How much should I charge for daycare?

Start from your own numbers, not a national average. Add up your monthly operating cost — rent, wages, food, supplies, insurance, licensing — and divide by your licensed capacity to find your break-even price per child. Then pull the local market rate for each age group by calling comparable programs near you, and position at or slightly above the local median if your program offers more. As an approximate reference, full-time center-based infant care ran from roughly $575 per month in lower-cost states to over $1,800 per month in California and Hawaii in 2022-2024 market data, with preschool-age care typically a few hundred dollars cheaper. These are approximate market averages, not a price quote — verify current rates with local providers and your state's child care agency before setting tuition.

How much do daycares charge per week?

It varies widely by state, age group, and whether it is a center or a home program. Many full-time center spots fall in the rough range of $150 to $450 per week for infants and somewhat less for preschoolers, but high-cost states run well above that. The cleanest way to find your number is to divide a comparable local program's monthly tuition by about 4.3 weeks. Use the approximate state benchmark table below as a starting point, then confirm with providers in your own area.

What should I charge for in-home daycare?

Home-based (family child care) programs usually charge somewhat less than centers in the same area because overhead is lower, but the pricing method is identical: find your break-even cost, then anchor to the local market by age group. Because a home program serves fewer children, every empty spot hurts more — so price for sustainable margin, not the lowest rate in the neighborhood. Underpricing a home daycare is common and leaves you unable to pay yourself a fair wage.

Should I charge more for infants than for older children?

Almost always, yes. State staffing ratios require many more caregivers per child for babies — often one adult for every three or four infants versus one for every ten or twelve preschoolers — so your labor cost per infant is far higher. That is why nearly every state's average infant price sits above its preschool price. Pricing all age groups the same usually means you lose money on infants and leave money on the table with preschoolers.

Is it better to use cost-plus pricing or match the local market?

Use both, in order. Cost-plus pricing — your break-even cost plus a target margin — sets the floor you must clear to stay in business. Local market rates set the ceiling families will actually pay. Your tuition should land between the two: never below your cost-plus floor, and benchmarked against the local market so you are competitive. If your cost-plus floor is higher than the local market will bear, that is a signal to fix costs or program model, not to price below break-even.

Pricing Guide

How Much to Charge for Daycare: Pricing Guide by State

A practical way to set tuition you can defend — and live on

Last updated: June 2026

Researched by the TotReady Research Team

There is no single right price for daycare. The right number for your program comes from two things: what one filled spot has to cost you to break even, and what comparable programs near you actually charge by age group. This guide walks through that method step by step, then gives you an approximate state-by-state benchmark so you have a starting point for your own local research.

Short answer: Set daycare tuition by starting from your break-even cost per child, then anchoring to your local market rate for each age group, and positioning at or slightly above the local median if your program offers more. As an approximate 2022-2024 reference, full-time center-based infant care ranged from about $575 per month in lower-cost states to over $1,800 per month in California and Hawaii. Verify current local rates before you set a price.

Two numbers decide your price

Every workable daycare price sits between a floor and a ceiling. The floor is your cost; the ceiling is the local market. Set tuition between them.

The floor

Cost-plus pricing

Your break-even cost per child plus the margin you need to pay yourself and stay open. This is the least you can charge. Price under it and every family costs you money.

The ceiling

Local market rate

What comparable programs near you charge by age group. This is roughly the most families will pay. Benchmark to it so you stay competitive without underpricing.

If the floor is above the ceiling — your costs are higher than the local market will bear — that is a signal to fix your costs or your program model, not to price below break-even and hope volume saves you.

How to set your daycare price, step by step

Work through these in order. The first two do the heavy lifting; the rest keep your pricing fair and durable.

Find your break-even number first

Before you look at what anyone else charges, add up what one filled spot has to cover: your share of rent or mortgage, staff wages and payroll taxes, food, supplies, insurance, and licensing renewals. Divide your monthly operating cost by the number of children you can legally enroll. That floor is the least you can charge per child and still keep the lights on. Price below it and you lose money on every family.

Pull the local market rate for each age group

Infant, toddler, and preschool care are priced separately because state staffing ratios force you to put far more adults on a room of babies than a room of four-year-olds. Call five or six comparable programs near you, or check your state's child care resource and referral agency, and write down what each charges by age. The benchmark table below gives you an approximate starting range by state — use it to sanity-check your local research, not to replace it.

