How Much Money Will I Make Running A Home Daycare?

How much money.jpg

Many people who are contemplating the option of opening up their own home daycare ask about a daycare providers income.  How much can you make?   Is it profitable?  Is it a steady income?  Will it be enough money for my situation?

Let’s take a look at each question:

How much can you make?

This depends on where you live, and therefore the limitations of how many children you are allowed, by law, to care for in your home without a license. For example, in Ontario Canada, you are allowed to care for up to five children under the age of ten who are not your own children.  So you might have five daycare children and one of your own for a total of six children.  Licensed childcare providers need to follow the rules and regulations of the Day Nurseries Act.  Five paying children at $45 a day would be $1125.00 a week.

Is it profitable?

Yes. It is a wonderful way to make a respectable income at home while contributing to the lives of young children. If you have children of your own it is a fantastic way to combine being an engaged and involved parent while also operating your own business. It also saves you paying someone else for childcare.

Is it a steady income?

No.  Daycare families will come and go.  People move, go on maternity leave, change school zones, etc.  If you realize this factor and create some safeguards it won’t affect your income as much.

Using a contract that includes four weeks notice and care paid in advance helps.  It is also beneficial to maintain a waiting list for upcoming clients.  Strong networking connections with other caregivers will often provide you with new clients when you have a spot opening up. Great advertising helps as well.  Good money management to cover any dry spells helps alleviate stress around losing a daycare client.  Fantastic daycare providers are always in high demand. If you provide high quality care, there will be families out there waiting for a spot.

Will it be enough money in my situation?

If you have a child or children currently and you are paying someone else for childcare then you have an idea what daily childcare costs.  Depending on your situation and your regular income, then home daycare might be more profitable or at least comparable for you.

A few factors to keep in mind while you crunch the numbers.

-Average daycare costs in your area  (phone five providers and ask them their rates)

-You will save on your own daycare costs if you currently have children in care.

-You can write off a portion of your home, car, and grocery bills.

-You will eliminate commuting costs.

-You will drastically decrease personal costs such as clothing purchases, dry cleaning, salon visits, etc.

-You will be eating lunch at home and therefore saving on daily restaurant and coffee shop expenses.

-You will have time to plan and prepare nutritious home cooked meals and therefore will decrease your reliance on fast food and expensive take-out meals.


If you have children of your own then you need to ask yourself,  “What is the value of spending my days with my own children?”    Your answer will guide your decision.


May you acquire the money you need to support the decision you desire!


  1. lindsay devitt says:

    I know this is the right decision for us. Every time I look at the life we have created I am so grateful. I want to enrich children’s lives by providing a nurturing, nourishing and natural environment to grow in.

    • HowToDaycare says:

      I agree Lindsay, it is a beautiful rich daily life when you have your own home daycare and it has nothing to do with the pay cheque.

  2. Indyana says:

    I truly agree with this article I have been a daycare provider for 6 years and it’s been the best. income is great although I have no kids , I love the experience and kids are a delightful little ones that make your day a special one.

    I will like to give a advice to any upcoming provider

    Reputation counts although everything said on this article is true , if you establish a great daycare it will always be full.

    I currently have a long waiting list and thank god am always full
    I cover all 3 shifts to maximum my earnings however, you guys can choose your hours.

    Well thanks and hope my advice help anyone interested

  3. Hello,

    I am a recently single mom of two young kids (one school aged) who lives in a 1200 square-foot two-bedroom apartment.

    I have always wanted to do home daycare, and as my life is changing I am wondering if this might be a good move for me?

    I currently spend $800 a month on childcare, and well over $400 a month and transportation to work.

    I am not sure if being in an apartment (albeit a large one) would be a hindrance or not?

    I am looking for some guidance, and any information or tips would help!

