Should I buy an existing laundromat or build one from scratch?

Buying an existing laundromat typically costs $150,000-$500,000 depending on location, equipment age, and revenue. The major advantage is immediate cash flow -- you inherit customers, equipment, and a proven location. Building from scratch costs $200,000-$1,000,000+ but lets you pick the ideal location, install modern equipment, and design the layout for maximum efficiency. First-time owners often prefer buying an existing store because it removes the 6-12 month buildout period and the risk of choosing a bad location.

How long does it take for a laundromat to become profitable?

Most laundromats reach profitability within 2-4 years. A well-located store with new equipment generating $15,000-$30,000 in monthly revenue can break even in 18-24 months. Stores with higher startup debt or in slower markets may take 4-5 years. The key metrics are turns per day (how many times each machine is used) and revenue per square foot. A healthy laundromat sees 4-6 turns per day on its washers.

How do most laundromat owners finance the startup costs?

The most common financing routes are SBA 7(a) loans (up to $5 million, 10-25 year terms, 10-20% down), SBA 504 loans for real estate and equipment purchases, commercial bank loans, and equipment financing from manufacturers like Speed Queen or Dexter. Equipment financing is popular because the machines serve as collateral, and manufacturers often offer favorable terms (5-7 year terms, 10% down). Many owners combine an SBA loan for the buildout with manufacturer financing for the equipment.

What's the difference between attended and unattended laundromats?

Unattended laundromats have the lowest operating costs ($0 in labor) but higher vandalism risk, messier stores, and no ability to offer wash-and-fold service. Attended stores cost $1,500-$4,000/month more in wages but stay cleaner, experience less machine abuse, and can upsell wash-and-fold and dry cleaning drop-off. Full-service stores with wash-and-fold charge $1.25-$2.00 per pound and can generate 30-50% more revenue per square foot than self-serve-only operations.

Why are utility costs so high for laundromats?

Laundromats are one of the most utility-intensive small businesses. A mid-size store uses 500-1,500 gallons of water per day, runs gas-fired water heaters 10-14 hours daily, and powers 30+ electric motors continuously. Total utility bills typically run $2,000-$5,500/month. High-efficiency machines can cut water use by 30-40% and gas by 20-30% compared to older top-load models, which is why many owners justify the premium equipment cost through lower monthly utility bills.

What makes a good location for a laundromat?

The ideal laundromat location has high population density (especially renters -- 50%+ renter households is ideal), limited competition within a 1-mile radius, a visible storefront with ample parking (15-20 spaces minimum), and proximity to apartment complexes, colleges, or lower-to-middle-income neighborhoods. Strip malls and retail centers with anchor tenants (grocery stores, dollar stores) work well because they drive foot traffic. Avoid areas with declining population or heavy existing laundromat competition.

How much does it cost to buy an existing laundromat?

The typical purchase price for an existing laundromat ranges from $150,000 to $500,000, though high-revenue stores in prime locations can sell for $750,000 or more. Laundromats are generally valued at 2.5–4x their annual net operating income (NOI), so a store netting $100,000/year would sell for roughly $250,000–$400,000. The purchase price usually includes all equipment, the lease assignment, and existing customer goodwill. On top of the acquisition price, budget $20,000–$80,000 for immediate upgrades — buyers often need to replace aging machines, refresh the interior, add card payment systems, or address deferred maintenance. Financing an acquisition is typically easier than financing a new build because lenders can underwrite against the store's proven revenue history. SBA 7(a) loans cover laundromat acquisitions with 10–20% down and 10-year terms.

Is it cheaper to buy or build a laundromat?

Buying is usually cheaper upfront. A turnkey existing laundromat costs $150,000–$500,000, while building from scratch runs $200,000–$1,000,000+ once you factor in lease deposits, full buildout (plumbing, drainage, ventilation, flooring), and brand-new equipment. Buying also eliminates the 6–12 month construction period where you're spending money with zero revenue. However, building from scratch can be more profitable long-term: you choose the ideal location, install modern high-efficiency machines that cut utility costs by 20–30%, design the layout for maximum machine density, and avoid inheriting someone else's deferred maintenance. Many experienced laundromat investors buy an underperforming store at a discount, then renovate and re-equip it — combining the lower entry cost of buying with the efficiency gains of new equipment. This 'buy and retool' strategy typically costs $250,000–$600,000 total and can double the store's revenue within 12–18 months.

Home / Laundromat Startup Costs

How Much Does It Cost to Start a Laundromat?

