Free calculator for daycare owners
How much can a daycare owner pay themselves?
A daycare owner's margin depends on how full each room is. What you can take depends on profit after teacher payroll, and that moves with enrollment.
The starting numbers are an example for a daycare. Replace them with yours.
Three rules for paying yourself from a daycare
- Base steady pay on average profit at normal enrollment.
- Check room changes and summer enrollment before any extra draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a daycare
Tuition in advance makes the bank balance look healthy. Part of that cash pays for care next week and next month. Base your pay on profit. The balance right after the tuition run overstates it.
The worked example
In the example, the business keeps $74,000. That covers $48,000 for two payrolls, $16,000 of monthly bills and $10,000 due soon. Steady pay comes to $6,400 a month. Anything above $74,000 in the bank is spare.
A common question
Can a daycare owner take tuition paid in advance?
Only the part earned for care already given. The rest pays for weeks you still owe. Count it out before any draw.
Know what is safe to take, every week
One Page CFO shows the cash above your safe line every Monday, from your QuickBooks, checked by a CFO.