    Thank you

    • HowToDaycare says:

      Hello Lindsay,
      I do know of some single moms who have home daycares. They enjoy staying home with their kids and are able to support themselves. You would have to figure out the numbers to see if it would work in your situation. 1.How many clients could you accept according to your geographic regulations 2. What are the going rates in your area 3. Is your projected home daycare income (including your savings in childcare and transportation) enough to support yourself and your children. If yes, GO FOR IT!!! Is it more difficult to find clients when you live in an apartment? Yes, I hear it is. HOWEVER, I also know of several people who have very successful home daycare businesses from apartments. It might be a little more challenging but find clients in the beginning but this is not the case for everyone and it IS POSSIBLE. Finding clients is more about what you have to offer as a caregiver to your clients rather than the physical space. I have an online video course coming out in a few weeks geared to help brand new home daycare providers start their business. It will be on my home page when it’s ready to go. My blog has many posts about starting out and getting set up. Browse through the information on the drop down menu to a get you started. Email me directly if you have more questions. Good luck! Jana

  4. Interesting comments. I will keep a lookout for the video, as I am eager to learn more.

  5. In the state of California for much would I make watching 5 kids under the age of ,5?

    • HowToDaycare says:

      It would depend on how much you charged for an infant/toddler/Preschooler. Rates vary depending on your location in the state. Here is a great chart about ‘Child Care Rates according to Zip Code’ in the state of California. This will give you a ball park idea of what you could charge for watching five kids under the age of 5. Good luck! I hope it helps.

  6. Hi everyone i need some help i used to take care of a lil boy which i was only getting paid $10 a day there was alot of discomfort because this boy woould always beat up my boy either bitting him or hitting him even though he was younger than mine know the mom would almost never bring food to feed him which i had to feed him from my own pantry i my self got to kids one 6 yr old and a 3 yr old i get up early take my daughter to school pick her up and i live in albuquerque, new mexico now i got a family member which is asking if i could take care of her baby im undecided i dont want to say no but on the other side i want to yes but dont get ripped of like i did with my first experience what do you guys think please help? And how much should be good to charge her weekly ?? He is only 10 months

    • HowToDaycare says:

      I understand your concern. Taking care of other people’s children is a big job and you deserve to be fairly compensated for the task. I encourage you the check the rates online in your area for home daycares or even daycare centres. This will give you a ballpark idea of the going rate for a 10 month old. Here is one link I found, (notice it was from 2013 for a three year old). Write down a few conditions that you need followed before you agree to care for this child (such as providing food, diapers, change of clothes, pick-up time) and talk about these conditions with your family member before you say yes. Agree on the conditions together and agree on the rate. If it feels like a fair exchange then GO FOR IT! If not, you can always say No. From your email it sounds like you are on the right track thinking about your limits/boundaries, Good for you! I wish you the best luck in the future Jeanette.

  7. I would like to run a home daycare. I have 4 kids of my own (3 school age) how many children would I be able to care for besides my own?

    • HowToDaycare says:

      Hello Jenn, The regulations for home daycares vary quite a bit depending on where you live. This blog post will help you.
      It gives you links to each state and province’s childcare regulations if you live in the USA or Canada. Message me back if you can’t find your answer in your research, I will help you. Good luck, Jana

  8. Hello I am a military wife and I am looking into starting a in home daycare and later expanding into a building. I have over 10 yrs experience in child care and education. Will be going back to school in the fall to get my Master’s degree in early childhood. I have always wanted a child care business, now I have the opportunity and the funds to do so. I have done some research but want to make a plan of action on how to get from start to finish. (If that makes sense ) a check list of all needed to get me up and running. We are moving next summer so not sure yet where we will be located.

    • HowToDaycare says:

      Congratulations Ashley, it sounds like you have some big plans for your future, I’m happy and excited for you! A plan of action sounds like a very good idea especially since you are thinking of expanding into a building. Starting your home daycare off as a serious business will make the transition into a daycare centre smoother. I would suggest growing your waiting list as a home daycare so that once you take the next step into a building you will be able to fill your spots from the first day onwards. You will need to do some research into the home daycare vs. daycare centre regulations once you know where you will be located. Regulations vary depending on the state you live in. This blog post will help you with your research.
      There are a ton of points you can check off your list while you wait to find out your location. Creating a successful child care business involves several different areas such as your philosophy, your target market, your experience, your physical space, your resources, your program, your advertising, interviewing, referrals, how you present yourself (as the childcare provider and business owner), your contract, policies, hours, rates, and your ability to manage good parent communication. Going through each point and creating a plan of action is the perfect way to start your business off on the right foot! This will take some time but I assure you it will pay off in the long run. You already have excellent experience and knowledge in the field so your chances of finding and keeping clients is wonderful. My video course on How to Start A Home Daycare business would take you through that checklist from start to finish. Check it out and then please email me back and let me know when you open. I offer Skype calls to new home daycare providers in the first month of being open. I’m happy to support you in your new business venture and I wish you all the best! Jana

Leave a Comment