Childcare Fee Policy & Rate-Setting Worksheet
What's inside
- Fee schedule template with rows for every age group and program type
- Additional fees section covering registration, late pickup, late payment, and returned payments
- Payment terms and auto-pay authorization language
- Rate-setting worksheet using cost analysis and market comparison methods
- Annual rate increase formula and minimum notice timeline
- Rate change notice letter template for family communication
- Best practices for communicating fee increases without losing enrollments
Downloaded by childcare directors across the US
TLDR
A fee policy template and rate-setting worksheet for childcare center directors — covers tuition rates by age group, late fees, registration fees, and the cost calculation approach. Directors who set rates based on costs rather than guesswork are more financially stable and less likely to find themselves covering the gap out of pocket.
How to Use This Template
This document has two parts: a fee policy template (customize and give to families) and a rate-setting worksheet (for internal use only). Complete the worksheet before finalizing your fee schedule. Update the worksheet annually before your rate review.
Part 1: [CENTER NAME] Fee Policy
Effective Date: [DATE] Supersedes all previous fee schedules dated prior to the effective date above.
Tuition Rate Schedule
Full-Time Weekly Rates
| Age Group / Classroom | Age Range | Weekly Rate |
|---|---|---|
| Infant | Birth – 12 months | $ ___________ |
| Young Toddler | 12 – 24 months | $ ___________ |
| Older Toddler | 24 – 36 months | $ ___________ |
| Preschool | 3 – 4 years | $ ___________ |
| Pre-K | 4 – 5 years | $ ___________ |
| Before/After School | 5 – 12 years | $ ___________ / day or $ ___________ / week |
Part-Time Rates
| Schedule | Rate |
|---|---|
| 3 days per week (specify days at enrollment) | $ ___________ / week |
| 2 days per week (specify days at enrollment) | $ ___________ / week |
| Drop-in care (subject to availability, must be registered) | $ ___________ / day |
Part-time slots are assigned at enrollment and may not be changed on a week-to-week basis. Part-time tuition does not decrease for days the child does not attend.
Monthly Billing Option
Families may elect monthly billing at the equivalent of 4.33 weeks per month.
Monthly Equivalent Rates:
| Age Group | Monthly Rate |
|---|---|
| Infant | $ ___________ |
| Young Toddler | $ ___________ |
| Older Toddler | $ ___________ |
| Preschool | $ ___________ |
| Pre-K | $ ___________ |
| Before/After School | $ ___________ |
Sibling Discount
Families with two or more children simultaneously enrolled in full-time care receive a [X]% discount applied to the younger child’s tuition. The discount applies only when both children are enrolled full-time and is removed if either child’s enrollment drops to part-time.
Childcare Fee Policy & Rate-Setting Worksheet
Fee policy template and rate-setting worksheet for childcare directors. Covers tuition by age group, late fees, registration, and cost calculation.
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Q&A
How should childcare centers set their tuition rates?
Childcare tuition should cover three cost categories: fixed costs (rent, insurance, administrative salaries, utilities), variable costs per child (food, supplies, classroom materials), and a target profit margin. Divide total monthly fixed costs by expected enrollment, add per-child variable costs, and add your margin. Then compare to local market rates. If your cost-based rate is above market, you have a cost structure problem to solve — cutting your rate to match market while running at a loss is not sustainable.
Q&A
How much should childcare centers charge for late pickup?
Late pickup fees should be high enough to actually deter late pickups — typically $5-$15 per minute depending on your market. A $1 per minute fee doesn't change behavior. The fee also needs to reflect the true cost: a staff member staying 30 minutes late may cost you $20-30 in overtime wages plus the disruption to their personal schedule. Many centers charge $1 per minute for the first 10 minutes, then escalate to $2-3 per minute for each additional minute.