How Much Do Daycare Owners Make?
How Much Do Daycare Owners Make?
How much do daycare owners make?
Daycare owners make an average annual salary of $36,000 to $100,000, with those operating larger or specialized centers earning even more. Top earners in metropolitan areas reach $120,000 to $240,000+ per year, while small home-based providers see lower annual earnings. Besides location, daycare owner salaries vary widely based on the facility size, program offerings, and operations.
| Facility type | Average monthly income | Average annual income |
|---|---|---|
| Small in-home daycare | $3,000 – $5,000 | $36,000 – $60,000 |
| Large in-home daycare | $4,000 – $7,000 | $48,000 – $84,000 |
| Mid-sized center | $6,000 – $8,300 | $72,000 – $100,000 |
| Large daycare center | $10,000 – $20,000+ | $120,000 – $240,000+ |
How much does a daycare owner make a month?
Daycare owner income averages $3,000 to $20,000+ per month, but it can fluctuate based on enrollment and expenses. For example, a home-based daycare may net $3,000 to $7,000 per month after expenses. Large centers can see net income reach $20,000+ per month, provided they operate efficiently and have high enrollment.
Running a daycare costs $1,600 to $11,400 per month for in-home daycares or $17,700 to $28,400 per month for center-based daycares. Daycare owners can calculate take-home pay by subtracting expenses from the gross income.
Factors that affect daycare owner salary
Multiple factors influence a daycare owner's earnings:
Geographic location: Daycares in urban areas tend to charge higher fees but have higher operating costs.
Enrollment: The size and capacity of the daycare directly impacts income. If you have the maximum allowed children enrolled for your facility, you'll make more.
Efficient management: Owners have to budget for daycare expenses such as staff salaries, facility costs, supplies, insurance, and compliance fees. Most owners aim for 20% to 30% profits in net revenue after expenses.
Range of services: Offering services such as transportation, special needs programs, or extended hours can allow for premium pricing.
Taxes: Daycare owners are responsible for business taxes including federal, state, and local income taxes, payroll taxes for employees, and self-employment taxes. Deductible expenses often include supplies, facility costs, insurance, and licensing fees.
If you're considering opening a daycare but don't know where to start, check out our guides on How to Start a Daycare or How to Start a Daycare at Home.
Daycare center type
Daycare owners operate different types of centers, each with its own financial profile.
Home-based daycares serve fewer children and have lower overhead, so owners keep a larger share of revenue.
Commercial daycare centers have higher capacity and can earn more, but face greater expenses for rent, staffing, and utilities.
Specialized centers provide niche services that allow them to charge higher fees, though these require extra staff and resources.
Your role & hours
A daycare owner's role can be both managerial and hands-on, especially in small or home-based settings where they may handle daily care, finances, and parent communication themselves. Owners of larger or commercial daycare centers may oversee staff, direct operations, and focus on business growth and compliance.
Work hours vary depending on your involvement. Home-based daycare owners may work directly with children 40 to 50 hours per week, while large center owners may work similar or longer hours if they're involved in leadership, staff management, and administrative tasks.
Tips for maximizing daycare profits
Daycare owners often spend the most on staff salaries, rent, insurance, and supplies. Payroll can account for 60% to 70% of expenses. The following tips help increase daycare profitability while sustaining high-quality care for families:
Maintain full enrollment to maximize gross revenue.
Offer diversified services such as after-school programs, transportation, extracurricular activities, after-hours parent date nights, or premium curriculums.
Join TrustedCare for free to reach more potential customers.
Create a parent referral program to incentivize bringing in more families.
Monitor costs and seek efficiency without sacrificing the quality of care.
Adjust your fees based on local demand and improvements to services.
Create branded products or keepsakes.
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.