Running a childcare business takes more than just a love for working with young children—it also requires smart financial planning. Whether you’re just starting out or have been in the industry for years, keeping an eye on the right financial numbers is key to staying profitable, running smoothly, and building a business that lasts.
When you truly understand your finances, you’re in a better position to make smart choices, secure funding if needed, and grow with confidence.
In this article, we’ll walk you through the most important financial metrics every childcare owner should keep track of. These numbers will help you get a clear sense of your center’s financial health and guide you in making strong, strategic decisions.
This is one of the most fundamental metrics for any childcare provider. Revenue per child tells you how much income each enrolled child generates on average.
Example
$224,000 total revenue collected, $19,000 Registration Fees, $5,000 uniform sales, $9,000 Government Stipend, Total Number of Children 151:
$224,000 – $19 – $5 = $200,000 / 151 = $1,324 Revenue Per Child
Your occupancy rate tells you how full your center is compared to the number of spots you’re licensed to fill. Keeping this number high is one of the best ways to boost your revenue.
Childcare centers must adhere to strict staff-to-child ratios for safety and compliance. However, staffing is also your largest expense, often accounting for 50–60% of total revenue.
Same Example As Above, Assume $101,000 Teacher & Housekeeping, $6,250 Director, $107,250 / $200,000 = 53.6%
MRR gives you a snapshot of predictable, recurring income. In childcare, this typically includes tuition and ongoing program fees.
Example
$224,000 total revenue collected, $19,000 Registration Fees, $5,000 uniform sales, $9,000 Government Stipend (assuming this is for services provided), Total Number of Children 151:
$224,000 – $19 – $5 = $200,000 MRR
This metric shows how quickly you’re collecting payments from families. Long collection times can strain your cash flow.
Here’s how to use it to guide your business strategy:
Profit margin reveals how much of your revenue becomes profit after covering all expenses. It’s a strong indicator of overall financial health.
This measures how much it costs you to care for and educate each child. It includes all expenses—staff, food, supplies, utilities, etc.
While not a static metric, forecasting your cash flow helps you anticipate upcoming shortfalls or surpluses. It’s vital for planning and maintaining financial stability.
Understanding how quickly your enrollment is growing—or declining—helps you spot early signs of trouble or success.
Knowing how much it costs to gain a new family helps you assess your marketing ROI.
Keeping track of the right financial numbers is a big part of running a childcare business that’s not only profitable but also built to last—and aligned with your mission. While these figures might feel a bit overwhelming at first, the good news is that with a simple dashboard or childcare-focused software, they’re much easier to manage than you might think.
Financial know-how isn’t just for accountants—it’s a vital part of being a strong leader. When you understand your numbers and stay on top of them, you can make smarter choices, offer better care, and set your center up for long-term success.
At Blanco CPA + Advisors, we make tracking your key financial metrics simple, accurate, and stress-free. Our all-in-one financial management platform is designed specifically for childcare providers—giving you real-time insights into revenue, expenses, enrollment trends, and more. Let us help you eliminate guesswork, improve profitability, and grow with confidence.