Position against the local median, not the cheapest provider

Once you know the local range, decide where you sit. If your program offers more — lower ratios, a real curriculum, longer hours, cleaner facility — price at or slightly above the local median. Underpricing is the most common mistake new providers make. It signals lower quality to many parents and starves the margin you need to pay good staff and avoid burnout.

Add your fees and policies on top of tuition

Your headline tuition is not your only revenue. Most programs charge a one-time registration fee, a supply or materials fee, and late-pickup fees. Spell out your payment schedule (weekly, biweekly, or monthly), your late-payment policy, and your holiday and sick-day billing rules in writing before a family enrolls. Vague payment terms are the number-one source of awkward money conversations later.

Raise prices on a schedule, not in a panic

Set tuition with a built-in plan to revisit it once a year, ideally at the start of your enrollment cycle. Give families 30 to 60 days written notice of any increase. Predictable, modest annual increases are far easier for parents to accept than a sudden jump when your costs catch up to you. Reactive pricing — raising rates the moment a spot opens — erodes trust.

Approximate daycare price benchmarks by state

Use these as a starting point for your local research, not a price to copy. Each figure is the approximate average full-time center-based price for that age group from roughly 2022-2024 market data, with a rough monthly equivalent. Prices vary widely by county and program, and they change every year. See the full cited 50-state table for the source and year behind each number.

Approximate average full-time center-based infant and preschool daycare price by state, with a rough monthly equivalent, for a representative sample of states.
State	Avg Infant (approx./yr)	Infant (approx./mo)	Avg Preschool (approx./yr)	Preschool (approx./mo)
California	$22,628	$1,885	$16,665	$1,390
Texas	$9,324	$775	$7,000	$585
New York	$13,869	$1,155	$11,679	$975
Illinois	$12,257	$1,020	$9,481	$790
Arizona	$15,964	$1,330	$11,680	$975
Georgia	$6,591	$550	$6,034	$505
North Carolina	$12,370	$1,030	$10,381	$865
Massachusetts	$26,343	$2,195	$20,669	$1,720
Connecticut	$19,500	$1,625	$14,560	$1,215
New Jersey	$20,213	$1,685	$19,448	$1,620
Michigan	$13,454	$1,120	$12,246	$1,020
Colorado	$20,978	$1,750	$17,479	$1,455

California

Infant (approx./yr): $22,628
Infant (approx./mo): $1,885
Preschool (approx./yr): $16,665
Preschool (approx./mo): $1,390

Texas

Infant (approx./yr): $9,324
Infant (approx./mo): $775
Preschool (approx./yr): $7,000
Preschool (approx./mo): $585

New York

Infant (approx./yr): $13,869
Infant (approx./mo): $1,155
Preschool (approx./yr): $11,679
Preschool (approx./mo): $975

Illinois

Infant (approx./yr): $12,257
Infant (approx./mo): $1,020
Preschool (approx./yr): $9,481
Preschool (approx./mo): $790

Arizona

Infant (approx./yr): $15,964
Infant (approx./mo): $1,330
Preschool (approx./yr): $11,680
Preschool (approx./mo): $975

Georgia

Infant (approx./yr): $6,591
Infant (approx./mo): $550
Preschool (approx./yr): $6,034
Preschool (approx./mo): $505

North Carolina

Infant (approx./yr): $12,370
Infant (approx./mo): $1,030
Preschool (approx./yr): $10,381
Preschool (approx./mo): $865

Massachusetts

Infant (approx./yr): $26,343
Infant (approx./mo): $2,195
Preschool (approx./yr): $20,669
Preschool (approx./mo): $1,720

Connecticut

Infant (approx./yr): $19,500
Infant (approx./mo): $1,625
Preschool (approx./yr): $14,560
Preschool (approx./mo): $1,215

New Jersey

Infant (approx./yr): $20,213
Infant (approx./mo): $1,685
Preschool (approx./yr): $19,448
Preschool (approx./mo): $1,620

Michigan

Infant (approx./yr): $13,454
Infant (approx./mo): $1,120
Preschool (approx./yr): $12,246
Preschool (approx./mo): $1,020

Colorado

Infant (approx./yr): $20,978
Infant (approx./mo): $1,750
Preschool (approx./yr): $17,479
Preschool (approx./mo): $1,455

These are approximate market averages, not a price quote. Figures are compiled by the TotReady Research Team from the U.S. Department of Labor National Database of Childcare Prices, Child Care Aware of America affordability analyses, and individual state market-rate surveys (roughly 2022-2024). The monthly equivalent is the annual figure divided by twelve, rounded for readability. Underlying sources report county-level or percentile data rather than a single official statewide price. Verify current rates with local providers and your state child care agency before setting tuition.