$200,000 – $1,000,000

Opening a laundromat ranges from $200,000 for a small neighborhood store with used equipment to $1 million or more for a large, fully equipped location with premium machines. The biggest cost drivers are commercial washers and dryers ($3,000–$8,000 each, and you need 15–40 of them), the buildout (plumbing, drainage, and ventilation are extensive), and ongoing utility bills that can top $5,000 per month. Modern laundromats increasingly offer wash-dry-fold (WDF) drop-off service, digital payment kiosks, and ozone sanitization systems — upgrades that attract higher-value customers and boost revenue per square foot. An alternative to building from scratch is buying an existing laundromat, which typically costs $150,000–$500,000 depending on location, equipment age, and monthly revenue. Buying gives you immediate cash flow, an established customer base, and a proven location — but you may inherit aging equipment that needs replacement within a few years. Whether you build or buy, SBA loans and manufacturer financing (from brands like Speed Queen and Dexter) are the most common funding routes.

Last updated Mar 2026 · Based on Coin Laundry Association (CLA) industry survey data, Speed Queen, Dexter, and Continental commercial equipment pricing, SBA 7(a) and 504 lending data (2024-2025)

How Others Funded Their Laundromat

Based on 1,193 startup loans (NAICS 812310)

$409K

Median SBA startup loan

25th: $163,00075th: $926,500

Source: SBA 7(a) & 504 loan data, FY2010–2025

What Laundromat Staff Earn

National median wages

Occupation	Hourly	Annual
Laundry and Dry-Cleaning Workers	$16.25/hr	$33,800

Source: BLS Occupational Employment and Wage Statistics, May 2024

Laundromat Industry Snapshot

Total Establishments

10.9K

10,911 nationwide

Total Employees

41.1K

across all locations

Avg Employees / Location

3.8

per establishment

Avg Annual Payroll / Employee

$25,368

annual compensation

Source: U.S. Census Bureau, County Business Patterns 2022 · NAICS 812310

Laundromat Profitability

Annual Revenue

$189,464 – $341,902

Gross Margin

55–70%

Net Margin

34–38%

Owner Salary

$65,000 – $131,000

Break-Even

36–60 months

5-Year Failure Rate

Key Margin Drivers

Utility efficiency — operators with high-efficiency washers/dryers see 10% higher net margins
Recession-resistant demand with extremely low failure rates
High-rent markets (e.g., NJ) can generate $342K revenue with $131K owner salary
Laundromats command premium valuations at 3.65x–4.12x earnings

Laundromat Monthly Operating Costs

Monthly burn: $10,000–$32,000

Typical: $20,000/mo

Line Item	Low	Typical	High
Rent/LeasePrime location drives the 45K annual visits target	$1,500	$4,500	$10,000
PayrollManager ($60K) and attendants ($35K)	$2,500	$15,792	$18,000
UtilitiesWater, gas, electricity — 45–55% of total burn	$1,200	$4,000	$6,000
COGS/SuppliesDetergents and vending inventory — target 15% of revenue	$300	$800	$1,500
MarketingDigital coupons to drive off-peak usage	$200	$1,440	$2,000
MaintenanceReserve for high-efficiency machine repairs	$500	$1,080	$2,000
Insurance	$100	$500	$1,000
Software/TechRemote monitoring and app-based payments	$50	$300	$800
Payment Processing25% of digital revenue goes to processing fees	$200	$600	$1,200
Total	$10,000	$20,000	$32,000

Key Cost Drivers

Rent + utilities = 45–55% of total burn — location and energy efficiency are the two biggest levers
Utility costs are the most volatile line item — high-efficiency equipment ROI is compelling
Unattended models eliminate $15K+/mo in payroll but increase vandalism and maintenance costs

Consistent year-round demand. Slight increase in winter due to heavy bedding and outerwear.

FAQ

Where This Data Comes From

Coin Laundry Association (CLA) industry survey data
Speed Queen, Dexter, and Continental commercial equipment pricing
SBA 7(a) and 504 lending data (2024-2025)
Commercial real estate data (CoStar, LoopNet market reports)
Wholesale Appliance Center — Commercial Laundry Equipment Pricing (2026)
Unity — Commercial Washer and Dryer for Laundromat 2026 Guide (2026)
BLS Consumer Price Index — January 2026 (Energy Services) — U.S. Bureau of Labor Statistics (January 2026)
SBA 7(a) & 504 Loan Data — U.S. Small Business Administration (FY2010–2025)
Occupational Employment and Wage Statistics (OEWS) — U.S. Bureau of Labor Statistics (May 2024)
Fair Market Rents — U.S. Department of Housing and Urban Development (FY2026)

All figures are estimates based on publicly available data and industry benchmarks. Actual costs vary by location, timing, and business decisions.

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