How Much Does It Cost to Start a Laundromat?
Starting a laundromat typically costs $250,000 to $500,000 for equipment, plumbing and electrical work, with most of the project financed by equipment manufacturers or SBA lenders. Revenue Map's laundromat presets model a $360,000 build-out for a 2,500 sq ft self-service store with 40 machines, financed by a $270,000 loan at 9% over ten years, and $140,000 of owner investment to cover the equity gap and the ramp.
A laundromat is a capacity business with almost no cost of goods and almost no payroll. Capacity is machines times turns per day times open days, utilization is the share of those cycles actually sold, and the ticket is one machine cycle, blended across a wash and a dry, so it sits around $5 to $7 even though a customer with a full load spends twice that. Cost of goods is vended soap and retail detergent only at about 6%, so gross margin lands near 94%. What takes its place is utilities: water, sewer, gas for the dryers and electricity for forty machines commonly run 15 to 20% of revenue, far above any other retail format.
Format changes the economics. Revenue Map's industry presets show a self-service store at $360,000 capex, a wash-and-fold at $400,000 with staff for attended service, a hybrid at $380,000, and a pickup-and-delivery operation at $440,000 with the heaviest payroll. The breakdown below covers the funded path for a default 40-machine self-service store.
Cost Breakdown
Typical startup costs for a new laundromat
| Item | Typical range | Notes | Source |
|---|---|---|---|
| Equipment and build-out | $250,000 to $500,000 | Washers, dryers, plumbing, electrical, venting and signage for a 2,500 sq ft store; default at $360,000 | Revenue Map model presets |
| Loan financing (default) | $270,000 at 9% over 10 years | Covers 75% of the $360,000 build-out; monthly debt service roughly $3,420 | Revenue Map model presets |
| Owner investment (equity and working capital) | $140,000 | Covers the equity gap between the loan and the build-out plus losses during a six-month ramp | Revenue Map model presets |
| Monthly utilities | $3,300 to $3,800 | Water, sewer, gas and electricity for 40 machines; 15 to 20% of revenue at full utilization | Revenue Map model presets |
| Monthly rent | $4,000 to $4,100 | 2,500 sq ft strip-mall or street-level unit; location determines the traffic ceiling | Revenue Map model presets |
| Cost of goods (soap and supplies) | 6% of revenue | Vended soap and retail detergent; gross margin near 94%, the highest of any physical business | Revenue Map model presets |
Sources: Revenue Map model presets (default investment, pricing and funnel assumptions in our industry templates), Revenue Map model templates (vertical research in each financial model), Revenue Map benchmark tables (the thresholds behind our free calculators), and honest industry ranges where our own data is thin. Ranges are planning bands, not guarantees.
What Moves the Number
Equipment cost is the budget
Machines, plumbing, electrical and venting account for most of the build-out. Manufacturers' finance arms write 70 to 75% of the project over ten years, which is why the debt-to-capex ratio in the presets sits near 75%. A second-generation location with working plumbing can cut tens of thousands from the build-out because the plumbing is the expensive part, not the machines.
Utilities replace cost of goods
With COGS at just 6%, the traditional cost-of-goods line is trivial. Instead, utilities claim 15 to 20% of revenue at $3,300 to $3,800 per month in the presets, far above any other retail format. A water or gas rate increase arriving after the equipment is bought is the most common way a laundromat with sound economics still struggles.
Utilization is the only lever
Revenue Map's presets move utilization from 48% in phase one to 60% in phase two and 70% at maturity. At 40 machines turning 5 times a day over 30 days, that is a ceiling of 6,000 cycles per month. At 70% utilization and a $6.25 ticket, monthly revenue reaches roughly $26,250. The store needs about 60% utilization to cover all obligations including the loan.
The format decision sets the staffing line
A self-service store runs with one attendant at $2,400 per month. Wash-and-fold adds 1.5 more staff. Pickup-and-delivery pushes to 3.5 staff with higher marketing spend. Each step up adds payroll and complexity but also lifts the average ticket from $5.75 to $11 for delivery, so the revenue per cycle grows alongside the cost.
Frequently Asked Questions
Can you open a laundromat for under $300,000?
How much revenue does a laundromat make?
Why are laundromat utilities so high?
How much staff does a laundromat need?
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