How Much Does It Cost to Start a Preschool?
Last updated: March 2026
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:
One-Time Costs
$146,000
Monthly Costs
$0
First Year Total
$146,000
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $42,500 | $127,500 | $340,000 | $50 | 7.0% |
| West Virginia | $43,000 | $129,000 | $344,000 | $100 | 6.0% |
| Alabama | $44,000 | $132,000 | $352,000 | $200 | 4.0% |
| Arkansas | $44,500 | $133,500 | $356,000 | $45 | 6.5% |
| Oklahoma | $44,500 | $133,500 | $356,000 | $100 | 4.5% |
| Kansas | $45,000 | $135,000 | $360,000 | $160 | 6.5% |
| Indiana | $45,500 | $136,500 | $364,000 | $95 | 7.0% |
| Iowa | $45,500 | $136,500 | $364,000 | $50 | 6.0% |
| Michigan | $45,500 | $136,500 | $364,000 | $50 | 6.0% |
| Nebraska | $45,500 | $136,500 | $364,000 | $105 | 5.5% |
| Ohio | $45,500 | $136,500 | $364,000 | $99 | 5.8% |
| Kentucky | $46,000 | $138,000 | $368,000 | $40 | 6.0% |
| Louisiana | $46,000 | $138,000 | $368,000 | $100 | 4.5% |
| Missouri | $46,000 | $138,000 | $368,000 | $50 | 4.2% |
| 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% |
| Illinois | $47,500 | $142,500 | $380,000 | $150 | 6.3% |
| New Mexico | $47,500 | $142,500 | $380,000 | $50 | 5.1% |
| Wisconsin | $47,500 | $142,500 | $380,000 | $130 | 5.0% |
| North Carolina | $48,000 | $144,000 | $384,000 | $125 | 4.8% |
| South Carolina | $48,000 | $144,000 | $384,000 | $110 | 6.0% |
| South Dakota | $48,500 | $145,500 | $388,000 | $150 | 4.5% |
| Minnesota | $49,000 | $147,000 | $392,000 | $155 | 6.9% |
| North Dakota | $49,500 | $148,500 | $396,000 | $135 | 5.0% |
| Wyoming | $50,000 | $150,000 | $400,000 | $100 | 4.0% |
| Nevada | $51,000 | $153,000 | $408,000 | $425 | 6.8% |
| Arizona | $51,500 | $154,500 | $412,000 | $50 | 5.6% |
| Florida | $51,500 | $154,500 | $412,000 | $125 | 6.0% |
| Idaho | $51,500 | $154,500 | $412,000 | $100 | 6.0% |
| Pennsylvania | $51,500 | $154,500 | $412,000 | $125 | 6.0% |
| Delaware | $52,000 | $156,000 | $416,000 | $110 | 0.0% |
| Virginia | $52,000 | $156,000 | $416,000 | $100 | 4.3% |
| Colorado | $53,000 | $159,000 | $424,000 | $50 | 2.9% |
| Montana | $53,000 | $159,000 | $424,000 | $70 | 0.0% |
| Utah | $53,000 | $159,000 | $424,000 | $54 | 4.8% |
| Oregon | $56,000 | $168,000 | $448,000 | $100 | 0.0% |
| Vermont | $56,000 | $168,000 | $448,000 | $125 | 6.0% |
| Maine | $57,000 | $171,000 | $456,000 | $175 | 5.5% |
| Rhode Island | $58,000 | $174,000 | $464,000 | $150 | 7.0% |
| 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% |
| New Jersey | $62,500 | $187,500 | $500,000 | $125 | 6.6% |
| Alaska | $63,500 | $190,500 | $508,000 | $250 | 0.0% |
| Maryland | $64,500 | $193,500 | $516,000 | $100 | 6.0% |
| California | $67,500 | $202,500 | $540,000 | $70 | 7.3% |
| New York | $69,500 | $208,500 | $556,000 | $200 | 4.0% |
| Massachusetts | $75,000 | $225,000 | $600,000 | $500 | 6.3% |
| Hawaii | $96,500 | $289,500 | $772,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$127,500
- West Virginia$129,000
- Alabama$132,000
- Arkansas$133,500
- Oklahoma$133,500
5 Most Expensive States
- Hawaii$289,500
- Massachusetts$225,000
- New York$208,500
- California$202,500
- Maryland$193,500
Frequently Asked Questions
Starting a preschool costs $50,000 to $400,000. A small preschool using shared church or community center space can launch for $50,000-$100,000. A dedicated preschool facility for 40-60 students with its own space and outdoor area typically costs $150,000-$350,000.
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 ranges from $500-$2,500/month depending on location, hours, and program quality. NAEYC-accredited programs in affluent areas charge $1,500-$2,500/month. Part-day programs (3 hours, 3 days/week) charge $300-$800/month. Full-day programs command premium rates.
Franchises like The Learning Experience, Goddard School, and Kiddie Academy provide curriculum, training, and brand recognition at the cost of $150,000-$500,000 franchise fees and ongoing royalties (7-10% of revenue). Independent programs offer curriculum flexibility and no royalties, but require more development time.
A 2-classroom preschool with 20 students per class at $1,000/month tuition grosses $480,000/year. After teacher salaries (3-4 teachers at $35,000-$50,000 each), rent, and overhead, net margins of 10-20% require 85%+ enrollment. The key is maintaining a waitlist to fill departing students immediately.
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