How much do home daycare providers make?

Home daycare providers typically net $25,000–$55,000 per year after expenses. In high-cost states like California, Massachusetts, and New York, rates are higher and net income can reach $50,000–$75,000 for a fully enrolled family daycare (6–8 children). In lower-cost states, net income typically runs $20,000–$40,000. These figures are before income taxes and exclude the value of care provided to the provider's own children.

How many kids can you watch in a home daycare?

Home daycare capacity limits vary by state. Most states allow 6–8 children total in a licensed family daycare home, often with no more than 2 infants (under 2 years). A few states allow up to 12 children with an assistant. The family daycare home category (up to 6–8 children) does not require commercial space, keeping overhead low. Operating without a license is illegal in most states above 1–2 unrelated children.

What are the startup costs for a home daycare?

Home daycare startup costs run $3,000–$12,000 for most providers. Main items: licensing and inspections ($200–$500), liability insurance ($400–$800/year), safety equipment and childproofing ($500–$1,500), playground equipment if outdoor space is limited ($1,000–$3,000), curriculum materials and toys ($500–$1,500), and CPR/First Aid certification ($50–$150). Some states offer startup grants through Child Care Development Block Grants.

Is running a home daycare worth it financially?

It depends on your state's rates and your capacity. In high-cost metros, a licensed family daycare (6–8 children) charging $1,500–$2,000/month per child can gross $108,000–$192,000 annually. After food, supplies, insurance, and utilities, net income typically runs $55,000–$100,000. In lower-cost states with rates of $700–$1,000/month, gross is $50,000–$80,000 and net is $25,000–$45,000. The financial floor is low, the ceiling is competitive with many entry-level professional salaries.

Home Daycare Income Calculator (2026)

How much can you make running a home daycare? Enter your state, enrollment, and rates to calculate monthly revenue, operating costs, and net income.

Your Home Daycare Setup

State (sets rate benchmarks)

License Type

Enrollment & Rates

Children Enrolled (full-time)

Infants (under 2 years)

Typically charged 20–30% more

Hours Per Day Open

Monthly Rates (optional — leave at 0 to use state benchmarks)

Enter your actual monthly rate per child. Defaults use state median rates.

Monthly Rate — Toddlers & Preschool

Monthly Rate — Infants (under 2)

Home daycare income by state tier

CA, MA, NY, WA, CT $1,400–$2,200 / child / month

6 children: $8,400–$13,200/month gross

TX, FL, GA, VA, PA $900–$1,400 / child / month

6 children: $5,400–$8,400/month gross

MS, AR, WV, KY, ID $550–$900 / child / month

6 children: $3,300–$5,400/month gross

Source: Child Care Aware of America, National Database of Childcare Prices (2024)

The real math of home daycare

Home daycare economics are simple: more children at higher rates, lower overhead than a center. The constraints are state licensing caps and your own capacity.

→Zero rent cost is the biggest advantage over center-based care. That's $2,000–$8,000/month in savings.
→CACFP food reimbursement offsets 40–70% of food costs if you're enrolled.
!One vacant slot at $1,200/month = $14,400/year lost. Full enrollment matters a lot.
!Illness closures (yours or children's) reduce annual income by 5–10%. Build a 1-month cash reserve.

Starting a home daycare — common questions

How long does it take to get a home daycare license?

Typically 2–6 months from application to first day of operation. The main steps: home inspection by licensing agency, background checks (you + all household members), CPR/First Aid certification, pre-licensing training (often 15–30 hours), and fire safety inspection. California and New York tend to run 4–6 months. Texas runs 60–90 days. States with online pre-licensing are faster.

What is the Time-Space Percentage deduction?

The Time-Space Percentage (IRS Form 8829) lets you deduct the business-use portion of your home as a business expense. If 30% of your home's square footage is used for daycare and you operate 40 hours/week in a 168-hour week, your T/S% is roughly 30% × (40/168) = 7.1%. Apply that to your rent/mortgage, utilities, repairs, and home maintenance. On a $2,000/month mortgage, that's $142/month or $1,700/year in deductions. Most home daycare providers have a T/S% of 25–45%.

What's CACFP and how does it help income?

The Child and Adult Care Food Program (CACFP) reimburses licensed home daycare providers for meals served to enrolled children. Reimbursement runs $1.39–$2.86 per breakfast, $2.61–$5.36 per lunch/dinner (2024 rates), and $0.78–$1.57 per snack. On 6 children eating 2 meals + 1 snack daily, reimbursement can reach $400–$700/month — offsetting most of your food costs.

How do you find families for a home daycare?

Care.com and local Facebook parent groups are the fastest channels. Child Care Resource and Referral (CCR&R) agencies list licensed providers for free and send families your way — worth registering with. Word of mouth from one satisfied family typically fills your next opening. Waitlists form in high-demand areas (urban CA, NY, MA) within 3–6 months of licensing. Rural and low-demand areas may take 6–12 months to reach full enrollment.

Data: ACF Child Care and Development Fund (CCDF) Market Rate Surveys, BLS Consumer Expenditure Survey, ACF CCDF Policy Database

Last updated: January 2026

How we calculate this · Subsidy eligibility estimates are indicative only. Contact your state's childcare resource agency for current availability.