Free calculator for daycare owners
How many children does a daycare need to break even?
Most daycare costs move by room. Rent, directors and the teachers each room requires are fixed until you open or close a room. Break-even is the enrollment that covers all of it.
Break-even point
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children a month to cover every cost
Profit at today's level
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per month, before owner pay
Cushion above break-even
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how many you could lose and still cover costs
The starting numbers are an example for a daycare. Replace them with yours.
The worked example
Each child brings in $1,150 a month and costs $450 to serve. That leaves $700 toward fixed costs of $45,000 a month. Divide one by the other and you need 65 children to break even. Every child past that adds $700 to profit.
Ways to lower break-even in a daycare
- Fill open spots in rooms that already have the teachers they need.
- Set tuition by age group to match the staff each room needs.
- Charge for late pickup and registration so they cover their full cost.
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