How to Set Tuition for Your Hybrid School
This post is generated from the transcript of Episode 19 of the podcast. Check it out!
If you caught my last episode about paying yourself, you know how important it is to think about sustainability from the very beginning. This week, I want to zoom in on one of the trickiest — and most important — parts of planning your hybrid program: setting your tuition.
This is where all that early research, market conversations, and “what if” math finally come together. It’s not glamorous, but it’s foundational to creating a thriving, sustainable program.
Start With a Planning Budget
If you’re still in the planning phase, you’re probably talking to families, hosting interest meetings, maybe sending out surveys, and getting a feel for your community’s needs. That’s exactly where you should be.
At this point, you’re not actually building the infrastructure yet — you’re just researching it. You’re figuring out things like:
What kind of staffing you’ll need
What systems or technology will support your program
What facilities might cost
What your general operating expenses might look like
You’re gathering all that information so you can build a planning budget — a realistic picture of what your expenses will be. That budget becomes the foundation for setting your tuition.
Add a Cushion (and a Miscellaneous Line!)
Here’s my simple, tried-and-true method:
Add up all your expected expenses.
Add a cushion of about 10% on top of that.
Include a “miscellaneous” category.
When I first started, my miscellaneous line item was only about $500. Later, as the school grew, it became a few thousand. But no matter the size, I never regretted having it. There will always be surprise expenses — guaranteed.
Work Backward to Find Tuition
Once you have your total expenses, divide them by the number of students you plan to serve. That gives you your tuition number.
Of course, the tricky part is that “plan” word — what if you don’t actually get that many students?
That’s where you’ll want a Plan A and Plan B.
Plan A is your ideal: full classes, everyone paid fairly, and a bit of cushion.
Plan B is your lean version: you tighten your belt, maybe pay yourself less for a short time, and make things work until enrollment catches up.
Notice I said short time. Don’t make a habit of underpaying yourself. You can get through one lean year, but long-term sustainability depends on you valuing your own work as much as everyone else’s.
Set a Minimum to Open
Every program needs a minimum enrollment number — the smallest number of students you can have and still cover your essential costs.
You should know that number and communicate it clearly to your families.
For example:
“We need a minimum of 12 students per class to open this year.”
That clarity builds trust and helps families understand the reality of running a small program. If you don’t hit that minimum, you have a plan — whether that’s delaying the start or refunding tuition. It’s not fun, but it’s responsible.
Think About Class Size and Space
Your tuition is also tied to class size and physical space. Smaller classes usually mean higher tuition; larger classes allow you to lower it a bit.
Sometimes your building itself will dictate class size — maybe one room comfortably fits only 10 kids. In that case, you’ll need to make sure tuition reflects that smaller capacity.
It’s all about finding your sweet spot — where your philosophy, your space, and your financial needs align.
Don’t Promise Too Early
During your early interest meetings, it’s totally fine to give a tuition range — say, between $3,000–$3,500 for a two-day-a-week program. But don’t make firm promises until you’ve done your full budget math.
It’s much better to refine the number behind the scenes and then confidently share it, knowing you can deliver on it.
Plan for Discounts (and Be Realistic!)
Sibling discounts and staff discounts are a wonderful way to support families and staff — but they can also eat into your revenue quickly.
Here’s what I learned the hard way:
Many families will have two or more kids enrolled.
Many staff members will have children in the program.
Discounts add up fast.
At one point, I ran the numbers and realized that, on average, we were bringing in about 92% of our posted tuition because of discounts. Knowing that helped me plan more accurately for the next year.
It’s also okay to raise tuition slightly to account for these realities. If you think you’ll have a lot of sibling or staff discounts, bump tuition by $50–$150 per student before you publish it. That small adjustment can make a big difference to your long-term stability.
Build for Sustainability, Not Scrimping
It can feel scary to set tuition a little higher than you’d like, especially when you’re just starting out. But remember: your goal isn’t to run the cheapest program in town — it’s to build one that’s sustainable, high-quality, and trustworthy. A hybrid program is already a fraction of the cost of a full-time program, so you do not have to cut every single penny off tuition if doing so will impact stability.
Families value clarity and quality. When they see that you run a well-planned, fiscally responsible program — one that pays staff fairly, maintains a healthy reserve, and isn’t constantly fundraising just to survive — that builds confidence.
They’re not looking for a bargain; they’re looking for a dependable, enriching experience for their kids.
Final Thoughts
Setting tuition isn’t just about covering costs — it’s about creating the foundation for a thriving, sustainable hybrid program.
When you:
Do your research
Build a realistic planning budget
Add a cushion
Set clear minimums and expectations
And value your own work
…you’re not just running a school. You’re building a community that lasts.
And that’s worth every bit of the budgeting spreadsheet it takes to get there
