“How much money do I need to start my home daycare?”
It’s one of the most common questions our home daycare specialists hear, and it’s an important one to think about.
Before you take the leap into a brand new career, you want to make sure you’re set up for success. Finding out how much money it’s going to cost to get up and running is one key piece of that.
But, the answer isn’t so simple. There are lots of costs to consider, and they can differ based on your personal situation and location. For example, if you have kids, you’ll probably spend less on books and toys since you’ll already have some.
“How much money do I need to start my home daycare?”
It’s one of the most common questions our home daycare specialists hear, and it’s an important one to think about.
Before you take the leap into a brand new career, you want to make sure you’re set up for success. Finding out how much money it’s going to cost to get up and running is one key piece of that.
But, the answer isn’t so simple. There are lots of costs to consider, and they can differ based on your personal situation and location. For example, if you have kids, you’ll probably spend less on books and toys since you’ll already have some.
Since you’re launching a licensed business, you also need to factor in costs like licensing and certification fees, if your state charges them. Plus, you’ll need to make sure your home is up to par for health and safety requirements. Sometimes this means you’ll have to make renovations before you can open your home daycare.
While everyone’s situation is a little bit different, we’ve found that most providers spend $2,000 to $3,000 to open their home daycare. This is a good starting point as you begin to plan for your new business.
Home Daycare Startup Costs: What to Expect
Opening a home daycare gives you an opportunity to earn what you deserve as a child care worker. While preschool teachers and child care center workers often make minimum wage, providers who run their own home daycare with NeighborSchools usually earn between $50,000 and $90,000 a year.
As you set out on this exciting career path, you’ll need to buy supplies and pay for certain requirements related to your daycare license. It’s an investment, but it’ll be well worth it once your daycare is open and thriving.
To help you create your budget and start saving, we’ll walk you through five categories of expenses:
1. Licensing and Certification
Estimated cost: $300
To open a home daycare, you need to get a child care license, and there are some fees associated with it.
For example, in Massachusetts, the Department of Early Childhood Education and Care charges a $100 application fee.
You’ll also need to get a background check and become certified in pediatric CPR. These will cost about $100 each.

2. Supplies, Furniture, and Toys
Estimated cost: $2600
Most of your budget will go to the supplies you need to set up your daycare space. This includes toys and games to keep kids engaged, supplies for health and safety, and furniture made for little ones.
Here’s a breakdown of what you can expect to buy.
Furniture: $650
Kids tables, chairs, high-chairs, cubbies, and a changing table
Toys: $400
Large structures for gross motor skills, smaller toys for fine motor skills, sensory items like sand, arts and crafts, and costumes or a play kitchen for pretend play
Safety supplies: $250
A first aid kit, smoke and CO2 detectors, exit signs, and gates
Meal-time needs: $100
Plates, cups, silverware, sippy cups, etc
Nap-time items: $400
Blankets, mats or cots, and cribs or pack ‘n’ plays
Household supplies: $400
Trash bags, paper towels, cleaning supplies, PPE
Office supplies: $10
Printer, paper, pens, clipboards, and a bulletin board
3. Marketing
Estimated cost: $100 (free for our community)
You should tell the world about your business before you even open your doors. This will help make sure you have kiddos enrolled from day one.
You can create flyers to post around your local community (coffee shop and library bulletin boards are great). Business cards can also help, making it easy for you to talk up your daycare and share contact information on the fly.
But most parents begin their search for child care online, so it’s also really important to do a little bit of digital marketing. You can create a free Facebook page or a simple website using a service like Wix or Weebly. Then share your page or website in local child care or parenting groups on Facebook. You can even advertise your business page on Facebook—plan to spend about $100 if you try this out.
If digital marketing isn’t your thing, don’t worry. You can keep it simple, and if you join the NeighborSchools community, our marketing experts will take care of it for you.
4. Home Repairs and Renovations
Estimated cost: $100-$5,000+
Whether you rent or own, your home might need some repairs before it can be transformed into a daycare. Things like a fresh coat of paint or a railing for your stairs are common. These small fixes don’t usually cost a fortune. Other items like custom fireplace covers or outdoor fencing can end up being a bit more expensive.
Some providers wonder if they should renovate their entire home before opening. We say, skip it! Large-scale renovations can get really expensive—sometimes up to $30,000. With a little imagination, you can create a beautiful and functional daycare space on a much smaller budget.
5. Hiring
Estimated cost: $75-$100
Some states, like New York and Pennsylvania, allow you to open a larger program (up to 10 kiddos) even when you’re just getting started. If you’re eligible for this, it’s a great idea. But you will need an assistant.
Assistants are required to be licensed, too, and sometimes there’s a fee for their license.
If you already know who your assistant will be—great! Some members of our community, like Dottie, use their home daycare as a family business and work with their children, siblings, or spouse.
But if you need to find an assistant, having a small budget for hiring is helpful. You can post your position on job boards like Indeed or Zip Recruiter, and then pay to sponsor your listing so more people will see it.
Of course, these hiring costs don’t include your assistant’s regular salary. The going rate will depend on your location, but we recommend budgeting around $15 an hour.

Determining the Cost of Opening a Home Daycare
Before you decide to open a home daycare, take these three steps:
- Look at how much money you have saved
- Learn how much you can earn as a home daycare provider
- Decide how much you’re willing to spend up front
With this information, you can create a budget and get started buying what you need. Keep track of your purchases as you go, so you can stay as close to your budget as possible.
Good news: There’s a perk to these purchases. Once you open your daycare, they’ll all count as business expenses. That means you can deduct them from your taxes.
Calculate Your Home Daycare Startup Costs
How much will it cost for you to start a home daycare? Find out using our free Home Daycare Startup Budget Worksheet.