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Read this guideHow Much Do Home Daycare Providers Make?
Home daycare income varies a lot from one provider to the next. Your pay depends on your rates, how many children you enroll, and how well you control your costs.
The short answer
There is no single salary for home daycare providers, because you are a business owner, not an employee. Your income is what is left after parents pay tuition and you pay your business costs. Many full-time providers with a full house earn a modest middle-class income. Others who are part full, or who charge low rates, earn much less.
Think of it in two parts. First comes your gross income, which is all the tuition you collect in a year. Then come your expenses, like food, supplies, and insurance. What remains is your profit, and that profit is your pay. When providers ask about income, profit is the number that matters.
A simple example
Say you care for 6 children and charge $200 per week for each child. Your gross income is $1,200 per week, or about $62,000 per year if you stay open all year. That sounds like a solid salary, but it is not your pay yet.
From that money you buy food, toys, craft supplies, and cleaning products. You pay for insurance, training, and a share of your home costs like power and water. If your costs take 30 to 40 percent, your profit might land around $37,000 to $43,000 before taxes. Self-employment tax comes out of that too, so plan for it.
Good to know: Gross income is not your paycheck. Always subtract real business costs before you judge your pay.
What makes some providers earn more
The biggest factor is enrollment. An empty spot pays nothing, but your rent or mortgage stays the same. Providers who keep every licensed spot filled almost always earn more than providers with higher rates and two empty spots.
Rates matter too. Infant care usually pays more per child because ratios are lower and demand is high. Your state and city matter as well. Care costs more in high-cost areas, and parents there expect higher rates. The national average price of child care was about $13,184 per year in 2025 for all types of care, but your local market may be well above or below that.
- Keeping every spot filled, all year
- Charging a fair rate for your area and age groups
- Offering infant care if your license allows it
- Joining the CACFP food program to cut food costs
- Keeping costs low without cutting quality
Costs that quietly eat your income
Food is the cost that surprises new providers most. Feeding six or more children three times a day adds up fast. The CACFP food program repays part of that cost for providers who join, and it can add up to real money each month.
Other common costs include liability insurance, licensing fees, training classes, toys and furniture, cleaning supplies, and the extra wear on your home. None of these is huge alone. Together they decide whether your business feels profitable or stressful. Track them from day one so nothing sneaks up on you at tax time.
Smart ways to raise your pay
First, review your rates once a year. Food and power prices rise, and your rates should rise a little too. A small yearly increase is normal, and most parents accept it when you give fair notice.
Second, fill gaps fast. Keep a waiting list, and tell families on it the moment a spot opens. Third, protect your income with a clear contract. Charge for the spot, not for attendance, so a sick day at home does not cut your pay. Paid holidays and a late fee policy also keep your income steady.
Try it free: use our Daycare Income Projection Calculator — it does this math for you in about a minute, right in your browser.
Common questions
Do home daycare providers get paid during holidays?
Only if your contract says so. Many providers include paid holidays and some paid vacation days in their parent contract. Parents agree to these terms when they enroll, so put them in writing before a child starts.
Is home daycare a good way to earn money?
It can be, if you treat it like a business. Providers who set fair rates, keep spots filled, join CACFP, and track expenses tend to do well. Providers who guess at rates and skip contracts often struggle, even when they work very hard.
How can I find out what providers near me earn?
Look at your state's child care market rate survey, which shows what care costs in your area. You can also check local provider groups online. Rates near you are a better guide than any national average.
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Read this guideDisclaimer: HomeDaycareTools.com provides free calculators and general information for planning purposes only. Nothing on this site is tax, legal or financial advice. Tax rules, CACFP rates and licensing rules change — confirm your figures with IRS Publication 587, your CACFP sponsoring organization, your state licensing agency, or a qualified tax professional before filing or signing anything.