DaycareLedger

Center-based vs in-home daycare: cost comparison

By Editorial team · 2026-06-18

In short: In-home (family) daycare is usually cheaper than a center. Nationally, median family infant care is about $6,240 a year versus $7,987 for a center — roughly $1,700 less. The gap is widest in high-cost states like Massachusetts and California and narrow or reversed in a few others.

For most families, in-home (family) daycare is the cheaper option. Nationally, median family infant care is about $6,240 a year versus $7,987 for a center — a saving of roughly $1,700 a year.

Estimate — verify with the source. 2018 medians from the federal National Database of Childcare Prices.

National median: center vs in-home

Age groupCenter-based / yrIn-home (family) / yr
Infant (0–23 mo)$7,987$6,240
Preschool (3–5 yr)$6,500$5,720

The gap depends on your state

The center premium is far from uniform. In high-cost states it’s large; elsewhere it narrows.

StateCenter infant / yrFamily infant / yrCenter premium
Massachusetts$15,860$13,000+$2,860
California$15,058$9,566+$5,492
New York$11,429$8,295+$3,134
Texas$6,942$6,126+$816
Mississippi$3,526$3,054+$472

See the full center-vs-family price gap ranking for every state.

Center vs in-home: beyond price

FeatureCenter-basedIn-home (family)
SettingDedicated facilityProvider’s home
Group sizeLarger, by ageSmaller, mixed-age
HoursLonger, backup staffOne provider
CostHigherLower

The deeper trade-offs are in our center vs family childcare guide. To compare both for your state and child’s age, use the cost calculator.

Frequently asked questions

Is in-home daycare cheaper than a center?

Usually yes. Nationally, median family (in-home) infant care is about $6,240 a year versus $7,987 for a center — about $1,700 less. The savings are biggest in high-cost states and smaller in low-cost ones.

Why is family childcare cheaper?

Family childcare runs from a provider's home with lower overhead and smaller groups, so the price is typically lower than a dedicated center with multiple classrooms and staff.

Is a daycare center worth the extra cost?

It depends on your needs. Centers offer structured curricula, backup staffing and longer, more reliable hours; in-home care offers a smaller, home-like setting and flexibility. Quality varies by provider in both settings.

Last updated: 2026-06-18