Daycare Startup Costs
2026 startup cost estimates for a daycare across 50 cities — $108,066 to $243,474 in year one, adjusted for local cost of living.
Opening a daycare costs between $108,066 (Oklahoma City) and $243,474 (New York) in the first year (2026), depending on location. The national average is $130,200 — all estimates below are adjusted for each city's cost of living. Upfront costs average $56,559, with $7,319/month in ongoing expenses.
National Average — Year 1
$130,200
Baseline (COL index 100)
Avg Upfront Costs
$56,559
One-time to open
Avg Monthly Costs
$7,319/mo
Recurring expenses
Daycare Startup Costs by City
First-year cost estimates, sorted lowest to highest — adjusted for each city's cost of living
| City | COL Index | Upfront | Monthly | Year 1 | |
|---|---|---|---|---|---|
| Oklahoma City OK | 83.0 | $42,330 | $5,478/mo | $108,066 | Full breakdown → |
| Memphis TN | 86.0 | $43,860 | $5,676/mo | $111,972 | Full breakdown → |
| Cleveland OH | 89.0 | $45,390 | $5,874/mo | $115,878 | Full breakdown → |
| Detroit MI | 89.0 | $45,390 | $5,874/mo | $115,878 | Full breakdown → |
| St. Louis MO | 90.0 | $45,900 | $5,940/mo | $117,180 | Full breakdown → |
| Omaha NE | 91.0 | $46,410 | $6,006/mo | $118,482 | Full breakdown → |
| Louisville KY | 91.0 | $46,410 | $6,006/mo | $118,482 | Full breakdown → |
| San Antonio TX | 91.0 | $46,410 | $6,006/mo | $118,482 | Full breakdown → |
| Indianapolis IN | 92.0 | $46,920 | $6,072/mo | $119,784 | Full breakdown → |
| Tucson AZ | 93.0 | $47,430 | $6,138/mo | $121,086 | Full breakdown → |
| Cincinnati OH | 93.0 | $47,430 | $6,138/mo | $121,086 | Full breakdown → |
| Milwaukee WI | 93.0 | $47,430 | $6,138/mo | $121,086 | Full breakdown → |
| Houston TX | 93.0 | $47,430 | $6,138/mo | $121,086 | Full breakdown → |
| Kansas City MO | 94.0 | $47,940 | $6,204/mo | $122,388 | Full breakdown → |
| Minneapolis MN | 95.0 | $48,450 | $6,270/mo | $123,690 | Full breakdown → |
| Columbus OH | 95.0 | $48,450 | $6,270/mo | $123,690 | Full breakdown → |
| Jacksonville FL | 96.0 | $48,960 | $6,336/mo | $124,992 | Full breakdown → |
| Pittsburgh PA | 97.0 | $49,470 | $6,402/mo | $126,294 | Full breakdown → |
| Fort Worth TX | 97.0 | $49,470 | $6,402/mo | $126,294 | Full breakdown → |
| Mesa AZ | 98.0 | $49,980 | $6,468/mo | $127,596 | Full breakdown → |
| Charlotte NC | 98.0 | $49,980 | $6,468/mo | $127,596 | Full breakdown → |
| New Orleans LA | 99.0 | $50,490 | $6,534/mo | $128,898 | Full breakdown → |
| Orlando FL | 99.0 | $50,490 | $6,534/mo | $128,898 | Full breakdown → |
| Richmond VA | 99.0 | $50,490 | $6,534/mo | $128,898 | Full breakdown → |
| Raleigh NC | 100.0 | $51,000 | $6,600/mo | $130,200 | Full breakdown → |
| Phoenix AZ | 100.0 | $51,000 | $6,600/mo | $130,200 | Full breakdown → |
| Dallas TX | 101.0 | $51,510 | $6,666/mo | $131,502 | Full breakdown → |
| Tampa FL | 101.0 | $51,510 | $6,666/mo | $131,502 | Full breakdown → |
| Virginia Beach VA | 101.0 | $51,510 | $6,666/mo | $131,502 | Full breakdown → |
| Las Vegas NV | 103.0 | $52,530 | $6,798/mo | $134,106 | Full breakdown → |
| Nashville TN | 103.0 | $52,530 | $6,798/mo | $134,106 | Full breakdown → |
| Philadelphia PA | 103.0 | $52,530 | $6,798/mo | $134,106 | Full breakdown → |
| Austin TX | 103.0 | $52,530 | $6,798/mo | $134,106 | Full breakdown → |
| Atlanta GA | 105.0 | $53,550 | $6,930/mo | $136,710 | Full breakdown → |
| Chicago IL | 107.0 | $54,570 | $7,062/mo | $139,314 | Full breakdown → |
| Baltimore MD | 108.0 | $55,080 | $7,128/mo | $140,616 | Full breakdown → |
| Denver CO | 112.0 | $57,120 | $7,392/mo | $145,824 | Full breakdown → |
| Portland OR | 113.0 | $57,630 | $7,458/mo | $147,126 | Full breakdown → |
| Sacramento CA | 118.0 | $60,180 | $7,788/mo | $153,636 | Full breakdown → |
| Miami FL | 123.0 | $62,730 | $8,118/mo | $160,146 | Full breakdown → |
| San Diego CA | 146.0 | $74,460 | $9,636/mo | $190,092 | Full breakdown → |
| Seattle WA | 149.0 | $75,990 | $9,834/mo | $193,998 | Full breakdown → |
| Washington DC | 152.0 | $77,520 | $10,032/mo | $197,904 | Full breakdown → |
| Boston MA | 152.0 | $77,520 | $10,032/mo | $197,904 | Full breakdown → |
| Los Angeles CA | 152.0 | $77,520 | $10,032/mo | $197,904 | Full breakdown → |
| Long Beach CA | 155.0 | $79,050 | $10,230/mo | $201,810 | Full breakdown → |
| Oakland CA | 161.0 | $82,110 | $10,626/mo | $209,622 | Full breakdown → |
| San Jose CA | 170.0 | $86,700 | $11,220/mo | $221,340 | Full breakdown → |
