How much does it cost to start a daycare?
A clear 2026 breakdown of what it takes to open a licensed daycare — home vs center, every line item, ongoing costs, and how to fund the gap. Planning ranges, not sales fluff.
The real 2026 numbers
Itemized startup cost breakdown
Every category that goes into opening a daycare, with typical ranges for both models.
| Startup expense | Home-based | Center-based |
|---|---|---|
| Licensing & fees | $100–$1,000 | $500–$3,000 |
| Training & certifications | $200–$1,500 | $1,000–$5,000 |
| Space & renovations | $1,000–$10,000 | $20,000–$150,000+ |
| Furniture & equipment | $2,000–$8,000 | $10,000–$40,000 |
| Toys & materials | $1,000–$4,000 | $5,000–$20,000 |
| Staff / payroll buffer | $0–$8,000 | $15,000–$60,000 |
| Insurance (year 1) | $500–$2,500 | $2,000–$8,000 |
| Marketing & website | $300–$3,000 | $2,000–$12,000 |
| 3-month working capital | $5,000–$15,000 | $25,000–$80,000 |
| Typical total | $10,000–$50,000 | $50,000–$250,000+ |
A few of these lines shrink to almost nothing with MyKidReports
See that “Marketing & website” line ($2,000–$12,000 for a center)? With the built-in MyKidReports AI website builder you launch a real daycare site — your own domain, tour & waitlist forms, local SEO, and a blog — for about $10/month, instead of paying an agency thousands. And the billing, contactless check-in, enrollment, parent messaging, staff scheduling, and payroll a new center would otherwise buy as separate subscriptions? All in one platform — free for up to 5 children, then just $0.99 per child / month.
| Website & marketing | $2,000–$12,000 | ≈ $10/month with MyKidReports |
| Childcare software billing, check-in, enrollment, messaging, payroll |
$1,000s / year in separate tools |
Free up to 5 kids, then $0.99/child/mo |
| Staff scheduling & payroll | Hours in spreadsheets | Schedule to ratio + run payroll in-app |
What makes one daycare cost 10x another
Four factors explain most of the difference between a $10,000 home daycare and a $250,000 center.
Keep tuition flowing from day one
MyKidReports automates invoicing, autopay, and online payments — free for up to 5 children.
How to fund your daycare startup
You rarely pay for everything out of pocket. These are the ways new owners cover the gap.
Personal savings
The most common source, and the one lenders and grant programs expect you to contribute alongside other funding.
SBA microloan or small-business loan
The U.S. Small Business Administration backs microloans (up to $50,000) and larger loans well-suited to child care startups. A solid business plan is required.
Business line of credit
Flexible funding to cover the gap between opening and full enrollment, when working capital is tightest.
Child care startup grants (CCDF)
State agencies and federal programs funded through the Child Care and Development Fund offer grants to expand licensed care. Availability changes yearly — check with your state and local child care resource and referral agency.
Child care subsidy (family vouchers)
Becoming a subsidy-approved provider lets you enroll families who pay with state CCDF vouchers (often called CCAP) — you fill seats with tuition backed by the state instead of an empty room. Apply through your state child care agency.
CACFP food reimbursement
The federal Child and Adult Care Food Program pays licensed providers back for the nutritious meals and snacks you already serve — real money returned every month. Enroll through your state's CACFP sponsor.
Daycare startup costs, answered
How much does it cost to start a home daycare?
A home-based daycare typically costs $10,000–$50,000 to start, though a bare-minimum setup can begin near $5,000. The main expenses are licensing and training, safety equipment, toys and materials, insurance, and a few months of working capital before enrollment fills.
How much does it cost to open a daycare center?
A commercial daycare center usually costs $50,000–$250,000 or more, driven mostly by leasing or renovating a space, furniture and playground equipment, and staffing. Larger centers serving 50+ children can exceed $250,000. Build your exact figure in your business plan.
What is the biggest startup cost for a daycare?
Space and renovations are the largest startup cost for a center — often $20,000–$150,000 or more — while staffing is the largest ongoing cost. For a home daycare, safety modifications and working capital are usually the biggest line items.
What are the ongoing monthly costs of running a daycare?
The main ongoing costs are payroll (typically 50–70% of expenses), rent or mortgage, insurance, food, cleaning and supplies, utilities, and software. Payroll dominates because required caregiver-to-child ratios cap how lean you can staff.
Can I start a daycare with no money?
Starting with truly no money is very difficult, but a home daycare can start with little. Owners use SBA microloans, personal or family loans, and state and federal child care startup grants funded through the Child Care and Development Fund (CCDF). You will still need to cover licensing, training, insurance, and safety equipment.
How do I get funding to start a daycare?
Common funding sources are personal savings, an SBA microloan or small-business loan, a business line of credit, and state or federal child care startup grants. Your local child care resource and referral agency lists current grants and often helps you apply.
How much do parents pay for daycare?
Nationally, center-based daycare averages about $300–$320 per week — roughly $15,000–$17,000 a year — and infant care runs higher, around $343 per week. Prices vary widely by state and city, so set your tuition from your real costs and check local competitors. See our full startup guide.
Are there tax breaks for daycare owners?
Yes. Home-based providers can deduct part of their household costs for business use of the home, and daycare gets a special IRS rule that does not require the space to be used exclusively for the business (the time-space percentage). You can also deduct supplies, food, training, and mileage. Confirm the details with a tax professional.
The all-in-one platform new owners open with
Software is a small line item that saves the biggest one — staff time. MyKidReports replaces the tools most owners buy separately, in one platform. Free for up to 5 children, then $0.99 per child per month.
Billing & autopay
Automated invoicing, autopay, and online payments so tuition arrives on time.
Contactless check-in
QR and PIN check-in/out with live attendance and ratio tracking.
Digital enrollment
Online admissions, waitlists, and paperless enrollment packets.
Parent app & messaging
Daily reports, photos, and two-way messaging families love.
Website builder
A daycare website that gets you found by nearby families.
Reports & records
Licensing-ready records, food program logs, and owner reports.
The full daycare startup series
Five connected guides that walk you from first idea to open doors.
How to Start a Daycare
The complete 13-step guide from idea to open doors.
Read the guide → LicensingLicense Requirements
Background checks, training, ratios, inspections.
Read the guide → ChecklistOpening Checklist
Every step to open, grouped by phase.
Read the guide → PlanningBusiness Plan
The 8 sections and financials lenders want.
Read the guide →Open organized — and stay that way.
Once you're licensed, MyKidReports runs the daily operations you just mapped out: billing and autopay, contactless check-in, digital enrollment, and parent messaging. Free for up to 5 children, then $0.99 per child per month.
No setup fees, no contracts. Website and marketing tools available when you're ready.
