How Much Does It Cost to Start a Preschool?
National Average
Low
$50,000
Medium
$150,000
High
$400,000
An early childhood education program for children ages 3-5 preparing them for kindergarten. Requires certified teachers and a state-approved curriculum.
Time to Launch
6-12 months
Profit Margins
10-20%
Break-Even Timeline
18-30 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Preschool in Nationally
Budget:
$60,000
$10,000
$15,000
$5,000
$15,000
$7,000
$4,000
$30,000
Options
Employees:
Startup Costs
$146,000
Monthly Costs
$20,000
First Year Total
$386,000
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Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $38,500 | $115,500 | $308,000 | $50 | 7.0% |
| West Virginia | $38,500 | $115,500 | $308,000 | $100 | 6.0% |
| Oklahoma | $40,000 | $120,000 | $320,000 | $100 | 4.5% |
| Alabama | $40,500 | $121,500 | $324,000 | $200 | 4.0% |
| Arkansas | $40,500 | $121,500 | $324,000 | $45 | 6.5% |
| North Dakota | $41,000 | $123,000 | $328,000 | $135 | 5.0% |
| Iowa | $41,500 | $124,500 | $332,000 | $50 | 6.0% |
| Kansas | $41,500 | $124,500 | $332,000 | $160 | 6.5% |
| Missouri | $41,500 | $124,500 | $332,000 | $50 | 4.2% |
| South Dakota | $41,500 | $124,500 | $332,000 | $150 | 4.2% |
| Kentucky | $42,000 | $126,000 | $336,000 | $40 | 6.0% |
| Louisiana | $42,000 | $126,000 | $336,000 | $100 | 5.0% |
| Wyoming | $42,000 | $126,000 | $336,000 | $100 | 4.0% |
| Nebraska | $42,500 | $127,500 | $340,000 | $105 | 5.5% |
| Indiana | $43,000 | $129,000 | $344,000 | $95 | 7.0% |
| Michigan | $44,000 | $132,000 | $352,000 | $50 | 6.0% |
| Ohio | $44,000 | $132,000 | $352,000 | $99 | 5.8% |
| New Mexico | $45,000 | $135,000 | $360,000 | $50 | 4.9% |
| South Carolina | $45,000 | $135,000 | $360,000 | $110 | 6.0% |
| Wisconsin | $45,500 | $136,500 | $364,000 | $130 | 5.0% |
| Tennessee | $46,000 | $138,000 | $368,000 | $300 | 7.0% |
| Texas | $46,000 | $138,000 | $368,000 | $300 | 6.3% |
| Georgia | $47,000 | $141,000 | $376,000 | $100 | 4.0% |
| Minnesota | $47,000 | $141,000 | $376,000 | $155 | 6.9% |
| Illinois | $47,500 | $142,500 | $380,000 | $150 | 6.3% |
| Idaho | $48,000 | $144,000 | $384,000 | $100 | 6.0% |
| North Carolina | $48,000 | $144,000 | $384,000 | $125 | 4.8% |
| Pennsylvania | $48,000 | $144,000 | $384,000 | $125 | 6.0% |
| Montana | $48,500 | $145,500 | $388,000 | $35 | 0.0% |
| Utah | $50,000 | $150,000 | $400,000 | $54 | 6.1% |
| Delaware | $52,000 | $156,000 | $416,000 | $110 | 0.0% |
| Nevada | $52,500 | $157,500 | $420,000 | $425 | 6.8% |
| Virginia | $53,500 | $160,500 | $428,000 | $100 | 5.3% |
| Vermont | $54,500 | $163,500 | $436,000 | $125 | 6.0% |
| Arizona | $55,000 | $165,000 | $440,000 | $50 | 5.6% |
| Colorado | $55,000 | $165,000 | $440,000 | $50 | 2.9% |
| Florida | $56,000 | $168,000 | $448,000 | $125 | 6.0% |
| Oregon | $56,000 | $168,000 | $448,000 | $100 | 0.0% |
| Rhode Island | $56,000 | $168,000 | $448,000 | $150 | 7.0% |
| Maine | $57,000 | $171,000 | $456,000 | $175 | 5.5% |
| New Hampshire | $58,500 | $175,500 | $468,000 | $102 | 0.0% |
| Washington | $59,000 | $177,000 | $472,000 | $200 | 6.5% |
| Connecticut | $59,500 | $178,500 | $476,000 | $120 | 6.3% |
| Maryland | $60,500 | $181,500 | $484,000 | $100 | 6.0% |
| New Jersey | $62,500 | $187,500 | $500,000 | $125 | 6.6% |
| Alaska | $63,500 | $190,500 | $508,000 | $250 | 0.0% |
| New York | $69,500 | $208,500 | $556,000 | $200 | 4.0% |
| California | $76,000 | $228,000 | $608,000 | $70 | 7.3% |
| Massachusetts | $77,000 | $231,000 | $616,000 | $500 | 6.3% |
| Hawaii | $96,500 | $289,500 | $772,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$115,500
- West Virginia$115,500
- Oklahoma$120,000
- Alabama$121,500
- Arkansas$121,500
5 Most Expensive States
- Hawaii$289,500
- Massachusetts$231,000
- California$228,000
- New York$208,500
- Alaska$190,500
Frequently Asked Questions
Starting a preschool spans a wide range. A small preschool using shared church or community center space can launch in the high five to low six figures. A dedicated preschool facility for several dozen students with its own space and outdoor area requires meaningfully more — well into the mid-six figures. Use the calculator on this page to model your specific scenario.
Most states require lead preschool teachers to have an associate's or bachelor's degree in early childhood education, plus a state teaching certificate or Child Development Associate (CDA) credential. Requirements vary by state. Aides typically need 18+ hours of early childhood education coursework.
Private preschool tuition varies materially by location, hours, and program quality. NAEYC-accredited programs in affluent areas command premium monthly tuition. Part-day programs (a few hours, a few days per week) are priced meaningfully lower than full-day programs.
Franchises like The Learning Experience, Goddard School, and Kiddie Academy provide curriculum, training, and brand recognition at the cost of substantial six-figure franchise fees plus ongoing royalties as a percentage of revenue. Independent programs offer curriculum flexibility and no royalties, but require more development time.
A multi-classroom preschool at standard ratio caps grosses meaningful annual tuition revenue at full enrollment. After teacher salaries (the bulk of expense), rent, and overhead, low-double-digit percentage margins require maintaining high enrollment. The key is maintaining a waitlist to fill departing students immediately.
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