Free Daycare Tuition Calculator
Setting the right tuition is one of the hardest decisions in running a childcare center. Charge too little and you lose money. Charge too much and enrollment suffers. This calculator uses your actual costs and target profit margin to give you a data-backed number — not a guess.
Last updated: April 2026
Compiled by the TotReady Research TeamNational average: The average monthly cost of center-based childcare in the United States is $1,230 for infants and $970 for preschool-age children, according to the Economic Policy Institute. Use the calculator below to see how your rates compare to your actual costs.
Monthly Operating Costs
Enter your estimated monthly expenses. Use round numbers — you can refine them as you go.
Capacity & Profit Goal
Enter the number of children your facility is licensed to serve and the profit margin you want to target.
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How to Set Daycare Tuition Rates
Most childcare providers set tuition by looking at what nearby centers charge and choosing a number that feels competitive. That approach works until something changes — a rent increase, a minimum wage hike, or a spike in food costs. A cost-based pricing model gives you a floor you can defend: every dollar of tuition is tied to a real expense, plus a margin that makes the business viable long-term.
Factors that determine what you need to charge
Staff salaries and benefits are almost always the single largest expense — frequently 60 to 70 percent of total operating costs. Rent is usually next. When you add insurance, food, supplies, utilities, and administrative costs, the total can easily run $500 to $800 per enrolled child per month even before profit. Programs serving infants and young toddlers face higher costs because state licensing ratios require more staff per child — a 1:4 infant room needs twice the staff of a 1:8 preschool room at the same enrollment size.
Your licensed capacity is just as important as your costs. A center with $20,000 in monthly costs and 40 licensed slots needs only $500 per child to break even — but a center with the same costs and 20 slots needs $1,000. Maximizing your licensed capacity (within your physical space constraints and ratio requirements) is one of the most powerful levers you have on tuition affordability.
Common pricing models
Most centers charge a flat monthly rate regardless of attendance, which provides predictable revenue and simplifies billing. Some offer weekly or daily rates for part-time families — typically priced at a premium over the monthly equivalent to account for the scheduling flexibility you are providing. A daily rate set at one-fifth of the weekly rate and a weekly rate set at roughly one-fourth of the monthly rate are standard starting points, but many centers add a 10 to 20 percent premium on daily drop-in slots to compensate for the harder-to-fill schedule.
Some centers use tiered pricing by age group, charging more for infant rooms than preschool rooms. This reflects the higher staffing costs of infant care and is standard practice in most markets. If you run multiple age groups, you can calculate separate rates for each group by running this calculator with the costs and capacity specific to each classroom.
When to raise rates
Annual increases of 3 to 5 percent are common and generally expected by families. A rate that stays flat for two or three years while costs rise means your margin is quietly shrinking — and a sudden large increase to catch up is much harder for families to absorb than small annual adjustments. Good times to raise rates include the start of the school year, the calendar new year, or when a new enrollment period begins. Give families at least 30 to 60 days written notice, explain the reason briefly, and provide the new rate schedule in writing. If you use a parent handbook, the tuition schedule and rate increase policy should be clearly documented there so families know what to expect.
Frequently Asked Questions
How do I calculate how much to charge for daycare?
Add up all your monthly operating costs, divide by your licensed capacity to get cost per child, then divide by (1 minus your target margin) to get the tuition rate that covers costs and generates profit. This calculator does that math automatically.
What is the average cost of daycare per month?
The average monthly cost of center-based childcare in the United States is $1,230 for infants and $970 for preschool-age children. Costs vary significantly by state and local market — urban centers in high cost-of-living areas often run two to three times the national average.
What factors matter most when pricing childcare?
Staff salaries and rent together typically account for 70 to 80 percent of operating costs — get those right first. Age groups served matter because infant rooms require lower ratios and therefore more staff. Your licensed capacity directly determines how many children share your fixed costs.
When should I raise daycare tuition rates?
Raise rates annually — 3 to 5 percent per year is standard and less disruptive than large infrequent increases. Good triggers include rent increases, minimum wage changes, or sustained full enrollment. Give families at least 30 days written notice and document the policy in your parent handbook.