This article was written by our expert who is surveying the industry and constantly updating the business plan for a laundromat.
Our business plan for a laundromat will help you build a profitable project
Running a laundromat involves significant monthly costs that can range from $8,000 to $29,000.
The biggest expenses are rent and utilities, which together can account for 40-60% of your total operating costs. You'll need to budget carefully for everything from equipment maintenance to employee payroll.
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.
Operating a laundromat requires monthly expenses ranging from $8,000 to $29,000, with yearly costs between $96,000 and $348,000.
The largest expenses are rent ($2,000-$10,000/month) and utilities ($2,000-$9,000/month), followed by payroll, maintenance, and supplies.
| Expense Category | Monthly Range (USD) | Key Details |
|---|---|---|
| Rent/Mortgage | $2,000 - $10,000 | Largest fixed expense; urban areas cost more |
| Utilities (Water, Electric, Gas) | $2,000 - $9,000 | 15-40% of operating costs; water is biggest utility expense |
| Equipment Maintenance | $300 - $2,000 | Regular maintenance prevents costly emergencies |
| Payroll | $2,000 - $10,000 | Self-service needs less staff than full-service |
| Supplies | $200 - $1,500 | Detergents, softeners, cleaning products |
| Insurance | $100 - $300 | Liability, property, workers' comp coverage |
| Reserve Fund | $500 - $2,000 | 5-10% of revenue for emergencies |
What's the complete monthly and yearly cost breakdown for running a laundromat?
Running a laundromat typically costs between $8,000 and $29,000 per month, or $96,000 to $348,000 annually.
These costs vary significantly based on your location, the size of your facility, and whether you operate a self-service or full-service model. Urban laundromats in high-traffic areas will face higher rent and utilities but may also generate more revenue.
The breakdown includes fixed costs like rent and insurance that remain relatively stable each month, and variable costs like utilities and supplies that fluctuate with customer volume. Labor costs depend heavily on your service model - self-service laundromats can operate with minimal staff while full-service operations require more employees.
Smart budgeting means understanding each expense category and allocating funds appropriately. Most successful laundromat owners also maintain a reserve fund equal to 5-10% of monthly revenue for unexpected repairs or equipment replacement.
You'll find detailed market insights in our laundromat business plan, updated every quarter.
How much do laundromat owners typically spend on rent or mortgage each month?
Monthly rent for a laundromat ranges from $2,000 to $10,000, with most operators paying between $2,000 and $6,000.
Location is the primary factor determining rent costs. A 2,000-square-foot laundromat in a suburban strip mall might cost $2,000-$3,500 per month, while the same size facility in a busy urban area could command $7,000 or more. High-traffic locations near apartments, colleges, or transit hubs typically charge premium rates.
Lease terms for laundromats often include triple net (NNN) agreements where you'll pay base rent plus property taxes, insurance, and maintenance. Some landlords offer percentage leases where rent adjusts based on your revenue - typically a base rent plus 3-6% of gross sales above a certain threshold.
When evaluating locations, consider that rent should ideally represent 15-25% of your projected gross revenue. A location with $3,000 monthly rent should generate at least $12,000-$20,000 in monthly revenue to maintain healthy profit margins.
What are the typical monthly utility costs for water, electricity, gas, and sewer?
Combined utility costs for a laundromat range from $2,000 to $9,000 monthly, representing 15-40% of total operating expenses.
| Utility Type | Monthly Cost Range | Details & Factors |
|---|---|---|
| Water | $1,000 - $5,000 | Largest utility expense; depends on machine efficiency and local rates |
| Electricity | $1,500 - $6,000 | Powers washers, dryers, lighting, and HVAC systems |
| Gas | $500 - $2,000 | Primarily for dryers and hot water heating |
| Sewer | Varies | Often included in water bill; can be separate charge |
| Trash/Recycling | $100 - $300 | Additional utility often overlooked in budgeting |
Water represents your highest utility cost because each wash cycle uses 15-40 gallons depending on machine age and efficiency. Modern high-efficiency machines can reduce water usage by 35-50%, significantly lowering monthly bills.
This is one of the strategies explained in our laundromat business plan.
How much should I budget monthly for equipment maintenance and repairs?
Budget $300 to $2,000 monthly for equipment maintenance and repairs, with most laundromats spending $500-$1,500.
