How Much Money Can You Make Running a Home Daycare in California?
A full small home daycare in California can bring in $3,000 to $7,000 per month in tuition — before expenses. Add CACFP meal reimbursements on top of that. After expenses, many providers net $2,000 to $5,000 per month working from their own home.
That range is wide because California is wide. Rates in San Francisco are not the same as rates in Fresno. And your income depends heavily on how many children you fill, what you charge, and how well you manage your costs.
This article gives you the real numbers — rates, expenses, CACFP income, and realistic net figures — so you can build your own projection before you open.
Quick answer
A licensed small home daycare in California with 6 full-time children can gross $3,000 to $7,500 per month in tuition, depending on your location and rates. CACFP food reimbursements add another $700 to $940 per month. Net income after expenses typically runs $2,000 to $5,000 per month.
What Providers Charge — Rates by Region
Weekly tuition rates vary significantly across California. Here is a realistic range by region:
| Region | Weekly rate per child (typical range) |
|---|---|
| San Francisco Bay Area | $300–$450 |
| Los Angeles / Orange County | $250–$375 |
| San Diego | $230–$350 |
| Sacramento area | $200–$300 |
| Inland Empire | $175–$275 |
| Central Valley | $150–$225 |
| Rural / less populated areas | $125–$200 |
These are market rates for licensed family daycare homes. Your actual rate depends on:
- Your community's cost of living
- The age of children (infants often command a premium)
- Your experience and any credentials or training you have
- What other providers in your area charge
- Your hours and what is included (meals, diapers, curriculum)
Tip before you set your rate: Call three to five other licensed providers in your zip code and ask what they charge. Most will tell you. This is the fastest way to understand your local market.
Gross Income at Different Capacity Levels
A small license allows up to 6 children (with specific conditions up to 8). Here is what gross monthly tuition looks like at different capacity levels and rate points:
| Children enrolled | $175/week rate | $250/week rate | $350/week rate |
|---|---|---|---|
| 3 children | $2,275/mo | $3,250/mo | $4,550/mo |
| 4 children | $3,033/mo | $4,333/mo | $6,067/mo |
| 5 children | $3,792/mo | $5,417/mo | $7,583/mo |
| 6 children | $4,550/mo | $6,500/mo | $9,100/mo |
(Monthly figures based on 52 weeks / 12 months = 4.33 weeks per month)
Most providers do not start at full capacity. Building to 4 or 5 enrolled children in your first year is a realistic and common trajectory.
CACFP — The Income Most Providers Do Not Know About
The Child and Adult Care Food Program (CACFP) is a federal meal reimbursement program. It pays you for every meal and snack you serve to enrolled children — at no cost to the families.
This is real income, and most home daycare providers qualify for it.
How much does CACFP pay?
For a full small home daycare (6 children, full day), CACFP reimbursements typically run $700 to $940 per month. The exact amount depends on your Tier (1 or 2), how many meals and snacks you serve per day, and the current federal reimbursement rates.
A large home daycare can receive more — up to $1,500 per month or higher at full capacity.
What CACFP requires:
- Serving meals that meet USDA nutrition guidelines
- Keeping daily attendance and meal records
- Submitting monthly claims through your sponsoring agency
The sponsoring agency does the paperwork. You do not apply directly to the federal government. You find a CACFP sponsoring agency in your area — they handle the claims and send you a check each month.
For a complete guide to enrolling, see CACFP for California Home Daycares.
Expenses — What Comes Out
Gross income is not take-home income. Here is what you will spend:
Food
If you are enrolled in CACFP, the program reimburses most of your food costs. If you are not enrolled, budget $200 to $500 per month for groceries depending on how many children you serve and how many meals you provide.
Supplies
Diapers (if you supply them), art supplies, cleaning supplies, wipes, paper towels — plan $75 to $200 per month, depending on the ages of children in your care.
Insurance
Liability insurance: $300 to $800 per year ($25 to $67 per month). Required or strongly recommended. Workers' comp: $50 to $150 per month if you have a paid helper.
License renewal
$73 per year (small) or $140 per year (large). Small cost, but budget for it.
