Jul 4, 2025
How Much Do Laundromats Make? Inside Profits, Margins & ROI Explained
One of the most common questions future laundromat owners ask is, how much does a laundromat actually make? While industry averages show laundromats earning anywhere from $5,000 to $25,000+ per month, your results will depend heavily on factors like location, competition, machine mix, pricing, and management.
A well-run laundromat in a dense urban neighborhood can gross over $300,000 annually. Even in smaller towns, stable income streams are achievable with smart operations and marketing. Unlike many small businesses, laundromats generate revenue daily, providing predictable cash flow—especially when you build multiple income streams.
How to Accurately Estimate Laundromat Revenue
Calculating Washer Income
Washer revenue is the backbone of most laundromats. Use the classic formula:
[# of washers x average vend price x average turns/day x 30.4 days]
For example, 10 small washers priced at $3 each with 3 turns/day would bring:
10 x $3 x 3 x 30.4 = $2,736/month
Calculate this separately for each washer size, as larger machines generally have higher vend prices and can drive significant revenue.
Estimating Dryer Income
Dryer income usually equals 33-50% of washer income. So, if your washers generate $9,000/month, dryers might bring in an additional $3,000-$4,500/month. Consistently monitoring dryer usage will help optimize pricing for better margins.
Adding Income from Extra Services
Services like wash-and-fold, pickup and delivery, or commercial accounts (like hotels or restaurants) can increase revenue by 20-40%. Ancillary services like vending machines, soap sales, or drop-off dry cleaning further improve profits with minimal additional labor.
Understanding Laundromat Valuations
How Are Laundromats Priced?
Laundromats are generally valued using a multiple of net operating income (NOI), typically 3.5x to 5x. For instance, a laundromat earning $100,000 NOI could sell for $350,000–$500,000 depending on location, lease terms, and equipment condition.
Paying the right price is crucial. Overpaying or failing to consider lease costs can quickly turn a promising investment into a financial burden. This is why thorough due diligence—and professional guidance—are key.
Estimating ROI and Cash Flow
Healthy laundromats yield unleveraged returns of 20-30% annually, far outpacing traditional real estate or dividend stocks. With financing, the power of leverage can boost your return on equity even further—if the business fundamentals are sound.
Factors That Impact Laundromat Profit Margins
Location and Foot Traffic
Laundromats in high-density residential neighborhoods with limited in-home laundry tend to outperform those in low-density or highly competitive areas. Look for areas with rental housing, student populations, or neighborhoods with high foot traffic.
Operating Costs and Lease Agreements
Your profit margin can evaporate with high fixed costs. A good rule of thumb: lease costs should not exceed 20-25% of gross revenue. Negotiate long-term leases with renewal options and avoid escalation clauses that can cripple cash flow.
Equipment Condition and Efficiency
Older machines often mean higher utility bills and frequent repairs. Investing in energy-efficient washers and dryers can dramatically improve margins through reduced water, gas, and electric usage.
Why Laundromats Are a Cash-Flowing Investment
Stability in Any Economy
Laundry is an essential, recession-resistant service. Whether times are good or bad, people still need clean clothes—making laundromats one of the most reliable small business investments.
High Cash Flow Potential
Average laundromat profit margins range from 30-40%, driven by upfront payment models and minimal inventory requirements. Unlike restaurants or retail, laundromats typically don’t deal with receivables, spoilage, or significant ongoing supply costs.
Simplicity of Operations
Laundromats don’t require extensive staff. Many owners operate unattended or semi-attended models, allowing them to spend time on other investments or scaling to multiple locations.
Why Some Laundromats Struggle
Inadequate Due Diligence
Buying a laundromat without verifying reported income, expenses, and lease terms is a fast track to failure. Always compare utility bills against stated revenues, as water and gas usage can reveal if sales figures are overstated.
Unsustainable Lease Terms
A common mistake is accepting leases with high rent relative to income or too short a term. A great location loses its value if your lease forces you out before recouping your investment.
Poor Management or Marketing
Dirty facilities, broken machines, or lack of modern conveniences like card systems can drive customers away. And even the best-run laundromat can fail without effective marketing to attract new customers.
How to Increase Laundromat Revenue
Add Wash-and-Fold and Delivery Services
Offering wash-and-fold can double revenue per pound of laundry. Pickup and delivery services tap into a growing market of busy professionals willing to pay for convenience.
Optimize Pricing and Hours
Review competitor pricing and adjust yours to reflect value while staying competitive. Extending hours or offering 24/7 access in safe areas can boost revenue by capturing off-peak customers.
Invest in Marketing and Branding
A professional website, local SEO, paid ads, and social media presence can drive more traffic than word-of-mouth alone. Modern customers research laundromats online before visiting, so your digital presence must shine.
Websites That Convert
Studio Ecks builds mobile-optimized, SEO-friendly websites designed to attract and convert laundromat customers. Whether you’re starting fresh or revamping an outdated site, we tailor every project to the laundry industry—no generic templates here.
Local SEO That Puts You on the Map
Our hyperlocal SEO strategies ensure your laundromat shows up when customers search “laundromat near me” or “wash and fold [city].” Neighborhood-focused pages and optimized Google Business Profiles build local authority and keep your machines full.
Paid Ads That Drive Orders
We run data-driven paid ad campaigns on Google and social media, targeting your ideal customers in specific zip codes. Perfect for promoting pickup and delivery, special offers, or grand openings.
Professional Branding Services
From logo design and store signage to flyers and window decals, Studio Ecks helps you build a polished, consistent brand that attracts customers and stands out from competitors.
Evaluating Laundromat Listings
Verify Financials
Request at least 2-3 years of income statements, utility bills, and tax returns. Verify that revenue aligns with utility usage and industry benchmarks.
Inspect the Equipment
Machines are the heart of your business. Check age, condition, and maintenance records. Plan for replacements if a significant number of machines are older than 10-12 years.
Evaluate the Lease
A bad lease can sink even a profitable laundromat. Confirm term length, renewal options, escalation clauses, and maintenance responsibilities.
Long-Term Growth
Reinvest in Equipment and Facilities
Upgrading to energy-efficient machines reduces utility costs and attracts customers who value speed and reliability. Clean, well-lit, and safe facilities keep them coming back.
Diversify Revenue Streams
Offer vending machines, laundry supplies, commercial accounts, and new services like dry cleaning drop-off. Multiple revenue sources stabilize income during slow periods.
Leverage Technology
Implement card or app-based payment systems for convenience and efficiency. Consider laundromat management software for real-time reporting, dynamic pricing, and customer insights.
