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  • Current Introduction
  • Child Group Information
  • Personnel Costs
  • Non-Personnel Costs
  • Revenue
  • Quality Levels

Totals

Select the quality level you would like the Expense and Revenue Statement to display. If you have not entered this information yet, it will show as blank.
The Expense and Revenue Statement is not editable. It will update as you make selections and add information to PCQC.

Expenses

  • Assistant Salary Costs $– –– –– –– –– –– –
  • Mandatory Benefits $– –– –– –– –– –– –
  • Voluntary Benefits $– –– –– –– –– –– –
  • Salary Subtotal $– –– –– –– –– –– –
  • Sum of Staff Costs $– –– –– –– –– –– –
  • Total Personnel Expenses $– –– –– –– –– –– –
  • Sum of Child Costs $– –– –– –– –– –– –
  • Sum of Site Costs $– –– –– –– –– –– –
  • Total Non-Personnel Expenses $– –– –– –– –– –– –
  • Total Expenses $– –– –– –– –– –– –

Revenue

  • Subsidized Children $– –– –– –– –– –– –
  • Tuition-Based Children $– –– –– –– –– –– –
  • Subsidy and Tuition Total $– –– –– –– –– –– –
  • CACFP Food Reimbursement $– –– –– –– –– –– –
  • Revenue Subtotal $– –– –– –– –– –– –
  • Enrollment Inefficiency − $– –– –– –– –– –– –
  • Uncollected Revenue − $– –– –– –– –– –– –
  • Actual Revenue $– –– –– –– –– –– –
  • Additional Revenue $– –– –– –– –– –– –
  • Total Revenue $– –– –– –– –– –– –

Net Revenue

  • Net Revenue $– –– –– –– –– –– –
  • Net Revenue as a Percent of Total – –– –– –– –– –– –%

Cost Per Child

  • Cost per child average $– –– –– –– –– –– –
assistant wages value assistant wages value assistant wages value assistant wages value assistant wages value assistant wages value
$
$
$
$
$
$
mandatory benefits value mandatory benefits value mandatory benefits value mandatory benefits value mandatory benefits value mandatory benefits value
$
$
$
$
$
$
voluntary benefits value voluntary benefits value voluntary benefits value voluntary benefits value voluntary benefits value voluntary benefits value
$
$
$
$
$
$
salary subtotal value salary subtotal value salary subtotal value salary subtotal value salary subtotal value salary subtotal value
$
$
$
$
$
$
perstaff costs value perstaff costs value perstaff costs value perstaff costs value perstaff costs value perstaff costs value
$
$
$
$
$
$
total personnel value total personnel value total personnel value total personnel value total personnel value total personnel value
$
$
$
$
$
$
perchild costs value perchild costs value perchild costs value perchild costs value perchild costs value perchild costs value
$
$
$
$
$
$
persite costs value persite costs value persite costs value persite costs value persite costs value persite costs value
$
$
$
$
$
$
total nonpersonnel value total nonpersonnel value total nonpersonnel value total nonpersonnel value total nonpersonnel value total nonpersonnel value
$
$
$
$
$
$
total expenses value total expenses value total expenses value total expenses value total expenses value total expenses value
$
$
$
$
$
$
subsidy revenue value subsidy revenue value subsidy revenue value subsidy revenue value subsidy revenue value subsidy revenue value
$
$
$
$
$
$
tuition revenue value tuition revenue value tuition revenue value tuition revenue value tuition revenue value tuition revenue value
$
$
$
$
$
$
subsidy+tuition revenue value subsidy+tuition revenue value subsidy+tuition revenue value subsidy+tuition revenue value subsidy+tuition revenue value subsidy+tuition revenue value
$
$
$
$
$
$
cacfp revenue value cacfp revenue value cacfp revenue value cacfp revenue value cacfp revenue value cacfp revenue value
$
$
$
$
$
$
tuition+cacfp revenue value tuition+cacfp revenue value tuition+cacfp revenue value tuition+cacfp revenue value tuition+cacfp revenue value tuition+cacfp revenue value
$
$
$
$
$
$
enrollment reduced revenue value enrollment reduced revenue value enrollment reduced revenue value enrollment reduced revenue value enrollment reduced revenue value enrollment reduced revenue value
−$
−$
−$
−$
−$
−$
uncollected revenue value uncollected revenue value uncollected revenue value uncollected revenue value uncollected revenue value uncollected revenue value
−$
−$
−$
−$
−$
−$
actual tuition revenue value actual tuition revenue value actual tuition revenue value actual tuition revenue value actual tuition revenue value actual tuition revenue value
$
$
$
$
$
$
other revenue value other revenue value other revenue value other revenue value other revenue value other revenue value
$
$
$
$
$
$
total revenue value total revenue value total revenue value total revenue value total revenue value total revenue value
$
$
$
$
$
$
net revenue value net revenue value net revenue value net revenue value net revenue value net revenue value
$
$
$
$
$
$
net percentage revenue value net percentage revenue value net percentage revenue value net percentage revenue value net percentage revenue value net percentage revenue value
%
%
%
%
%
%
cost per child value cost per child value cost per child value cost per child value cost per child value cost per child value
$
$
$
$
$
$

