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Childcare Labor Cost Calculator
Input your figures below to verify if your weekly roster spend aligns with standard Australian childcare benchmarks (50% - 60% of gross fees).
Childcare Labor Cost Calculator
Compare your weekly staff costs against Australian childcare industry benchmarks.
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Calculation Output
Total Weekly Labor Cost$15,145
Labor Cost to Revenue Ratio60.6%
0%50% (Min Benchmark)60% (Max Benchmark)100%
Slightly ElevatedYou are slightly above the healthy industry benchmark. Check for unauthorized overtime, casual shift lengths, or low occupancy days where staffing ratios aren't optimized.
Target industry standard for childcare profit is 50% - 60%.
Need a Roster Audit? Contact Childcare BookkeeperUnderstanding the 50-60% Childcare Labor Standard
Wages are the most dynamic operating cost in childcare. In Australia, strict educator-to-child ratios (regulated by ACECQA under the National Quality Framework) dictate the minimum staff required on-site.
To maintain profitability, successful childcare centers aim to keep total labor costs (including gross wages, superannuation, and workers' compensation insurance) between 50% and 60% of total weekly revenues.
Tips to Optimize Roster Efficiency:
- Staggered Start Times: Rather than roster all educators for a flat 8-hour shift starting at 7 AM, schedule start times incrementally (e.g. 7:00, 7:30, 8:30) as children arrive.
- Dynamic Overtime Monitoring: Ensure shift handovers are clean so staff do not accumulate unauthorized 15-minute increments of overtime daily, which quickly compound.
- Track Under-Occupancy: If bookings drop unexpectedly, consider offering part-time staff voluntary leave or reducing casual hours to match direct ratios.