Daycare startup costs depend heavily on the program type. A family child care home spends on safety upgrades, furniture, cribs, toys and learning materials, outdoor equipment, insurance, licensing fees and training. A center adds a lease or building, build-out to licensing standards, multiple classrooms, kitchen equipment, staff hired before opening, and a larger working capital cushion.
Itemized budget
| Line | Family home | Center |
|---|---|---|
| Space and build-out | Safety upgrades, gates, fencing | Lease, build-out to licensing and fire codes |
| Furniture | Cots, cribs, tables, cubbies | Same, per classroom |
| Learning materials | Toys, books, art supplies | Curriculum kits per room |
| Outdoor play | Age-appropriate equipment | Playground with safety surfacing |
| Kitchen | Home kitchen meeting rules | Commercial kitchen if required |
| Licensing and training | Fees, CPR, first aid | Same for all staff |
| Insurance | Home child care liability | Center liability, property, workers' comp |
| Staff before opening | Assistant if needed | Director and teachers for training |
| Software | Billing and parent communication | Same, larger plan |
| Website | Tours, tuition, policies | From $399 plus $30/month Website Care |
Worked example: setting tuition by age group
Tasha lists her weekly costs: food, supplies, insurance, utilities share, her own pay, an assistant's pay and savings for replacements. Because infants require lower ratios, she can care for fewer infants than preschoolers, so infant tuition must cover more cost per child. She checks her state's market rate survey, which many states publish for subsidy purposes, to see the local range, then sets infant, toddler and preschool rates that cover costs and fit the market.
Costs providers forget
- Replacing worn toys and cribs
- Substitute care when the provider is sick
- Ongoing training hours
- Cleaning and sanitizing supplies
- Unpaid tuition when families leave abruptly
One-time costs
| Item | Your quote |
|---|---|
| Facility setup | $ ______ |
| Licensing | $ ______ |
| Equipment | $ ______ |
| Website build and domain | $ ______ |
Monthly costs
| Item | Your quote |
|---|---|
| Rent | $ ______ / month |
| Staff | $ ______ / month |
| Food | $ ______ / month |
| Insurance | $ ______ / month |
| Software | $ ______ / month |
| Website care | $ ______ / month |
Free tools
Common questions
How much does it cost to open a family daycare?
It varies with the condition of your home and state rules. List each item and get quotes rather than relying on averages.
Can the food program help?
CACFP reimburses eligible meals and snacks for participating providers; contact your state agency or a sponsor.
Should I charge a registration fee?
Many programs do, along with a deposit; state it clearly in the handbook.
Do subsidies cover my full rate?
Not always. Ask your state agency how subsidy rates and parent copays work.
Should I budget for empty spots?
Yes. New programs rarely start full, so plan cash for several months of partial enrollment.
Sources
Sources checked October 6, 2026. Rules, fees and forms change; confirm details with the agency or provider before you act. This guide is general information, not legal, tax or insurance advice.
Get your website-ready checklist, then see starter options
Fill in the free website-ready checklist while you set up. When you are ready, starter websites begin at $399 with your domain included. Start with the free checklist.
See starter website options