Professional development
California requires licensed providers to complete ongoing training hours for renewal. Some training is free; some costs money. Budget $50 to $200 per year.
Equipment and setup (one-time)
Cots or mats, age-appropriate toys, outdoor equipment, safety items — plan $300 to $1,000 in one-time setup costs before you open. Most of this is a durable investment.
Taxes
Home daycare income is self-employment income. You pay self-employment tax (approximately 15.3%) plus federal and California state income tax on your net profit. Set aside 25 to 30 percent of net income for taxes. Working with a tax preparer who understands home business deductions will reduce what you owe. See Home Daycare Tax Deductions in California for what you can deduct.
Net Income Scenarios
Here are three realistic scenarios based on location and enrollment:
Scenario A — Inland California, 5 children, $185/week rate
| Item | Monthly amount |
|---|---|
| Tuition (5 × $185 × 4.33) | $4,005 |
| CACFP reimbursement | $700 |
| Gross income | $4,705 |
| Food | −$150 |
| Supplies | −$100 |
| Insurance | −$50 |
| Other | −$75 |
| Net before taxes | $4,330 |
Scenario B — Los Angeles area, 6 children, $275/week rate
| Item | Monthly amount |
|---|---|
| Tuition (6 × $275 × 4.33) | $7,145 |
| CACFP reimbursement | $850 |
| Gross income | $7,995 |
| Food | −$175 |
| Supplies | −$150 |
| Insurance | −$67 |
| Other | −$100 |
| Net before taxes | $7,503 |
Scenario C — Rural California, 4 children, $150/week rate
| Item | Monthly amount |
|---|---|
| Tuition (4 × $150 × 4.33) | $2,600 |
| CACFP reimbursement | $600 |
| Gross income | $3,200 |
| Food | −$125 |
| Supplies | −$75 |
| Insurance | −$42 |
| Other | −$50 |
| Net before taxes | $2,908 |
These are pre-tax figures. After self-employment and income taxes, take-home pay will be lower. A good rule of thumb: set aside 25 to 30 percent of net income for taxes.
Stay on top of your numbers after you open
The Monthly Plan gives you license renewal tracking, training hour logging, and direct access to guidance as you build your business.
What Affects Your Income the Most
Enrollment level. Every empty spot costs you money. Building to full capacity as quickly as possible is the most direct path to higher income. Referrals from satisfied parents are the fastest growth channel.
Your rate. Many first-time providers underprice out of uncertainty. Research local rates before you set yours. Once you are licensed and have a track record, you can raise rates with sufficient notice (30 days is standard practice).
CACFP enrollment. Providers who are not enrolled in CACFP are leaving $700 to $940 per month on the table. Enroll as soon as you open.
The ages you serve. Infants (under 2) require more intensive care and typically command higher rates — but they also count toward your infant cap (2 at a time for a small license). Older children are generally easier to care for in groups. Mix intentionally based on your capacity and comfort.
Hours. Most home daycares run 7 or 8 hours per day, five days a week. Extended hours or drop-in care can increase income, but also add complexity. Many providers charge a drop-in premium.
Large License Income Potential
A large license allows up to 12 children, but requires a licensed assistant to be present when you have more than 6. The income math:
- 12 children at $250/week = $13,000/month gross tuition
- CACFP at large capacity: $1,200 to $1,500/month
- Minus assistant wages ($1,500 to $2,500/month), workers' comp, and higher supply costs
Net income is higher than a small license, but the business is also more complex. Most providers build toward a large license after a year or two of running a small one successfully.
What to Do Next
- Research local rates. Call three to five providers in your zip code this week.
- Run your own numbers using the tables above. What does full capacity look like in your market?
- Look up CACFP. Find a sponsoring agency in your area and enroll as soon as you open. Do not leave that money sitting.
The Monthly Plan supports you after you open — license renewal dates, training hours, and guidance as you grow your business. See the Monthly Plan →
This article is for general information only. Rates and income vary significantly by location and individual circumstances. Tax information is general in nature; consult a qualified tax professional for advice specific to your situation. Daycare License California is not part of the California state government.