You can set your prices for home daycare based on the amount of money you need to make. Different locations have different home daycare restrictions, so the number of children you can care for in your home will depend on those laws and on the space you have available. If you know you need to make $500 a week, for example, then you need to be able to charge enough per allowed child to meet that goal.

On the Other: Charge What the Market Will Bear

Find out what the prevailing rate is for daycare in your area by calling local centers. Their prices can give you a good idea what parents expect to pay for childcare. Charging rates that are within the normal limits ensures that you are able to compete with the other providers in your market, and may bring you more clients.

Bottom Line

You have to be able to meet your expenses, but if your prices are higher than the competition's, you risk losing customers. If you are unsure of what to charge, then following what seems to be the normal rate in your community is a good place to start. No matter which approach you choose, you can always adjust your rates as your home daycare business grows.

Source:

Small Business Administration

"How to Start and Run a Home Day-Care Business"; Carolyn Argyle; 1997

Resource:

Childcarestl.org: Starting a Home Daycare