Preventive maintenance is crucial for minimizing downtime and extending equipment life. Regular tasks include cleaning lint filters, checking belts and hoses, lubricating bearings, and calibrating water levels. Many owners schedule professional maintenance quarterly at $200-$400 per visit.
Common repairs include replacing door locks ($50-$150), water valves ($100-$300), pumps ($200-$500), and control boards ($300-$800). Older machines require more frequent repairs - equipment over 10 years old typically needs 40% more maintenance spending than newer models.
Creating a maintenance schedule and keeping detailed records helps predict future costs. Track each machine's repair history to identify units that may need replacement. Most successful operators also maintain relationships with multiple repair technicians to ensure quick response times.
What do laundromat supplies like detergents and vending products cost monthly?
Monthly supply costs range from $200 to $1,500, with medium-sized laundromats typically spending $500-$1,000.
Essential supplies include:
- Laundry detergent ($200-$500) - bulk purchasing reduces per-unit costs
- Fabric softener ($100-$300) - optional but increases customer satisfaction
- Bleach and stain removers ($50-$150) - for customer purchases or wash-and-fold services
- Cleaning supplies ($100-$250) - for maintaining facility cleanliness
- Vending products ($50-$200) - snacks, drinks, and single-use detergent packets
- Change machine supplies ($50-$100) - coin wrappers, bill straps, maintenance items
- Plastic bags and hangers ($75-$150) - for wash-and-fold or dry cleaning services
Buying supplies in bulk from wholesale distributors can reduce costs by 20-30% compared to retail prices. Many laundromats also generate additional revenue by selling individual detergent pods, dryer sheets, and laundry bags at marked-up prices.
How much do laundromats spend on employee payroll each month?
Monthly payroll costs range from $2,000 to $10,000 depending on your service model and hours of operation.
Self-service laundromats operating with minimal staff typically spend $2,000-$3,500 monthly. This covers a part-time attendant during peak hours (20-30 hours weekly at $15-$20/hour) plus occasional coverage. The attendant handles customer service, light cleaning, and basic troubleshooting.
Full-service laundromats offering wash-and-fold require more staff and spend $3,000-$10,000 monthly. This includes attendants for customer service, employees processing wash-and-fold orders, and potentially a manager. A typical full-service operation might employ 3-5 people working various shifts.
Labor costs also include payroll taxes (7.65% for employer's share), workers' compensation insurance, and any benefits offered. Some owners reduce costs by working shifts themselves, especially during the startup phase. Automated payment systems and security cameras can also reduce the need for constant staffing.
What are the typical monthly insurance costs for laundromat operations?
Monthly insurance costs range from $100 to $300, totaling $1,200 to $3,600 annually for comprehensive coverage.
| Insurance Type | Monthly Cost | Coverage Details |
|---|---|---|
| General Liability | $30 - $65 | Covers customer injuries, property damage, legal fees |
| Property Insurance | $40 - $100 | Protects equipment, building improvements, inventory |
| Workers' Compensation | $45 - $150 | Required if you have employees; based on payroll |
| Business Interruption | $25 - $50 | Covers lost income during forced closures |
| Equipment Breakdown | $30 - $75 | Covers repair/replacement of machinery breakdowns |
Insurance premiums vary based on location, claims history, and coverage limits. Urban areas with higher crime rates typically face higher premiums. Bundling policies with one insurer often provides 10-15% discounts.
We cover this exact topic in the laundromat business plan.
How much should I budget for marketing and customer acquisition?
Allocate $200 to $2,000 monthly for marketing, with most laundromats spending $500-$1,000 on promotional efforts.
Digital marketing represents the best return on investment for most laundromats. Google My Business optimization (free) and local SEO efforts help customers find you online. Paid Google Ads targeting "laundromat near me" searches typically cost $200-$500 monthly with good results.
Traditional marketing still works well for local businesses. Door hangers in nearby apartment complexes ($100-$300), loyalty card programs ($50-$150), and grand opening promotions ($500-$1,000) effectively attract new customers. Social media advertising on Facebook and Instagram costs $100-$300 monthly for targeted local campaigns.
Customer retention programs provide excellent value - punch cards offering a free wash after 10 visits cost little but encourage repeat business. Partnerships with local apartment managers, hotels, and Airbnb hosts can generate steady commercial accounts. Many successful laundromats also offer first-time customer discounts or free drying promotions.
What do payment systems and security technology cost monthly?
Technology costs range from $100 to $500 monthly for payment systems, software, and security equipment.
