Industry Guides
How Much Profit Can a Laundromat Make?
Explore laundromat revenue, operating expenses, profitability, and the assumptions behind a realistic forecast.
What determines laundromat profit?
A laundromat's profit depends on how many machines are available, how often customers use them, prices per cycle, and the costs of operating the location. There is no reliable universal monthly profit figure: local demand, rent, utility rates, machine condition, debt, and competition can produce very different outcomes.
A practical forecast starts with the number of washers and dryers, average cycles per day, price per cycle, and operating days. It then subtracts the costs required to keep the business running.
Estimate washer and dryer revenue
Consider an illustrative laundromat with 24 washers and 20 dryers, open 30 days per month. Assume washers average 3 paid turns per day at $4 per turn and dryers average 3 turns at $2.50.
- Washer revenue: 24 × 3 × $4 × 30 = $8,640 per month.
- Dryer revenue: 20 × 3 × $2.50 × 30 = $4,500 per month.
- Total machine revenue: $13,140 per month.
This is an example, not an industry average. Turns per day are especially important: a small change in usage can substantially change revenue. Not every machine will necessarily receive the same demand.
Include additional services
Some laundromats earn revenue from wash-dry-fold services, vending, commercial laundry accounts, or pickup and delivery. These services may increase revenue but can also require additional labor, supplies, vehicles, or processing expenses.
Suppose the example location earns another $1,200 from wash-dry-fold and $300 from vending. Total illustrative monthly revenue becomes $14,640.
Subtract the actual operating expenses
Common expenses include rent, utilities, labor, maintenance, insurance, cleaning, payment processing, and supplies. Debt payments can affect cash flow and should be examined separately from accounting operating profit when making investment decisions.
For an illustrative monthly cash-oriented estimate, suppose costs are:
- Rent: $3,200.
- Utilities: $3,600.
- Labor and cleaning: $2,000.
- Maintenance: $700.
- Insurance and other overhead: $600.
- Payment processing and supplies: $500.
These total $10,600, leaving $4,040 before taxes, depreciation, financing costs not listed above, and owner-specific adjustments. It is not a guaranteed take-home amount. If the owner performs unpaid work, the estimate can overstate economic profit unless a fair labor cost is included.
Use the Laundromat Profit Calculator to enter your own machine counts, usage, revenue, and expenses.
Profit margin versus cash flow
In this example, $4,040 divided by $14,640 gives an illustrative margin of approximately 27.6% before the exclusions described above. That percentage should not be compared directly with a net profit margin calculated after all financing and tax effects.
Cash flow also depends on when bills are paid, whether equipment needs replacement, and how loans are structured. A profitable location can still face a cash shortage if major repairs or debt payments come due.
Questions to ask before buying or opening
- Demand: What evidence supports the expected number of turns per machine?
- Utilities: Are water, sewer, gas, and electricity costs based on recent bills?
- Equipment: How old are the machines, and what repair or replacement costs are likely?
- Lease: Are rent increases, common-area charges, or renewal terms material?
- Competition: Are nearby laundromats newer, cheaper, cleaner, or better located?
- Owner workload: Does the forecast include the labor required to manage the business?
Test downside scenarios
If turns per day fall from 3 to 2.5 in the example, machine revenue falls by roughly one-sixth before considering any other changes. Expenses such as rent may remain largely unchanged. Test lower usage, higher utilities, and unexpected repairs rather than relying on a single optimistic forecast.
Next step: Build a base, downside, and upside case with the BizToolLab Laundromat Profit Calculator. For a separate explanation of margin percentages, read Understanding Business Profit Margins.