Personnel Costs

  • Assistant or Substitute Yearly Cost (334): $– –/yr
  • Workers Comp Cost (339): $– –/yr
  • Unemployment Cost (340): $– –/yr
  • Social Security Cost (342): $– –/yr
  • Medicare Cost (343): $– –/yr
  • Health Insurance (346): $– –/yr
  • Benefits Total (349): $– –/yr
  • Salary Total (350): $– –/yr
  • Staff Costs Subtotal (355): $– –/yr

Nonpersonnel Costs

  • Annual Expenses (381): $– –– –– –– –– –– –/yr
  • Shared Business Use Subtotal (393): $– –/yr
  • Time-Space Subtotal (400): $– –– –– –– –– –– –/yr
  • Child Total Costs (409): $– –– –– –– –– –– –/yr

Revenue

  • CCAP Subsidy Revenue Subtotal (458): $– –– –– –– –– –– –/yr
  • Tuition Revenue Subtotal (468): $– –– –– –– –– –– –/yr
  • Tuition + Subsidy Revenue Total (470): $– –– –– –– –– –– –/yr
  • Tuition + CACFP Total (479): $– –– –– –– –– –– –/yr
  • Reduced Revenue due to enrollment (480): $– –– –– –– –– –– –/yr
  • Billed Tuition Revenue (481): $– –– –– –– –– –– –/yr
  • Bad Debt Basis (482): $– –– –– –– –– –– –/yr
  • Uncollected Revenue (445): $– –– –– –– –– –– –/yr
  • Actual Tuition Revenue (483): $– –– –– –– –– –– –/yr
  • Other Revenue Total (442): $0/yr

Subsidy Details

    Tuition Details

      CACFP Info

      • CACFP Free Children (473): – –– –– –– –– –– –
      • CACFP Reduced Children (472): – –– –– –– –– –– –
      • CACFP Paid Children (471): – –– –– –– –– –– –
      • CACFP Total Children (474): – –– –– –– –– –– –
      • CACFP Free Revenue (477): $– –– –– –– –– –– –/yr
      • CACFP Reduced Revenue (476): $– –– –– –– –– –– –/yr
      • CACFP Paid Revenue (475): $– –– –– –– –– –– –/yr
      • CACFP Total Revenue (478): $– –– –– –– –– –– –/yr

      Introduction

      How can the PCQC help me?

      Use this calculator to help estimate the annual cost and revenue for full- or part-time care at the program and per-child level.

      For example, the PCQC can help you answer:

      • How do my current costs compare to the costs associated with a higher quality level?
      • What is the typical cost to run a family child care home in my area?
      • How will participating in the Child and Adult Care Food Program affect my net revenue?

      How do I use it?

      The PCQC lets you create scenarios showing different provider types, manage those scenarios, and print reports of your work. If you create an account, you can save multiple scenarios so you can compare them. National and state-specific data from sources such as the U.S. Bureau of Labor Statistics (BLS) are built into the tool as default values, but you can adjust values as needed for your local area. You can also find more information in the user guide, which you can always find in the top right corner of your screen.

      What information will I need?

      This is the information you will need:

      • Group size limits by the age of child in your program
      • Maximum size of family child care homes, including how many infants and toddlers are allowed, and when an assistant is required
      • Child care subsidy payment rates for each age group and each quality level
      • Tuition rates for each age group and each quality level. You can find this in your state’s most recent market rate survey or other data sources
      • Age groups that are used to define subsidy payment rates

      You can use the data collection template to organize your information first or enter your data directly into the PCQC.

      The Provider Cost of Quality Calculator was developed by the Office of Child Care’s National Center on Early Childhood Quality Assurance with funds from Grant #90TA0002-05-02 for the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Care and Office of Head Start. This resource may be duplicated for noncommercial uses without permission.

      Fields marked with * are required

      Child Group Information

      Begin using the Provider Cost of Quality Calculator (PCQC) by selecting your state or territory. Then open each section and fill it in. You will be able to see information in the table as you fill out each section. If you need to save your information and come back to it later, please make an account.

