How Much Does It Cost to Open a Daycare? Home Daycare vs Daycare Center Startup Costs
How much it costs to start a daycare
In this article
Opening a home daycare can cost from a few thousand dollars (safety upgrades, equipment, licensing, insurance), while a daycare center often costs tens of thousands to several hundred thousand dollars or more, driven by the facility lease or purchase, renovations to meet licensing codes, equipment, staffing before enrolment fills, and working capital. Local rules, size and whether you renovate an existing childcare space make a big difference.
Rough startup costs by type
| Type | Rough range | Main costs |
|---|---|---|
| Home daycare | Low thousands | Safety items, toys, cots, licensing, insurance |
| Small center | Tens of thousands to $100k+ | Lease, build-out, equipment, staff |
| Large center | $100k–$500k+ | Facility, renovations, playground, staff |
| Franchise | Varies | Franchise fees + build-out |
Cost breakdown
- Facility lease/purchase and deposits
- Renovations (bathrooms, kitchens, fire safety, accessibility)
- Furniture, toys, learning materials, cribs/cots
- Outdoor play equipment and fencing
- Licensing, background checks, training
- Insurance
- Childcare software and technology
- Marketing and website
- Pre-opening staff wages and working capital
Monthly operating costs
Staff wages (largest), rent, utilities, food, supplies, insurance, software, maintenance, marketing.
Funding
Savings, small business loans, grants and childcare stabilisation/expansion programmes where available, investors, and pre-enrolment deposits.
Profitability drivers
Full enrolment, appropriate tuition, efficient staffing within ratios, waitlists, and controlled overhead. (Steps: How to start a daycare.)
Frequently asked questions
How much does it cost to open a daycare?
From a few thousand dollars for a home daycare to tens or hundreds of thousands for a daycare center.
How much does it cost to start a home daycare?
Usually the lowest-cost option: safety upgrades, supplies, licensing, training and insurance.
What is the biggest cost of running a daycare?
Staff wages, followed by rent or facility costs.
Are there grants to start a daycare?
Some regions offer childcare grants or programmes; check local government and childcare agencies.
Is a daycare business profitable?
It can be with strong enrolment, appropriate tuition and efficient staffing.
How can I reduce daycare startup costs?
Start home-based, lease an existing childcare facility, buy used equipment and apply for available grants.
Want a daycare website with online enrolment built for your business?
I design and build fast, modern websites that turn visitors into customers, with booking, WhatsApp and automations built in. Tell me about your business.
Start a conversationWritten by Sachin Rawat
AI & automation engineer · websites, apps and motion design
I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.
Work with meMore stories