Calculating Child Care Tuition Rates For Profit

When I ask child care owners, “how they established their tuition rates for each age group.” A typical response is, “We based our tuition rates on what other child care centers in the area charge.” Considering the average tuition rate in the market area is important. However, the calculation of tuition rates must include more than just matching or being close to what competitors are charging.

In this webinar workshop, we will cover several financial variables that must be considered when calculating tuition rates for each age group, program, and classroom. We’ll look at not only the minimum tuition rate required to break even. Additionally, what tuition rate is necessary to achieve the desired level of profits?

Yes, we will be talking “numbers and doing math” for the entire hour – but NO worries, we will go slow, and it will all make sense. Want to follow along? Sure – have a copy of your current annual or monthly child care business expenses, total building square footage, and classroom square footage – and you can quickly calculate tuition rates for your child care business during the workshop.

In just a few hours, you’ll be able to:

• Identify all costs associated with delivering care, including both direct and indirect costs.
• Understand breakeven analysis and calculate for each classroom or program.
• Determine an acceptable level of profits that will provide financial stability, sustainability, and allow for future capital improvement.