| San Francisco CA | 179.0 | $91,290 | $11,814/mo | $233,058 | Full breakdown → |
| New York NY | 187.0 | $95,370 | $12,342/mo | $243,474 | Full breakdown → |
| National Average | $56,559 | $7,319/mo | $130,200 | ||
Browse Daycare Costs by City
Oklahoma City
$108,066/yr
Memphis
$111,972/yr
Cleveland
$115,878/yr
Detroit
$115,878/yr
St. Louis
$117,180/yr
Omaha
$118,482/yr
Louisville
$118,482/yr
San Antonio
$118,482/yr
Indianapolis
$119,784/yr
Tucson
$121,086/yr
Cincinnati
$121,086/yr
Milwaukee
$121,086/yr
Houston
$121,086/yr
Kansas City
$122,388/yr
Minneapolis
$123,690/yr
Columbus
$123,690/yr
Jacksonville
$124,992/yr
Pittsburgh
$126,294/yr
Fort Worth
$126,294/yr
Mesa
$127,596/yr
Charlotte
$127,596/yr
New Orleans
$128,898/yr
Orlando
$128,898/yr
Richmond
$128,898/yr
Raleigh
$130,200/yr
Phoenix
$130,200/yr
Dallas
$131,502/yr
Tampa
$131,502/yr
Virginia Beach
$131,502/yr
Las Vegas
$134,106/yr
Nashville
$134,106/yr
Philadelphia
$134,106/yr
Austin
$134,106/yr
Atlanta
$136,710/yr
Chicago
$139,314/yr
Baltimore
$140,616/yr
Denver
$145,824/yr
Portland
$147,126/yr
Sacramento
$153,636/yr
Miami
$160,146/yr
San Diego
$190,092/yr
Seattle
$193,998/yr
Washington
$197,904/yr
Boston
$197,904/yr
Los Angeles
$197,904/yr
Long Beach
$201,810/yr
Oakland
$209,622/yr
San Jose
$221,340/yr
San Francisco
$233,058/yr
New York
$243,474/yr
What You Need to Open a Daycare
Opening a daycare or childcare center has unusually high regulatory requirements that drive significant upfront costs. Licensing, facility build-out, staff background checks, and required staff-to-child ratios create barriers to entry — but also reduce competition once you're established. State childcare licensing is the critical path item: it can take 3–6 months and determines your legal capacity.
Required licenses and certifications:
- State childcare facility license
- Local zoning and building permits (for commercial facility)
- Fire safety inspection and certificate of occupancy
- Background checks for all staff (state childcare requirement)
- CPR and first aid certification for staff
- State-required staff-to-child ratios (varies by age group)
- Liability insurance (typically $1M+ coverage required)
- Food service permit (if serving meals)
Tips for Keeping Costs Down
- State licensing is the critical path — start the application before signing a lease.
- Capacity is legally capped per your license and square footage; model revenue at max capacity first.
- Staff ratios are your biggest ongoing cost driver: 1:4 for infants, 1:10 for preschool (varies by state).
- Home-based daycare has lower upfront costs ($10K–$40K) but lower capacity and income ceiling.
- Tuition assistance programs (CCAP, Head Start subsidies) can stabilize enrollment in low-income markets.
Frequently Asked Questions
How much does it cost to open a home daycare vs. a commercial daycare center?
A home-based daycare typically costs $10,000–$40,000 to start (renovations, safety equipment, licensing), with state-capped capacity of 6–8 children. A commercial childcare center costs $80,000–$300,000+ due to facility build-out, higher-capacity licensing, and minimum staffing requirements.
How long does daycare licensing take?
State childcare licensing typically takes 3–6 months, including application review, background checks for all staff, fire safety inspection, and a facility site visit. Some states have longer processing backlogs. Start the licensing process before signing a commercial lease — it is the critical path to opening.
What staff-to-child ratios are required for daycare?
Staff-to-child ratios vary by age group and state. Common minimums: 1:4 for infants (under 18 months), 1:6 for toddlers, 1:10 for preschool-age children. These ratios are your largest ongoing cost driver — model staffing costs at your maximum licensed capacity before committing to a lease.
What is the average revenue for a daycare center?
A licensed childcare center with 50–100 children can generate $200,000–$600,000 in annual tuition revenue at full capacity, with net margins of 10–20% after staff, rent, and food costs. Profitability depends heavily on state subsidy reimbursement rates and your ability to maintain enrollment near licensed capacity.
Ready to plan your daycare?
Step-by-step guide: licensing, equipment, staffing, and what to budget for the first 12 months.
Model your break-even point
Pre-filled with the national average monthly cost for a daycare ($7,319/mo).
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