Child Day Care Services Revenue Benchmarks
The average child day care services business in the United States generates $750K in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 61,477 child day care services businesses in the U.S., employing 875,114 workers with an average profit margin of 13.0%. The average employee in this industry earns $32K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Child Day Care Business Actually Do?
Licensed businesses providing daytime care for children from infancy through school age. Ranges from small in-home providers (5–10 children) to large center-based operations (100+ children). Regulated at the state level for ratios and safety.
Who buys: Working parents. Waitlists common in dense urban areas.
Average Revenue
$750K
per year
Profit Margin
13.0%
industry average
Revenue / Employee
$53K
per year
Total Businesses
61,477
in the US
Est. Owner Income
$98K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$32K
per year (BLS)
Market Saturation
18.5
firms per 100K people
How Much Do Child Day Care Services Charge?
Childcare is priced weekly by child age, with infants most expensive.
| Service | Typical range |
|---|---|
Infant (6 wk – 12 mo) | $225–500/week |
Toddler (12 mo – 3 yr) | $200–425/week |
Preschool (3–5 yr) | $175–375/week |
After-school care | $60–200/week |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete child day care business plan
A 12-section data-backed business plan for a child day care services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the child day care services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Medical supplies & pharma | $13 | $97K | Disposables, medications, lab reagents, implants, and other direct patient supplies. |
Wages & benefits | $50 | $375K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $42K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $2 | $14K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $125K | Malpractice insurance, billing services, equipment leasing, regulatory compliance. |
Net profit | $13 | $98K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.32%
openings/year
Closure Rate
7.34%
closings/year
Net Job Growth
+7.46%
annual
Businesses Closed
4,379
in 2023
Firm Count Trend
Should You Start a Child Day Care Business?
Startup Cost
$50K – $500K
Break-Even
34 months
5-Year Survival Rate
55.0%
Related Industries
Frequently Asked Questions
- What does a child day care services business do?
- Licensed businesses providing daytime care for children from infancy through school age. Ranges from small in-home providers (5–10 children) to large center-based operations (100+ children). Regulated at the state level for ratios and safety. Working parents. Waitlists common in dense urban areas.
- How much do child day care services charge?
- Childcare is priced weekly by child age, with infants most expensive. See the pricing table above for typical rates by service type.
- How much does the average child day care services make per year?
- The average child day care services business generates $750K in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $98K per year at a 13.0% profit margin.
- How many child day care services businesses are there in the US?
- There are 61,477 child day care services businesses operating in the United States, employing a total of 875,114 workers.
- How much does it cost to start a child day care services business?
- Startup costs for a child day care services business typically range from $50K to $500K, with a 5-year survival rate of 55.0%.
- What is the average salary in the child day care services industry?
- The average employee in the child day care services industry earns $32K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The child day care services industry is actively growing — adding jobs at a net rate of 7.5% per year. New establishments are opening faster than existing ones close (10.3% entry vs 7.3% exit), indicating healthy demand.
Approximately 68% of child day care services businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 4,379 firms in this industry closed permanently.
Employment & Wages
The average employee in the child day care services industry earns $31,747/year. This is below the national average of ~$65K — typical for this sector. With 78,107 establishments employing 954,796 people, the typical business has about 12 employees.
Industry Trend (2000–2023)
The child day care services industry has grown 23% since 2000 (from 47,783 to 58,834 firms).
See full historical statistics →Compare Child Day Care Services revenue with other industries: