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The coin laundry business offers stable profit margins ranging from 20% to 35% for well-managed operations. Understanding these margins requires analyzing revenue streams, operating expenses, and scaling opportunities specific to the laundromat industry.
If you want to dig deeper and learn more, you can download our business plan for a laundromat. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our laundromat financial forecast.
Coin laundry businesses typically achieve net profit margins of 20-35% with monthly revenues ranging from $5,000 to $25,000 for average locations.
The following table breaks down the key financial metrics that determine laundromat profitability:
| Metric | Range | Details |
| Monthly Revenue | $5,000 - $25,000+ | Urban locations can reach $30,000+ with high foot traffic |
| Annual Revenue | $100,000 - $300,000 | Gross revenue before operating expenses |
| Net Profit Margin | 20% - 35% | After all operating expenses and fixed costs |
| Machine Count | 40 - 100 machines | Typical profitable operation requires 20-30 washers, 20-30 dryers |
| Revenue per Machine | $270 - $900/month | Based on 3 turns per day at $3-5 per wash |
| Gross Margin | ~80% | Before fixed costs like rent and utilities |
| ROI Timeline | 3 - 5 years | With initial investment of $200,000 - $500,000 |
What is the typical monthly and yearly revenue range for a single coin laundry location?
A typical coin laundry location generates monthly revenues between $5,000 and $25,000, with urban facilities potentially reaching $30,000 or more.
The revenue range depends heavily on location demographics, machine utilization rates, and foot traffic patterns. Urban areas with high concentrations of renters, students, and apartment dwellers typically see higher revenue volumes. Suburban locations may generate lower monthly figures but often have more stable customer bases.
On an annual basis, most coin laundry operations achieve gross revenues between $100,000 and $300,000. High-performing locations in dense urban markets can exceed $350,000 annually. These figures represent total revenue before operating expenses, which typically consume 65-80% of gross income depending on operational efficiency and local cost structures.
Revenue performance correlates directly with machine capacity and utilization rates. Locations operating 40-100 machines with consistent 60-70% utilization during peak hours tend to achieve the upper revenue ranges. Off-peak performance and seasonal variations also significantly impact annual totals.
You'll find detailed market insights for revenue projections in our laundromat business plan, updated every quarter.
How many washers and dryers are needed for profitable operations and their earnings per machine?
Profitable laundromat operations typically require 40-100 machines total, with an optimal mix of 20-30 washers and 20-30 dryers to balance capacity and customer flow.
The machine count depends on location size, target demographics, and service model. Smaller operations with 20-40 machines can achieve profitability in tight urban markets or specialized neighborhoods. Larger facilities with 80-100+ machines generate economies of scale but require higher upfront investment and operational complexity.
Individual machine earnings vary significantly by location and pricing strategy. Average daily earnings per machine range from $10-30, assuming 3 cycles per day at $3-5 per wash or dry cycle. Weekly earnings typically fall between $70-210 per machine, while monthly figures range from $270-900 per machine depending on utilization rates and local pricing power.
Large-capacity washers consistently outperform standard units, generating 40% higher revenue per cycle due to premium pricing for oversized loads. Dryer performance often correlates with washer utilization, as most customers use both services in sequence. High-efficiency machines reduce operating costs while maintaining revenue levels.
This machine optimization strategy is one of the many elements we break down in the laundromat business plan.
What additional services contribute to monthly revenue and by how much?
| Service Type | Monthly Revenue | Implementation Details |
| Wash-and-Fold | $1,290 - $1,500 | Represents 20-30% of total revenue, requires staff and pricing at $1.50-2.50/lb |
| Vending Machines | $50 - $200 | Detergent, snacks, beverages; 10-15% profit margins on products |
| Dry Cleaning Drop-off | $300 - $800 | Partnership with local cleaners, $80-100 average order value |
| Pickup/Delivery | $500 - $1,200 | Premium service for busy customers, higher margins than in-store |
| ATM Services | $100 - $300 | Transaction fees and commission from usage |
| Loyalty Programs | 5-10% revenue boost | Increases customer spend by 12-18% through repeat business |
| Cycle Modifiers | $200 - $500 | Premium wash settings at $0.50-1.50 surcharge per cycle |
What are the main operating expense categories and their monthly costs?
| Expense Category | Monthly Cost | Details and Variables |
| Rent/Lease | $2,000 - $8,000 | Prime urban locations command higher rents; suburban areas typically lower |
| Utilities | $2,000 - $5,000 | Water, electricity, gas consumption; high-efficiency machines reduce by 20-30% |
| Labor | $2,000 - $8,000 | Attendants for wash-and-fold, cleaning, customer service; varies by service level |
| Maintenance/Repairs | $500 - $2,000 | Regular servicing, emergency repairs, parts replacement |
| Insurance/Licenses | $1,000 - $3,000 | Liability, property, workers' compensation, business licenses |
| Supplies/Marketing | $500 - $2,000 | Cleaning supplies, detergent for vending, promotional materials |
| Loan Payments | $1,500 - $4,000 | Equipment financing, business loans for initial investment |
How much do utilities cost per machine monthly and how do high-efficiency machines impact costs?
Utilities typically cost $50-150 per machine per month, with water representing the largest expense component for washers and electricity/gas dominating dryer costs.
Water consumption averages 25-40 gallons per wash cycle, translating to $15-30 monthly per washer depending on local utility rates. Electricity costs for dryers range from $20-50 monthly per unit, while gas-powered dryers typically cost $10-25 monthly in fuel expenses. HVAC and lighting add another $10-20 per machine in allocated facility costs.
High-efficiency machines dramatically reduce utility consumption and operating costs. Energy Star certified washers use 30-50% less water and 25% less energy compared to standard models. These machines save approximately $1,736 annually per unit through reduced utility consumption, making them highly attractive for long-term profitability despite higher upfront costs.
Modern high-efficiency dryers with moisture sensors and heat pump technology can reduce energy consumption by 20-40%. Gas-powered high-efficiency dryers typically offer better operating economics than electric models in most markets, with 60-80% lower energy costs per cycle.
This is one of the strategies explained in our laundromat business plan.
What is the expected gross profit margin and how does it vary by service type?
Laundromats typically achieve gross profit margins of approximately 80% before fixed costs, with variations depending on service mix and operational efficiency.
Self-service machine operations generate the highest gross margins, often reaching 85-90% since variable costs consist primarily of utilities, supplies, and minor maintenance. The primary expenses are water, electricity, detergent for vending, and occasional repair costs, leaving substantial margins for fixed cost coverage.
Full-service offerings like wash-and-fold typically generate lower gross margins of 60-70% due to labor costs and increased handling requirements. However, these services command premium pricing that often compensates for reduced margin percentages through higher absolute dollar profits per customer transaction.
Ancillary services contribute varying margin profiles to the overall business. Vending machines generate 60-80% gross margins, while dry cleaning drop-off services typically yield 40-60% margins after partner commissions. Digital payment systems and loyalty programs can improve overall margins by reducing cash handling costs and increasing customer retention rates.
Get expert guidance on optimizing service mix margins inside our laundromat business plan.
What does a 20-35% net profit margin mean in practice for small-to-medium operations?
A 20-35% net profit margin translates to $1,000-8,750 monthly net income for small-to-medium laundromats, depending on revenue scale and operational efficiency.
For a typical operation generating $15,000 monthly revenue, a 25% net margin produces $3,750 monthly profit or $45,000 annually. Smaller operations with $8,000 monthly revenue at 20% margins net $1,600 monthly, while larger facilities reaching $25,000 monthly revenue at 35% margins can achieve $8,750 monthly profits.
These margins account for all operating expenses including rent, utilities, labor, maintenance, insurance, and loan payments. The variation in margin percentages typically reflects operational efficiency, location advantages, service mix optimization, and management quality rather than fundamental business model differences.
Higher-margin operations usually demonstrate superior cost control through energy-efficient equipment, optimized staffing models, strategic location selection, and diversified revenue streams. Lower margins often indicate newer operations still optimizing processes, higher-cost locations, or suboptimal equipment efficiency.
Net margin stability depends heavily on consistent customer volume and effective expense management throughout seasonal fluctuations and economic cycles.
How do margins evolve with scale and when do economies kick in?
Economies of scale begin materializing at 2-3 locations or 150+ machines, with multi-location operators typically achieving 10-15% cost savings through bulk purchasing and shared administrative functions.
Single-location operations often struggle with fixed cost absorption, particularly during slower periods or seasonal downturns. Adding a second location allows owners to spread administrative costs, insurance premiums, and management time across multiple revenue streams, improving overall margin performance.
Bulk equipment purchasing becomes advantageous at 3+ locations, with manufacturers offering 15-25% discounts on large orders. Utility negotiations, maintenance contracts, and supply purchasing also benefit from increased volume leverage. Shared marketing campaigns and cross-location customer referrals further enhance revenue per dollar spent.
However, scaling requires careful market analysis and capital management. Rapid expansion can strain cash flow and management attention, potentially reducing margins if operational quality suffers. Successful multi-location operators typically maintain 25-35% margins compared to 20-30% for single locations through improved operational efficiency and cost leverage.
We cover this exact scaling strategy in the laundromat business plan.
What are the best practices for improving profitability in laundromat operations?
The most effective profitability strategies focus on reducing utility costs, optimizing staffing efficiency, implementing customer retention programs, and diversifying revenue streams.
- Digital Payment Implementation: Reduces cash handling costs by 15-20% while attracting tech-savvy customers who typically spend 12-18% more per visit
- Energy Efficiency Upgrades: High-efficiency machines and LED lighting can reduce utility costs by 25-40%, with utility company rebates offsetting upgrade costs
- Optimized Staffing Models: Part-time attendants during peak hours (evenings, weekends) maximize labor efficiency while maintaining customer service quality
- Loyalty Program Development: Card-based systems increase customer retention rates by 25-35% and average spending by 12-18% through rewards and convenience
- Service Mix Expansion: Adding wash-and-fold, pickup/delivery, and premium cycle options can increase revenue per customer by 30-50%
What is the average upfront investment and typical ROI timeline?
The average upfront investment for a new laundromat ranges from $200,000 to $500,000, with typical ROI timelines of 3-5 years for well-positioned operations.
Equipment costs represent the largest investment component, typically $150,000-300,000 for 40-80 machines including installation. Build-out expenses for plumbing, electrical, HVAC, and interior improvements add $30,000-100,000 depending on space condition and local construction costs. Permits, licenses, and professional fees contribute another $10,000-25,000 to initial expenses.
Working capital requirements for initial marketing, supplies, and operating expenses during the ramp-up period typically demand $15,000-40,000 additional investment. Many operators also maintain 3-6 months of operating expense reserves to weather initial cash flow challenges.
ROI calculations depend heavily on location quality, competition levels, and operational efficiency. Prime urban locations with limited competition often achieve 3-year payback periods, while suburban or competitive markets may require 4-6 years. Cash flow typically turns positive within 6-18 months as customer base stabilizes and operational efficiency improves.
It's a key part of what we outline in the laundromat business plan.
How do seasonal variations and demographics affect profit margins?
Seasonal variations typically create 15-25% revenue swings, with winter months generating higher volumes due to heavy clothing and comforter washing, while summer sees increased competition from outdoor drying options.
Urban areas with high concentrations of renters, students, and young professionals provide the most stable year-round demand. These demographics lack in-home laundry facilities and generate consistent weekly usage patterns regardless of seasonal changes. College towns experience pronounced seasonal fluctuations tied to academic calendars.
Successful operators adjust their strategies seasonally by promoting bulk washing services during winter months and emphasizing convenience and speed during summer periods. Winter promotions for comforters, sleeping bags, and heavy coats can increase average ticket sizes by 30-40% compared to summer loads.
Demographic targeting affects service mix decisions significantly. Young professionals respond well to pickup/delivery and wash-and-fold services, while families with children prioritize large-capacity machines and evening/weekend availability. Senior customers often prefer daytime hours and appreciate staffed locations for assistance and security.
Weather patterns also influence daily operations, with rainy periods generating 20-30% higher volumes as customers seek alternatives to line drying.
What are the most profitable machines and services individually?
| Machine/Service Type | Monthly Profit Contribution | Profitability Factors |
| Large-Capacity Washers | $400 - $1,200 | 40% higher revenue per cycle, premium pricing for oversized loads |
| Standard Washers | $270 - $600 | High utilization rates, consistent demand, lower operating costs |
| High-Efficiency Dryers | $250 - $550 | Lower utility costs, faster cycle times increase turnover |
| Wash-and-Fold Service | $1,290 - $1,500 | 25-40% of total revenue, 30% margins after labor costs |
| Detergent Vending | $150 - $400 | High margins (60-80%), convenience factor drives sales |
| Pickup/Delivery | $500 - $1,200 | Premium pricing, minimal additional overhead costs |
| Snack/Beverage Vending | $50 - $150 | Impulse purchases during wait times, passive income |
Conclusion
Coin laundry businesses offer attractive profit margins of 20-35% for operators who understand the key performance drivers. Success depends on optimizing machine utilization, controlling operating expenses, and developing diversified revenue streams beyond basic wash-and-dry services.
The most profitable operations combine efficient equipment, strategic location selection, and value-added services to maximize revenue per customer visit. Understanding the financial fundamentals outlined in this guide provides the foundation for building a sustainable and profitable laundromat business.
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
The laundromat industry continues evolving with new technology and changing customer expectations.
Understanding these profit margin fundamentals helps entrepreneurs make informed decisions about entering this stable service business.
Sources
- Turns App - Laundromat Monthly Earnings
- FabKlean - Laundromat Revenue Analysis
- Laundromat Resource - Revenue Potential
- The Laundry Boss - Profit Potential Guide
- Martin Ray - Key Laundromat Statistics
- Upflip - Laundromat Earnings Guide
- FinModelsLab - Operating Costs Analysis
- Planet Laundry - Managing Margins
- United Capital Source - Startup Costs
- Sharp Sheets - Laundromat Profitability