How much profit does a daycare center make?
The average daycare center owner reported earning just $37,000 per year in profit. Although this is the average, this number can contain many very small daycare centers and in-home daycares that makes earning a significant profit difficult. It is certainly possible to earn a significant profit from a daycare center if your center is large enough. Our daycare financial projection template can help you see how much increasing the capacity of your daycare can impact your projected profitability.
Are daycare centers profitable?
Yes. The average daycare center owner reported earning $37,000 per year in profit. The profitability potential of your daycare center is tied very closely to the capacity of your center.
Is opening a daycare worth it?
Yes. Opening a daycare can be both a profitable and rewarding business. While the average daycare center owner reports only $37,000 in annual profit, this number includes many in-home daycare centers and small centers. Larger daycare centers can earn a significant profit. So much of the profitability is centered around your daycare capacity. If you can afford the startup costs associated with a larger daycare center, you will greatly increase your potential profits.
What is the startup cost for a daycare center?
The average startup cost for a daycare center can range between $10,000 and $100,000+. Small, in-home daycare centers can open their doors for as little as $10,000, but larger daycare centers could cost $100,000 or more to open. Daycare center startup costs can include:
- Kitchen equipment and remodeling
- Bathroom remodeling
- Outdoor fencing and playground equipment
- Child check-in system
- Tables, chairs, toys and supplies
- Remodeling of space to “child-proof” the space