      Fields marked with * are required

      • Enter labels for each age group to match your state, territory, or Tribal definitions. For example, you might call Age Group A “Infants” or “0-12 months,” and call Age Group B “Toddlers.” You can add more age groups by selecting the number of additional rows you need and clicking “ADD.” If you add too many rows, you can delete rows by clicking on the trashcan icon next to that row.
        Child Group Name Type of Care Number of Children Weekly Subsidy Rate Weekly Tuition Weekly Subsidy Rate Weekly Tuition Weekly Subsidy Rate Weekly Tuition Weekly Subsidy Rate Weekly Tuition Weekly Subsidy Rate Weekly Tuition Weekly Subsidy Rate Weekly Tuition Operations
        Type of Care
        $
        $
        $
        $
        $
        $
        $
        $
        $
        $
        $
        $
        more items
      • Enter the number of children in each age group. Make sure you consider the number of children allowed in a family child care home and any age limitations.
      Classroom Age GroupNumber of Children
      Enrollment efficiency describes the provider’s actual enrollment compared to the maximum staffed capacity for enrollment. For example, if a home care provider can enroll children, but has 4 enrolled, the enrollment efficiency is 67% (4/6=, 0.67x100 =67%). It is recommended that providers keep their enrollment at or above 85%.
      %
      Use this space to make notes about your scenario.

      Personnel Costs

      Enter costs associated with assistant teachers and your own hours worked.

      Fields marked with * are required

      • Home providers often work more than 40 hours per week. This includes time with children (usually 50-55 hours) plus time spent on business activities like buying food, bookkeeping, or quality-related activities. Enter your weekly hours here.
        Hours Worked per Week Hours Worked per Week Hours Worked per Week Hours Worked per Week Hours Worked per Week Hours Worked per Week
        hrs.
        hrs.
        hrs.
        hrs.
        hrs.
        hrs.
      • The PCQC calculates wages for assistants by multiplying your state or territory’s minimum wage by the number of hours worked per year.

        If you would like to use a different amount such as a living wage, enter that amount here.

        $ /hr
        hr/yr
      • Enter your state’s rates for unemployment and worker’s compensation insurance if you have an assistant. Please note that annual contributions to health insurance are for any assistants in the household.
        %
        %
        $ /yr
        Benefit Cost Operations
        $ /yr
        more items
      • There are other personnel costs to consider for the family child care provider and, if applicable, the assistant, like time spent training or the cost of background checks. For example, if you pay yourself a salary, you can add your salary here. Another example is planning for a substitute for times when you or your assistant are unavailable.
        $ /yr
        Additional Staff Cost Cost Operations
        $ /yr
        more items
      Use this space to make notes about your scenario.

      Non-Personnel Costs

      Enter your annual non-personnel and operational costs here. This page includes default values from home providers in several states. You can use these defaults or change them based on your experience and the data you have for your location.

      Fields marked with * are required

      • These annual expenses are to show the costs of using your home for your business. This section is specifically for costs that are 100% related to your business. This format follows what a home provider would enter in their annual federal income tax return (Schedule C: Profit or Loss from Business and Form 8829: Business Use of Home). If you have other costs that are 100% for your business such as the cost of a curriculum, you can add those using the “add annual expense” button. The PCQC will help you calculate shared costs that are divided between business and personal using Time-Space Percentage in the next section.
        $
        $
        $
        $
        $
        $
        $
        $
        $
        $
        $
        Training/Professional Development Training/Professional Development Training/Professional Development Training/Professional Development Training/Professional Development Training/Professional Development
        $
        $
        $
        $
        $
        $
        Professional membership dues Professional membership dues Professional membership dues Professional membership dues Professional membership dues Professional membership dues
        $
        $
        $
        $
        $
        $
        $
        Label Cost Operations
        $
        more items
      • Child assessment systems and developmental screening tools are useful in finding strengths and challenges children in your care have. This information helps you plan educational activities that the children can understand and learn from. The PCQC assumes costs of $200 and $92 for child assessment systems and developmental screening tools, but you can change these defaults to reflect your current costs.
        Child Assessment Tool Child Assessment Tool Child Assessment Tool Child Assessment Tool Child Assessment Tool Child Assessment Tool
        $
        $
        $
        $
        $
        $
        Developmental Screening Tool Developmental Screening Tool Developmental Screening Tool Developmental Screening Tool Developmental Screening Tool Developmental Screening Tool
        $
        $
        $
        $
        $
        $
        Label Cost Operations
        $
        more items
      • Time-Space Percentage is made up of a Time Percent—the number of hours in a week that you use your home for business activities which you entered in your Personnel Costs, and a Space Percent — the amount of your home out of the total space in your home that you use either exclusively or partially for your business. Time-Space Percentage helps determine how much of your shared business and personal expenses can be deducted from your taxes as a business expense.
        The PCQC calculates the Time-Space Percentage by multiplying the percentage of the number of hours worked in a week and the percentage of space in the home used exclusively and partially for child care. Enter the total square footage of your home, the square footage used exclusively for for child care, and the square footage used partially for child care. The User Guide includes further guidance.
        sq. ft.
        sq. ft.
        sq. ft.

