# How much does it cost to start a home daycare business?

ProfitDrawer's home daycare business guide gives an example budget of about $900 to $8,200. The biggest lines are cribs, cots, high chairs and small furniture ($300 to $2,000), outdoor play area fixes or fencing ($0 to $2,500), insurance for the first months ($200 to $900) and licensing fees, background checks and required training ($100 to $800). Your state's inspection list may add items. These are example ranges; your costs will differ.

**Example budget (your costs will differ):**

| Item | Low | High |
|---|---|---|
| Licensing fees, background checks and required training | $100 | $800 |
| Safety items (gates, outlet covers, smoke alarms, fire extinguisher, first aid kit) | $150 | $600 |
| Cribs, cots, high chairs, small tables and chairs | $300 | $2,000 |
| Toys, books and art supplies | $150 | $800 |
| Outdoor play area fixes or fencing | $0 | $2,500 |
| Insurance (first months) | $200 | $900 |
| Business registration | $0 | $300 |
| Marketing and simple website | $0 | $300 |
| **Total** | **$900** | **$8,200** |

Check your state's licensing rules first (see answer 122): they decide how many children you can care for and what your home needs, which drives most of these costs.

In the guide's worked example for 6 full-time children, a week costs $1,688: $1,375 of your pay (55 hours at $25), $168 of food, $60 of supplies, $45 of insurance and licensing, and $40 of utilities and wear. Adding 15% for taxes, sick days and empty spots gives $1,941.20, or $325 per child per week after rounding (see answer 141). Put your own numbers into the free startup cost calculator.

- Source: [How to Start a Home Daycare Business (ProfitDrawer guide)](https://profitdrawer.com/guides/how-to-start-a-home-daycare-business.html)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Start a business
- Canonical: https://profitdrawer.com/answers/how-much-does-it-cost-to-start-a-home-daycare-business.html
- Publisher: ProfitDrawer (https://profitdrawer.com)