How Much Does It Cost to Run an ECD Centre? Full Budget Breakdown

If you’ve ever looked at your bank balance at month-end and wondered how you’re still running at a loss despite full enrolment, you’re not imagining it. Running an ECD centre in South Africa is genuinely expensive relative to what most families can pay, and the numbers back that up. Here’s a real breakdown of where the money goes, and what to do about it.

The Big Picture: Why So Many Centres Run at a Loss

Research using the Department of Basic Education’s 2021 ECD Census found that fully registered centres typically spent around R58 per child per day, while highly compliant centres spent closer to R102 per child per day. The ECD subsidy covered far less, creating a funding gap that many centres still experience today. If you want to close part of that gap, read our guide on the ECD subsidy and how to apply.

Staff Costs: Your Biggest Line Item

Staff salaries and stipends typically account for 40-45% of monthly operating costs. The staffing ratios required for compliance largely determine this expense, so there’s a limit to how far you can trim it without cutting quality.

Premises: Rent, Utilities, Maintenance and Security

Premises-related costs include rent (where applicable), utilities, maintenance, security and ongoing compliance work. These vary hugely depending on whether you own, rent, or run from home. Getting this right from the start matters, which is why we cover it in how to start a creche.

Food and Consumables

Food represents approximately 28-30% of operating costs, making it the second-largest expense category after staff. It’s also one of the few areas where smart procurement can genuinely help.

Insurance, Registration and Compliance

Administration, insurance, safety and compliance generally account for 8-10% of monthly costs. Meeting the national norms and standards is part of this ongoing spend, not a once-off.

Admin, Marketing and Learning Resources

Educational resources, books, toys and classroom materials typically represent 7-9% of monthly expenditure.

A Sample Monthly Budget Structure

Treat these percentages as a guide rather than fixed targets.

Visual Cost Breakdown

Setting Fees That Cover Your Costs

Calculate your total monthly operating costs, divide by the number of enrolled children, then subtract subsidy income to determine your break-even fee. For context on what parents expect fees to cover, see what preschool fees include.

Where to Cut Costs Without Cutting Quality

Focus on procurement efficiencies and administrative improvements rather than reducing staffing or safety standards. The goal is a leaner operation, not a weaker one.

Quick Answers to Common Questions

How much does it cost to run a creche? Research found around R58 per child per day for registered centres, with higher-quality compliant centres costing more.

What’s the biggest expense? Staff salaries and stipends.

Does the subsidy cover all costs? No. It typically covers far less than the full per-child running cost.

How should I calculate fees? Divide total operating costs by enrolment, then deduct subsidy income.