        Time/Space Percentage

        – –– –– –– –– –– –%

        Time/Space Percentage Time/Space Percentage Time/Space Percentage Time/Space Percentage Time/Space Percentage Time/Space Percentage
        %
        %
        %
        %
        %
        %
      • The PCQC uses the Time-Space Percentage from the last section to calculate how much of your shared business and personal expenses can be attributed to the family child care business. Enter the total annual expenses for these categories or use the default values.
        $
        $
        $
        $
        $
        Expense Cost Operations
        $ /yr
        more items
      Use this space to make notes about your scenario.

      Revenue

      Enter tuition, subsidy rates, and other revenue that applies to the cost of child care for each age group. The net revenue in a home-based setting is the provider’s annual income before taxes, before buying health insurance for themselves, and before contributing to a retirement plan.

      Fields marked with * are required

      • Enter the full-time weekly subsidy and private tuition rates for each age group.

      • Enter the percentage of children in your center who are receiving a subsidy. This will be used to calculate revenue from subsidy payments. The remaining percentage will be used to calculate revenue from private tuition.
        %
      • Choosing “yes” means that the private tuition rates will be used for all children. Choosing “no” means that the subsidy rates will be applied to the percentage of children receiving subsidies and private tuition rates will be applied to the other children.
      • Do you take part in the Child and Adult Care Food Program (CACFP) to get reimbursed for serving healthy food to children?
        If you select yes, the PCQC will factor in reimbursement for breakfast, lunch, and one snack that should supplement the cost of food and food prep entered on the Non-Personnel Costs page. If you do not currently take part in the CACFP, you may be eligible.

        For CACFP either the family child care provider is eligible or some of the children in care must be eligible.

        • The Tier I family child care provider either lives in an eligible area or has an eligible income.
        • The Tier II family child care provider is not eligible for Tier I; however, they may serve some children from families whose incomes are eligible for free or reduced price meals reimbursement.

        Enter the percentage of children for whom meals and snacks are paid at Tier I and Tier II.

        %
        %
        %
      • A provider may have revenue from sources beyond tuition, child care subsidies, and CACFP. If you have any revenue from bonuses, contributions, grants, tax credits, or other sources, you can add them here.
        $ /yr
        Source Revenue Operations
        $ /yr
        more items
      • The industry standard is to keep uncollected revenue less than 3% of revenue. Programs with clear tuition payment policies and effective collection practices have a lower percentage of uncollected revenue. Those that are trying to collect large copayments from families receiving subsidies may have a higher percentage of uncollected revenue.
        %
      Use this space to make notes about your scenario.

      Quality Levels

      Many states have Quality Rating and Improvement Systems (QRIS) that set the standards for quality improvement. These systems help improve the quality of child care and early learning programs. Regardless of if your state has a QRIS, you can use the PCQC levels to model changes you may have considered for your program.

      There are five quality levels available for you to model as well as a baseline level. The baseline level shows quality related information you have entered up until now. You can go to each level and either copy your baseline information into that level and make a few adjustments to your data, or by entering new numbers from scratch in each level.

      Regulations and QRIS Levels

      Quality criteria that require more of a home provider’s time can include curriculum planning, training, or talking with families about children’s progress. Think about the number of hours needed for these and other quality related activities that you do in addition to the hours spent caring for children.

      At lower QRIS levels, you may only need an hour or two per week. At higher levels of quality, you might need an extra 4-6 hours per week for extra quality activities.

      Fields marked with * are required

      • Enter the number of hours you expect to work, including time spent on quality activities per week for baseline
      • At different quality levels, you may want to consider the costs of more training, memberships, or child assessment tools. The costs of these items may increase as quality increases. Each of these costs is applied to your program.
      • Enter the full-time weekly subsidy and private tuition rates for each age group at baseline

      Calculate Your Salary

      There are two ways you can make sure your salary is included in your calculations:

      Option 1: Compare your net revenue to the annual salary of a center director. The Salary Data spreadsheet under the Resources tab lists the average salaries for center staff in all states. You can also convert your net revenue to an hourly wage by dividing your net revenue by the total hours you work per year.

      Option 2: You can add your salary into the PCQC’s calculations by navigating to the staff cost section under the personnel cost tab and entering the salary you want to pay yourself under additional staff cost.

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