Free Interactive Estimator

How Much Does It Cost to Start a Home Care Agency?

Use our free estimator to get a personalized startup budget. Choose your state, agency type, and office setup to see an itemized cost breakdown in seconds.

Start Estimating

Build Your Estimate

Adjust the options below and your estimate updates instantly.

5

Includes background checks, advertising, and initial training costs per hire.

Estimated Startup Cost

$23,578range: $18,862$30,651

Itemized Breakdown

State Licensing

Florida non-medical license

$3,000

Office Setup

Home office (rent + equipment + furniture)

$2,500

Insurance

General liability, workers' comp, fidelity bond

$3,038

Technology

Care management software, website, phone system

$2,540

Recruitment

Background checks, advertising, training for 5 caregivers

$7,500

Marketing

Initial marketing budget (website SEO, local ads, referrals)

$3,000

Legal & Formation

Business formation, compliance review, policies

$2,000

Cost Proportions

State Licensing$3,000
Office Setup$2,500
Insurance$3,038
Technology$2,540
Recruitment$7,500
Marketing$3,000
Legal & Formation$2,000

Estimated Monthly Operating Cost (Year 1)

$12,865 / month

Includes estimated caregiver payroll (~$2,400/caregiver/mo), rent, insurance, technology, and miscellaneous overhead.

These are estimates based on industry averages and publicly available data. Actual costs vary by location, market conditions, and individual circumstances. Consult a local accountant or attorney for precise figures.

Understanding Home Care Startup Costs

Starting a home care agency involves several cost categories. Here is what you should know about each one.

States That Don't Require a License for Non-Medical Home Care

  • Iowa
  • Massachusetts
  • Michigan
  • New Hampshire
  • Ohio
  • South Dakota

While these states don't require a home care-specific license, you may still need a general business license and other registrations.

Timeline & Revenue Context

Typical timeline: Most agencies take 3–6 months from concept to first client, depending on state licensing speed.

Revenue potential: The average established home care agency generates $1–2M in annual revenue with 10–20% net margins.

Industry growth: Home care is one of the fastest-growing industries in the U.S., projected to grow 22% through 2032 (Bureau of Labor Statistics).

Sources: The Biz of Senior Care, Ankota, Financial Models Lab, Insureon, Bureau of Labor Statistics. Figures represent industry averages as of 2025 and may vary.

Built for New Agencies

Starting a Home Care Agency?

AveeCare is the software platform built for new agencies — no contracts, no training required, and your first month is free. Everything you need to schedule caregivers, bill clients, and stay compliant — starting at $6 per client per month.

No credit card required · Cancel anytime · HIPAA compliant