Daycare Revenue Calculator

1. Enter your licensed capacity and average monthly tuition.
2. Set your occupancy rate, how full you run on average.
3. Enter months open, and optionally your monthly expenses.
4. Read your annual revenue, average children enrolled, and monthly revenue.

Here is what each result means:

A daycare revenue model turns three numbers into an income estimate: how many children you are licensed for, what they pay, and how full you actually run. Licensing sets your capacity by age ratios and space, but few centers stay full all year, so occupancy is the number that makes the estimate realistic.

Revenue is only half the business. Staff, rent and food take a large share, so a strong revenue figure can still leave a thin profit. Adding your monthly expenses turns the revenue estimate into a net result you can plan around.

It applies your occupancy to capacity for enrolled children, multiplies by tuition for monthly revenue, then by months for the year.

1. Multiply capacity by the occupancy rate for average enrollment.
2. Multiply by monthly tuition for monthly revenue.
3. Multiply by months open, then subtract expenses for net profit.

For the general margin math behind any business, the profit calculator works alongside this tool.

Suppose a center is licensed for 40 children, charges $900 a month, runs 90% full for 12 months, with $22,000 monthly expenses.

Calculation: occupancy gives about 36 children, who pay $900 each, for $32,400 a month and $388,800 a year. After $22,000 monthly expenses, net profit is about $10,400 a month, or near $124,800 a year.

Capacity sets the ceiling, but occupancy sets the income. The same center looks very different when it is full versus half empty.

Filling the last few spots is high-value, since staff and rent are largely fixed. Small occupancy gains often drop almost straight to profit.

Occupancy Rate

The biggest lever after capacity. Waitlists, retention and marketing all move it, and each point of occupancy adds revenue.

Tuition and Age Mix

Infant care usually costs more due to tighter ratios. A center weighted toward infants earns more per spot but needs more staff.

Capacity and Ratios

Licensing ratios and room space cap how many children you can enroll, especially for the youngest ages.

Staff Is the Biggest Cost

Payroll often takes half or more of revenue, driven by required child-to-staff ratios. Strong revenue does not guarantee strong profit.

Fixed vs Variable Costs

Rent and core staff are largely fixed, so filling more spots adds revenue with little extra cost, lifting margin.

Subsidies and Fees

Government subsidies, registration fees and late-pickup charges change real income. Fold them into tuition or expenses for accuracy.

Planning or Pricing

Test how tuition and occupancy targets shape your revenue before you set rates.

Writing a Business Plan

Produce revenue and net figures a lender or partner will expect to see.

Modeling a Ramp-up

Lower the occupancy for the early months to see how a new center grows into profit.

1. Assuming You Run Full

Few centers stay at 100 percent. Use a realistic occupancy, and a lower one for a new center.

2. One Tuition for All Ages

Infant and toddler care usually cost more. A blended average is fine, but do not undercount infant-heavy rooms.

3. Ignoring Staffing Ratios

Required ratios drive both capacity and cost. More infants means more staff, not just more revenue.

4. Skipping Expenses

Revenue is not profit. Enter monthly expenses to see what the business actually keeps.

5. Forgetting Seasonality

Summers and enrollment cycles shift occupancy. Plan for the low months, not just the average.

The model is exact for your inputs, but childcare economics have moving parts a single average cannot hold.

Multiply your licensed capacity by your occupancy rate for average enrollment, then by monthly tuition for monthly revenue, then by months open for the year. A 40-spot center at $900 running 90 percent full earns about $32,400 a month.

Established centers often run 85 to 95 percent full, while new ones start lower and ramp up. Use a realistic figure, and a conservative one for the early months of a new center.

It can be, but margins are often thin because staffing ratios drive high labor costs. Revenue can look strong while net profit is modest, so always model expenses too.

Payroll commonly takes half or more of revenue, driven by required child-to-staff ratios, especially for infants. It is usually the largest single cost.

Usually yes. Infant care needs tighter ratios and more staff, so it costs more. A blended average works for a quick estimate, but a full plan should price age groups separately.

Licensing sets capacity by child-to-staff ratios for each age group and by room space. The youngest ages have the strictest ratios, which limits how many you can enroll.

Staff wages, rent or mortgage, food, supplies, insurance, utilities and licensing costs. Enter a monthly total to turn the revenue estimate into a net profit figure.

Not separately. If you receive government subsidies or charge extra fees, fold them into your average tuition or your expenses so the result stays accurate.

No. The calculation runs in your browser and nothing you enter is stored or sent anywhere, unless you choose Save, which keeps the result only on this device.

• Child care (Wikipedia).
• How to value a business by revenue (Investopedia).
• Working with percentages (Maths Is Fun).