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Home » Industries » Preschools and Early Learning Centers: Industry Data and Startup Projections (2026)

Preschools and Early Learning Centers: Industry Data and Startup Projections (2026)

November 1, 2026

Market size
About 555,100 preschool teachers (2024), 63% in child daycare services
Recent growth
Preschool teacher jobs projected +4% from 2024 to 2034
Jobs and pay
Preschool teachers median $37,120; childcare workers $32,050 (May 2024)
Typical startup cost
Low for home-based; high for centers
Licenses and permits
State childcare licensing; ratios; background checks; health and safety rules
Best for
Educators and operators committed to safety, quality and families

Figures as of October 2026. Sources are listed at the end of this page.

Families need safe, enriching early learning, and preschools prepare children for kindergarten while letting parents work. The Bureau of Labor Statistics counted about 555,100 preschool teachers in 2024, with a median wage of $37,120 in May 2024 and 4% projected growth; 63% worked in child daycare services. Childcare workers earned a median of $32,050.

Preschool businesses range from licensed home-based programs to centers with several classrooms and part-day enrichment programs. Licensing, staff-to-child ratios and teacher pay shape every model.

Preschools and early learning centers: business models compared

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The workforce

Occupation Jobs (2024) Median pay (May 2024) Projected growth, 2024 to 2034
Preschool teachers 555,100 $37,120 +4%
Childcare workers n/a $32,050 n/a

Source: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook and Occupational Employment and Wage Statistics.

Market data

Measure Value
Share of preschool teachers working in child daycare services (2024) 63%

Business models compared

The figures below are illustrative months from our research, not industry averages. They show how revenue and costs typically fit together; your market, prices and costs will differ.

Business model Startup costs Example monthly revenue Costs Profit before owner pay Margin
Home-based preschool (licensed) Low: home setup, licensing, supplies, insurance $9,000 $3,260 $5,740 64%
Preschool center (4 classrooms) High: facility, build-out, licensing, staff $80,000 $70,600 $9,400 12%
Part-day enrichment program Moderate: leased classroom, materials, staff $20,000 $14,600 $5,400 27%

Fixed and variable costs

For projections, the most useful split is between variable costs, which rise and fall with sales (materials, supplies, hourly labor, fees), and fixed costs, which you pay every month regardless (rent, salaried staff, insurance, loan payments).

Business model Variable costs (% of revenue) Fixed costs per month What it means
Home-based preschool (licensed) 8.9% $2,460 Mostly fixed: needs steady volume to cover overhead
Preschool center (4 classrooms) 6.5% $65,400 Mostly fixed: needs steady volume to cover overhead
Part-day enrichment program 6.0% $13,400 Mostly fixed: needs steady volume to cover overhead

What the numbers say

Teacher wages dominate costs because ratios set the minimum staff for every classroom.

Enrollment decides profit: each open seat costs almost as much to staff as a full one.

Home-based programs keep overhead low but serve fewer children.

The three models in brief

Home-based preschool. A licensed program in the provider’s home with a small group. See childcare data.

Preschool center. Several classrooms, a director and full-day or part-day programs.

Part-day enrichment program. Play-based learning, arts or language programs a few mornings a week. See tutoring and education data.

Cost structure: preschool center (4 classrooms)

Each cost as a share of the example month’s revenue ($80,000):

Cost Monthly amount Share of revenue Type
Teacher and assistant wages $40,000 50.0% Fixed
Rent $9,000 11.2% Fixed
Payroll taxes and benefits $6,500 8.1% Fixed
Director $5,500 6.9% Fixed
Food and supplies $4,000 5.0% Variable
Utilities $1,800 2.2% Fixed
Card and tuition processing $1,200 1.5% Variable
Insurance $1,200 1.5% Fixed
Marketing $800 1.0% Fixed
Curriculum and software $600 0.8% Fixed
Profit before owner pay $9,400 12%

A first-year projection: preschool center (4 classrooms)

New businesses rarely start at full speed. This projection assumes revenue ramps from 35% of the example month in month 1 to 100% by month 12, variable costs move with revenue, and fixed costs stay the same every month. It’s a planning illustration, not a forecast.

Month Revenue Variable costs Fixed costs Profit Cumulative
1 $28,000 $1,820 $65,400 -$39,220 -$39,220
2 $36,000 $2,340 $65,400 -$31,740 -$70,960
3 $44,000 $2,860 $65,400 -$24,260 -$95,220
4 $49,600 $3,224 $65,400 -$19,024 -$114,244
5 $56,000 $3,640 $65,400 -$13,040 -$127,284
6 $60,800 $3,952 $65,400 -$8,552 -$135,836
7 $65,600 $4,264 $65,400 -$4,064 -$139,900
8 $69,600 $4,524 $65,400 -$324 -$140,224
9 $72,800 $4,732 $65,400 $2,668 -$137,556
10 $76,000 $4,940 $65,400 $5,660 -$131,896
11 $78,400 $5,096 $65,400 $7,904 -$123,992
12 $80,000 $5,200 $65,400 $9,400 -$114,592

Year one: revenue $716,800, profit before owner pay -$114,592. The first profitable month is month 9. Cumulative results bottom out at -$140,224, which is the minimum cash cushion this plan would need, before any startup costs.

Teachers, a director and rent start before classrooms fill, so this center illustration turns profitable in month 9, with a cumulative low of about $140,200, before facility build-out.

How preschools earn

  • Tuition by week or month.
  • Registration and supply fees.
  • Childcare subsidies for eligible families.
  • Before and after care.
  • Summer programs.

