profitable in Phoenix, AZ? (2026 Estimator)
Revenue and cost estimates for a daycare / childcare center in Phoenix, AZ, 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 Phoenix's cost of living (100.0% of national average), a typical daycare / childcare center in Phoenix generates $48,000/month in revenue and nets approximately $9,120/month (19.0% margin) — covering its $51,000 startup investment in roughly 8 months. Use the calculator below to adjust for your specific operation.
Your Numbers
Defaults are Phoenix-adjusted medians. Adjust to match your operation.
Phoenix range: $25,000–$90,000
Monthly Profitability
Break-Even Timeline
Time to recover $51,000 startup investment at current monthly profit. Phoenix benchmark: 18–48 months.
Revenue Allocation
Daycare / Childcare Center Revenue in Phoenix, AZ (#{yr})
Revenue estimates are adjusted from national medians using Phoenix's cost-of-living index of 100.0 (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 Phoenix:
- 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 Phoenix
Starting a daycare / childcare center in Phoenix requires approximately $51,000 upfront plus $6,600/month in ongoing costs (adjusted for local cost of living index 100.0). 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.
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