How Much to Charge for Home Daycare: A Provider's Pricing Guide
Set your rate too low and you burn out within two years; set it blind and you may price out your own neighborhood. Here are the three methods experienced family child care providers use — and the hybrid that combines them.
Method 1: Market rate (what others charge)
Check licensed homes near you and your state's most recent market-rate survey (published by your child care resource & referral agency). This tells you what parents in your area already pay — roughly $150–$300 per week in most of the US for family child care, more for infants and in high-cost metros. Market rate alone is dangerous: it says nothing about your costs or the pay you need.
Method 2: Cost-based rate (what you must charge)
Add your monthly business costs to the monthly pay you need, then divide by children and weeks open. That is your floor. Our Tuition Rate Calculator does this in seconds — try it with your real numbers before reading anyone else's price list.
Method 3: The hybrid (what most successful providers do)
- Calculate your cost-based floor.
- Find your local market range for your age groups.
- Price inside the market range but never below your floor. If the floor is above the market, cut costs, fill every licensed spot, or add paid value — longer hours, meals included, specialized infant care.
- Review every January and raise 3–5% with written notice. Small regular increases beat one big jump.
Pricing details that protect your income
- Charge for the spot, not attendance — tuition is due whether or not a child attends
- Infants cost more — lower ratios mean each infant spot must carry more of your costs
- Part-time = 60–75% of full-time, because the remaining hours rarely resell
- Put it all in the contract — rate, due day, late fees, paid holidays and closure days
- Join CACFP — food reimbursement effectively raises your rate without charging parents more (estimate it)
Frequently asked questions
What is the average home daycare rate in the US?
National surveys put average family child care tuition roughly in the $150–$300 per week range per child, with infant care at the top and high-cost metro areas well above it. Your state licensing agency and local child care resource & referral agency publish market-rate surveys for your county — use those, not national averages, for pricing decisions.
Should I match the cheapest provider near me?
No. Underpricing is the most common reason home daycares close: the rate has to cover food, supplies, insurance and your own pay, with something left for taxes and repairs. Parents choose home daycare for trust, stability and small groups — compete on those, and let the calculator show you the floor you cannot go below.
How do I tell parents about a rate increase?
In writing, 30–60 days ahead, briefly and confidently: state the new rate, the date, and one sentence about rising costs. Annual increases of 3–5% are normal across the industry. Providers who never raise rates end up closing — which disrupts families far more than a small increase.
Disclaimer: 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.