Pricing mistakes that cost providers the most

Pricing to be the cheapest in town

The cheapest program rarely wins the families you want, and it cannot pay staff well enough to keep them. Low price signals low quality to many parents.

Charging one flat rate for every age

Infants cost far more to staff than preschoolers because of ratio rules. A single rate loses money on babies and underprices older kids.

Forgetting the fees

Registration, supply, and late-pickup fees are real revenue. Leaving them off means you quietly subsidize costs that should be covered.

Never raising prices

Costs rise every year. A program that holds tuition flat for three years then jumps it 15% loses trust. Small annual increases are easier to accept.

Frequently asked questions about daycare pricing

How much should I charge for daycare?: Start from your own numbers, not a national average. Add up your monthly operating cost — rent, wages, food, supplies, insurance, licensing — and divide by your licensed capacity to find your break-even price per child. Then pull the local market rate for each age group by calling comparable programs near you, and position at or slightly above the local median if your program offers more. As an approximate reference, full-time center-based infant care ran from roughly $575 per month in lower-cost states to over $1,800 per month in California and Hawaii in 2022-2024 market data, with preschool-age care typically a few hundred dollars cheaper. These are approximate market averages, not a price quote — verify current rates with local providers and your state's child care agency before setting tuition.
How much do daycares charge per week?: It varies widely by state, age group, and whether it is a center or a home program. Many full-time center spots fall in the rough range of $150 to $450 per week for infants and somewhat less for preschoolers, but high-cost states run well above that. The cleanest way to find your number is to divide a comparable local program's monthly tuition by about 4.3 weeks. Use the approximate state benchmark table below as a starting point, then confirm with providers in your own area.
What should I charge for in-home daycare?: Home-based (family child care) programs usually charge somewhat less than centers in the same area because overhead is lower, but the pricing method is identical: find your break-even cost, then anchor to the local market by age group. Because a home program serves fewer children, every empty spot hurts more — so price for sustainable margin, not the lowest rate in the neighborhood. Underpricing a home daycare is common and leaves you unable to pay yourself a fair wage.
Should I charge more for infants than for older children?: Almost always, yes. State staffing ratios require many more caregivers per child for babies — often one adult for every three or four infants versus one for every ten or twelve preschoolers — so your labor cost per infant is far higher. That is why nearly every state's average infant price sits above its preschool price. Pricing all age groups the same usually means you lose money on infants and leave money on the table with preschoolers.
Is it better to use cost-plus pricing or match the local market?: Use both, in order. Cost-plus pricing — your break-even cost plus a target margin — sets the floor you must clear to stay in business. Local market rates set the ceiling families will actually pay. Your tuition should land between the two: never below your cost-plus floor, and benchmarked against the local market so you are competitive. If your cost-plus floor is higher than the local market will bear, that is a signal to fix costs or program model, not to price below break-even.

Coming soon — the Enrollment Kit

Set your tuition with a worksheet, not a guess

We're building the TotReady Enrollment Kit: a break-even and local-pricing worksheet, an enrollment-form packet, and tour follow-up templates — the pieces that turn this method into a tuition number you can defend to families and live on. Until it ships, you can build your forms free and see what we offer today.

See TotReady products →Or browse the full cited cost data by state →

Related guides

Average Daycare Cost by State

The full cited 50-state infant and preschool price reference, with sources.

See the costs →

How to Increase Daycare Enrollment

A five-part system to fill open spots once your price is set.

Read the guide →

How to Start a Daycare

From program type and business plan through opening day.

Read the guide →

State Childcare Requirements

Ratios and rules that drive your staffing cost — and your price floor.

Check your state →

Daycare price benchmarks on this page are approximate market averages compiled from the U.S. Department of Labor National Database of Childcare Prices, Child Care Aware of America, and state market-rate surveys (figures roughly 2022-2024). They are provided for planning purposes only and vary by county, program, and provider type. Prices change frequently — always verify the current cost with local providers and your state's child care agency before setting tuition. TotReady provides information and document templates, not financial or legal advice.