Modern payment systems are essential for customer convenience. Card reader systems cost $100-$300 monthly including transaction fees and maintenance. Mobile payment apps like PayRange or SpyderWash charge similar monthly fees plus 3-5% per transaction. Maintaining traditional coin mechanisms adds $50-$100 monthly for repairs and coin processing.
Security systems protect your investment and provide peace of mind. Basic camera systems with 4-8 cameras cost $50-$150 monthly for monitoring and cloud storage. Advanced systems with facial recognition and license plate readers run $200-$400 monthly. Many insurance companies offer premium discounts for monitored security systems.
Management software streamlines operations and costs $50-$100 monthly. These platforms track machine usage, monitor revenue, send maintenance alerts, and generate financial reports. Integration with payment systems provides real-time revenue tracking and helps identify peak usage times.
How much should I budget for cleaning and facility maintenance?
Budget $200 to $1,000 monthly for cleaning and facility upkeep, with medium-sized laundromats typically spending $500-$700.
Daily cleaning tasks include mopping floors, wiping machines, emptying trash, cleaning restrooms, and maintaining the parking lot. Many owners hire professional cleaning services for $200-$400 monthly (2-3 visits weekly) or employ part-time staff for daily cleaning. High-traffic locations require more frequent cleaning to maintain a welcoming environment.
Facility maintenance encompasses HVAC filter changes ($50-$100), plumbing repairs ($100-$300), electrical work ($100-$200), and painting or repairs ($100-$500). Annual deep cleaning including floor waxing and machine detailing typically costs $1,000-$2,000. Maintaining a clean, well-lit facility increases customer satisfaction and allows you to charge premium prices.
What are the licensing and permit costs for operating a laundromat?
Annual licensing and compliance costs range from $1,000 to $5,000, equivalent to $80-$400 monthly.
| License/Permit Type | Annual Cost | Requirements & Details |
|---|---|---|
| Business License | $50 - $500 | Basic requirement in all jurisdictions |
| Health Department Permit | $200 - $1,000 | Required for wash-and-fold services |
| Fire Department Permit | $100 - $500 | Annual inspection and compliance |
| Water/Sewer Permits | $200 - $1,500 | Based on water usage and local regulations |
| Signage Permits | $100 - $500 | One-time cost for exterior signs |
| Environmental Compliance | $300 - $1,000 | Wastewater and chemical handling requirements |
| Sales Tax License | $0 - $100 | Required if selling products |
Compliance costs vary significantly by location. Urban areas typically have stricter regulations and higher fees. Some jurisdictions require special permits for coin-operated businesses or impose additional environmental regulations for water usage.
How much should I save monthly for emergency repairs and equipment replacement?
Allocate $500 to $2,000 monthly to a reserve fund, ideally 5-10% of gross revenue.
Equipment emergencies happen without warning - a commercial washer replacement costs $800-$3,000, while dryers range from $1,000-$5,000. Major repairs like replacing a boiler system can cost $5,000-$15,000. Without adequate reserves, these expenses can cripple cash flow or force you to operate with reduced capacity.
Beyond emergency repairs, plan for scheduled equipment replacement. Commercial washers typically last 10-15 years with proper maintenance, while dryers can operate for 15-20 years. A 20-machine laundromat should plan to replace 1-2 machines annually, requiring $2,000-$6,000 in capital reserves.
It's a key part of what we outline in the laundromat business plan.
Smart operators also use reserves for opportunity investments - upgrading to high-efficiency machines, adding new services, or improving the facility. These improvements can significantly boost revenue and reduce operating costs, providing excellent return on investment.
Conclusion
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.
Running a successful laundromat requires careful financial planning and ongoing expense management.
By understanding these cost categories and budgeting appropriately, you'll be better prepared to operate profitably and handle unexpected challenges. Remember that these figures are averages - your actual costs will depend on your specific location, business model, and operational efficiency.
Sources
- Upmetrics - Laundromat Startup Costs
- Biz2Credit - Laundromat Opening Cost Guide
- Automatic Growth - Monthly Cost to Run a Laundromat
- FinModelsLab - Wash Fold Laundry Operating Costs
- TryCents - Laundromat Utility Costs
- Press Cleaners - Laundromat Statistics 2025
- Real Clean Group - Cost to Open a Laundromat
- Dojo Business - Laundromat Budget Consumables
- The Hartford - Business Insurance for Dry Cleaners
- NorthOne - Laundromat Cost