How Much Does It Cost to Start a Daycare Center?
Last updated: May 2026
National Average
Low
$60,000
Medium
$180,000
High
$500,000
A licensed childcare facility providing full-day supervision and early education for infants through school-age children.
Time to Launch
4-12 months
Profit Margins
10-20%
Break-Even Timeline
18-36 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Daycare Center in Nationally
Budget:
$80,000
$20,000
$30,000
$5,000
$20,000
$10,000
$2,000
$5,000
$40,000
Options
Employees:
Startup Costs
$212,000
Monthly Costs
$25,000
First Year Total
$512,000
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $46,200 | $138,600 | $385,000 | $50 | 7.0% |
| West Virginia | $46,200 | $138,600 | $385,000 | $100 | 6.0% |
| Oklahoma | $48,000 | $144,000 | $400,000 | $100 | 4.5% |
| Alabama | $48,600 | $145,800 | $405,000 | $200 | 4.0% |
| Arkansas | $48,600 | $145,800 | $405,000 | $45 | 6.5% |
| North Dakota | $49,200 | $147,600 | $410,000 | $135 | 5.0% |
| Iowa | $49,800 | $149,400 | $415,000 | $50 | 6.0% |
| Kansas | $49,800 | $149,400 | $415,000 | $160 | 6.5% |
| Missouri | $49,800 | $149,400 | $415,000 | $50 | 4.2% |
| South Dakota | $49,800 | $149,400 | $415,000 | $150 | 4.2% |
| Kentucky | $50,400 | $151,200 | $420,000 | $40 | 6.0% |
| Louisiana | $50,400 | $151,200 | $420,000 | $100 | 5.0% |
| Wyoming | $50,400 | $151,200 | $420,000 | $100 | 4.0% |
| Nebraska | $51,000 | $153,000 | $425,000 | $105 | 5.5% |
| Indiana | $51,600 | $154,800 | $430,000 | $95 | 7.0% |
| Michigan | $52,800 | $158,400 | $440,000 | $50 | 6.0% |
| Ohio | $52,800 | $158,400 | $440,000 | $99 | 5.8% |
| New Mexico | $54,000 | $162,000 | $450,000 | $50 | 4.9% |
| South Carolina | $54,000 | $162,000 | $450,000 | $110 | 6.0% |
| Wisconsin | $54,600 | $163,800 | $455,000 | $130 | 5.0% |
| Tennessee | $55,200 | $165,600 | $460,000 | $300 | 7.0% |
| Texas | $55,200 | $165,600 | $460,000 | $300 | 6.3% |
| Georgia | $56,400 | $169,200 | $470,000 | $100 | 4.0% |
| Minnesota | $56,400 | $169,200 | $470,000 | $155 | 6.9% |
| Illinois | $57,000 | $171,000 | $475,000 | $150 | 6.3% |
| Idaho | $57,600 | $172,800 | $480,000 | $100 | 6.0% |
| North Carolina | $57,600 | $172,800 | $480,000 | $125 | 4.8% |
| Pennsylvania | $57,600 | $172,800 | $480,000 | $125 | 6.0% |
| Montana | $58,200 | $174,600 | $485,000 | $35 | 0.0% |
| Utah | $60,000 | $180,000 | $500,000 | $54 | 6.1% |
| Delaware | $62,400 | $187,200 | $520,000 | $110 | 0.0% |
| Nevada | $63,000 | $189,000 | $525,000 | $425 | 6.8% |
| Virginia | $64,200 | $192,600 | $535,000 | $100 | 5.3% |
| Vermont | $65,400 | $196,200 | $545,000 | $125 | 6.0% |
| Arizona | $66,000 | $198,000 | $550,000 | $50 | 5.6% |
| Colorado | $66,000 | $198,000 | $550,000 | $50 | 2.9% |
| Florida | $67,200 | $201,600 | $560,000 | $125 | 6.0% |
| Oregon | $67,200 | $201,600 | $560,000 | $100 | 0.0% |
| Rhode Island | $67,200 | $201,600 | $560,000 | $150 | 7.0% |
| Maine | $68,400 | $205,200 | $570,000 | $175 | 5.5% |
| New Hampshire | $70,200 | $210,600 | $585,000 | $102 | 0.0% |
| Washington | $70,800 | $212,400 | $590,000 | $200 | 6.5% |
| Connecticut | $71,400 | $214,200 | $595,000 | $120 | 6.3% |
| Maryland | $72,600 | $217,800 | $605,000 | $100 | 6.0% |
| New Jersey | $75,000 | $225,000 | $625,000 | $125 | 6.6% |
| Alaska | $76,200 | $228,600 | $635,000 | $250 | 0.0% |
| New York | $83,400 | $250,200 | $695,000 | $200 | 4.0% |
| California | $91,200 | $273,600 | $760,000 | $70 | 7.3% |
| Massachusetts | $92,400 | $277,200 | $770,000 | $500 | 6.3% |
| Hawaii | $115,800 | $347,400 | $965,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$138,600
- West Virginia$138,600
- Oklahoma$144,000
- Alabama$145,800
- Arkansas$145,800
5 Most Expensive States
- Hawaii$347,400
- Massachusetts$277,200
- California$273,600
- New York$250,200
- Alaska$228,600
Frequently Asked Questions
Opening a daycare center spans a wide range driven primarily by capacity. A small home-based daycare for a handful of children can launch in the low five figures. A licensed commercial daycare center for several dozen children requires meaningfully more — well into the six figures. A large full-service childcare center for 100+ children requires materially more capital. Use the calculator on this page to model your specific scenario.
State childcare licensing takes 3-9 months on average. The process involves submitting an application, facility inspections (fire, health, licensing), background checks for all staff, staff training verification, and a licensing visit. Start the licensing process immediately after finding your facility.
Capacity depends on your facility size and state ratio requirements. Typical ratios: infants (1:4), toddlers (1:6), preschoolers (1:10-12). A multi-thousand-square-foot facility can serve dozens of children once ratio requirements are factored in. Most states cap home daycares at a small number of children.
Daycare centers can net low-double-digit percentage margins at full capacity. A multi-dozen-child center charging the local average monthly tuition grosses meaningful annual revenue. After staff labor (a substantial share of revenue), rent, supplies, and insurance, healthy net profit is achievable. The key is maintaining high occupancy consistently.
Requirements vary by state and staff role. Lead teachers typically need a CDA credential, an associate's degree in early childhood education, or a bachelor's degree. Aides may need only adult age and a high school diploma plus CPR certification. All staff must pass a background check.
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