How Much Does It Cost to Open a Childcare Center?
- Callaway Childcare Construction
- Jun 16
- 5 min read
How much does it cost to open a childcare center? Most people looking to open a childcare center start with a number in mind. It might be a round figure, such as $100,000, or whatever a small business loan typically covers.
And sometimes, it’s just hope.
But here’s the truth: opening a licensed, fully functional childcare center comes with numerous costs. Some are obvious, and others are buried in zoning paperwork, inspection cycles, and compliance codes. And if you’re planning to open a childcare center in Texas or Florida, your local ordinances and climate conditions add another level of complexity.
At Callaway Childcare Construction, we’ve built and renovated dozens of early learning centers nationwide, so we know the surprises and patterns that can make or break your budget.
That’s why we created this guide. Our goal isn’t to scare you, but to give you real ranges, examples, and insights to build with confidence.
Let’s break down exactly how much it costs to open a childcare center, and what you can expect to earn once those doors open.
What Drives the Total Cost of Opening a Childcare Center?
There’s no universal price tag. The real difference-maker? What you plan for before you build.
How Much Does It Cost to Open a Childcare Center in Texas?
Texas has a statewide licensing framework, but city-specific zoning, permitting, and site requirements vary widely.
For example, a San Antonio build might require complex grading and stormwater planning, especially if your site is carved into limestone, like Nest San Antonio. In Dallas–Fort Worth, zoning rules around parking minimums and site access can shift your budget significantly. In Houston, Texas, a retail conversion could require major infrastructure upgrades before your layout even comes into play.
The lesson? A cheap lease in the wrong zoning district is never a deal.
Comparing Childcare Center Opening Costs by Build Type
Each project type affects childcare center opening costs:
Renovations of existing childcare spaces typically start at around $150,000, depending on the condition and compliance requirements.
Depending on infrastructure upgrades, conversations, retail or office buildings generally fall between $350,000 and $700,000.
Ground-up builds offer complete control and growth potential, but costs often exceed $1 million, especially for high-capacity centers.
Comparing Childcare Center Opening Costs by Build Type
Each project type affects your startup cost:
Renovations of existing childcare centers typically range from $60,000 to $350,000 or more, depending on the building’s age, licensing, and required safety upgrades.
Conversions of retail or office space typically range from $400,000 to $600,000, with larger projects scaling higher.
Ground-up construction may start at around $1 million, while franchise-scale facilities can exceed $5 million when all costs are factored in.
* Cost ranges reflect 2024–2025 estimates from RSMeans, CBRE, and state-level data sources. Excludes land acquisition, financing, and franchise fees unless noted.
Nest Arlington is an excellent example of how a smart renovation, paired with early planning, led to a fully licensed, design-forward facility, without breaking budget.
Capacity and Licensing Compliance
More kids mean more space and more regulatory boxes to check. That includes:
Minimum square footage per child (indoor and outdoor)
ADA-compliant restrooms
Staff-to-child ratios (affecting payroll and layout)
Supervision sightlines, classroom separation, and secure entry/exit points
If your build doesn’t meet HHSC (Texas) or DCF (Florida) licensing from day one, you’ll be revising (or redoing) work mid-project. That’s not just costly. It’s avoidable.
Childcare Center Startup Costs: A Line-by-Line Breakdown
Let’s walk through the main budget categories and what we’ve seen them cost in real-world builds.
Site Acquisition or Lease
It all starts here. Leasing may be faster, but purchasing land for a ground-up project can be a smarter long-term play—if the site is buildable. Zoning, accessibility, and utility access all impact viability. Before you commit to any property, make sure it's permitted for childcare use and aligns with your state’s licensing requirements.
You can check your state’s guidelines using this State-by-State Childcare Resource Map from Child Care Aware.
Design, Permitting, and Inspections
This phase includes architectural design, site plans, city approvals, and state licensing reviews. Permitting can take 60–120 days, even longer if your plans don’t meet local or childcare-specific codes.
Construction or Renovation
Costs vary based on square footage, material choices, and code compliance. Commercial HVAC, plumbing, fire suppression, and ADA retrofits can all increase scope, especially if missed in the initial plan.
Furniture, Fixtures, and Equipment
From classroom tables and child-height sinks to cribs, kitchen appliances, and front office tech—this category adds up fast. It’s often under-budgeted until the final inspection looms.
Outdoor Areas
Licensing requires fenced, fall-safe outdoor areas with space per child and age separation. A natural playscape, like we created at Nest San Antonio, can meet standards and inspire creativity, but requires early coordination.
Insurance and Admin
Consider general liability, workers' compensation, legal setup, and enrollment infrastructure. Without these in place, you can’t open, regardless of how ready your building is.
Pre-Opening Payroll and Monthly Operating Costs
Even before day one, you’ll be paying:
A director (required for licensing)
Admin or cleaning staff
Marketing and enrollment expenses
Utilities and tech systems
Expect to spend $15,000 to $40,000 per month in operating costs during your ramp-up period, depending on the center size.
Sources:
The 5 Budget Busters No One Warns You About
The Wrong Lease: Zoning issues can stall your entire project. We help clients review zoning maps and secure pre-approval letters before lease signing, so you're clear to build and not stuck renegotiating.
Fire Systems: A missing sprinkler system can cost $50K or more. Our pre-build site assessments flag fire system gaps early. That gives you leverage in lease negotiations or time to plan retrofits without panic.
ADA Compliance: Restroom layout, door widths, and ramps often trip up final inspections. We design with ADA in mind from day one, so there are no patchwork fixes or surprise rebuilds.
Stormwater Requirements: Early planning often overlooks flood control and runoff management. We coordinate with local engineers early in site planning to ensure drainage plans pass on the first review—no unexpected add-ons later.
Pre-Opening Delays: Ninety-plus days of rent and payroll with no revenue is normal, but painful. We map realistic construction timelines and help you budget for your ramp-up period, so you're staffed and stable the day your license is approved.
How Much Can You Make After Opening a Childcare Center?
Once your doors are open, your revenue depends on enrollment and tuition.
In Texas, monthly tuition ranges from:
$800–$1,200 for infants
$700–$1,000 for preschool-age
If your center serves 80–100 children at ~85% capacity, that could generate $70,000–$90,000 per month in gross revenue.
Operating expenses typically consume 60–70% of revenue, leaving well-run centers with 10–20% profit margins—or more, for owner-operators who directly manage their facilities.
That means a well-run center, especially if you understand childcare center costs and margins, can net $8,000–$15,000 per month once fully enrolled.
Sources:
Budgeting Is Just as Important as Building
You don’t have to guess your way through this. At Callaway Childcare Construction, we help clients across the nation understand how much it costs to open a childcare center and how to save at every step.
Whether you're working on your first facility or reworking a delayed project, our team brings the experience (and the licensing fluency) that keeps your timeline and budget intact.
Want help mapping out your build?
Let’s walk through your site, review your plan, and discuss your budget before any surprises arise.
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