Ratios set your costs

State staff-to-child ratios and group sizes determine how many teachers each classroom needs. Plan enrollment by classroom and age group to keep ratios efficient.

Licensing and safety

Licensing covers facilities, staff qualifications, ratios, health practices, emergency plans and inspections. Build safety into every routine and keep records ready for inspections.

A startup checklist

  • Contact your state licensing agency early.
  • Plan staffing to meet ratios and qualifications.
  • Run background checks for every staff member.
  • Choose curriculum and assessment tools.
  • Set tuition from real costs and local market rates.

Subsidies and funding

Childcare subsidies, state pre-K programs and food programs can support enrollment and revenue. Each has its own requirements and paperwork.

Where the opportunities are

  • Childcare deserts with few options.
  • Employer partnerships for workforce childcare.
  • Bilingual and specialty programs.
  • Before and after care.
  • Summer camps.

Key terms

Term Meaning
Ratio Number of children per teacher
Group size Maximum children in one group
Enrollment rate Share of available seats filled
License-exempt Programs not required to be licensed under state rules

Hiring and keeping teachers

Low pay drives turnover across early education. Fair wages, benefits where possible, training and supportive leadership keep teachers, and consistent teachers keep families.

Key numbers to track

Track enrollment by classroom, waitlist, staff turnover, tuition collections, labor cost percentage and inspection results.

Common mistakes

  • Opening before licensing is secure.
  • Underpricing tuition.
  • Poor ratio planning.
  • High teacher turnover.
  • Weak collection policies.

Marketing a preschool

Tours, reviews, Google Business Profile, community events and parent referrals fill classrooms. See childcare data.

Parent communication

Daily updates, photos and conferences build trust and retention. A parent app that shares meals, naps, activities and milestones keeps families connected and reassured throughout the day.

Curriculum and approach

Play-based, academic, Montessori-inspired and other approaches attract different families. Choose one you can deliver well.

Health and nutrition

Health policies, allergies, medication and meal programs need clear procedures and documentation.

Staff development

Ongoing training in child development, health and safety, curriculum and positive guidance improves quality and is often required for license renewal. Career paths from assistant to lead teacher help retain good staff.

Facilities

Child-safe layouts, outdoor space, restrooms and secure entry are key. Many centers lease and renovate former schools or offices.

Enrollment and waitlists

Full classrooms make a preschool profitable. Tours, open houses and waitlists help fill seats before each school year, and sibling discounts and flexible schedules can attract families. Track enrollment weekly and plan staffing to match.

The director’s role

A strong director manages licensing, staff, curriculum, parent relationships and finances. Many owners serve as director at first; hiring a qualified director frees the owner to grow or open additional locations.

Emergency preparedness

Fire drills, evacuation plans, lockdown procedures, first aid training and emergency contacts are required by licensing and reassure families.

Tuition policies

Clear enrollment agreements cover tuition, late fees, absences and withdrawal notice.

Test these numbers with your own plan

Open this industry in our free Business Idea Reality Check to start from any model above, change prices, costs, startup budget and your own pay, and see your break-even month, the cash you’d need, three scenarios and how new businesses in this sector survive in your state.

  1. Start with the closest model and its cost structure.
  2. Replace every price and cost with local quotes.
  3. Estimate your ramp: how fast customers will realistically come in year one.
  4. Map cash month by month with the free Cash & Payroll Planner.
  5. Build the full plan in the free Business Planner.

About this data

Workforce figures come from the U.S. Bureau of Labor Statistics (Occupational Outlook Handbook and Occupational Employment and Wage Statistics, May 2024 wages and the 2024 to 2034 projections, unless noted). Market figures cite their sources above. Business model figures are illustrative months built from typical prices and costs to show how revenue, fixed costs and variable costs fit together; they are not industry averages or guarantees. We review these profiles when new government data is released, at least once a year, and the same figures power the Business Idea Reality Check.

Licensing and rules

States license childcare and preschool programs, setting staff-to-child ratios, group sizes, teacher qualifications, health and safety rules and inspections; comprehensive background checks are required for staff, and programs receiving federal childcare subsidies must meet federal background check requirements; some programs operating only part-day or in schools may be license-exempt under state rules; food programs, fire codes and building rules apply. Requirements change; confirm with your state and local agencies before you start.

Frequently asked questions

Do preschools need a license?
Most states require childcare licensing, with some exemptions for part-day or school-based programs.

What do preschool teachers earn?
BLS reported a median of $37,120 in May 2024.

What are staff-to-child ratios?
State rules setting the number of children per teacher by age.

Can I run a preschool from home?
Many states license home-based programs; check zoning and licensing rules.

How do preschools set tuition?
From real costs, ratios and local market rates.

Do preschool staff need background checks?
Yes. Comprehensive background checks are required.

How long does it take to fill a new preschool?
Often several months to a year, depending on demand, location and marketing; tours and waitlists help.

Can a preschool accept childcare subsidies?
Many do; programs must meet state requirements to participate.

What qualifications do preschool teachers need?
Requirements vary by state and program; many require early childhood credentials or degrees.

How can I test these numbers?
Open preschools in the Business Idea Reality Check and enter your own tuition and costs.

Share this industry data

Keep learning

  • Childcare industry data
  • Tutoring and education data
  • Music lessons industry data
  • Business Idea Reality Check

Sources

  1. U.S. Bureau of Labor Statistics, Preschool teachers
  2. U.S. Bureau of Labor Statistics, Childcare workers

Last reviewed November 1, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.

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