This article was written by our expert who is surveying the industry and constantly updating the business plan for a laundromat.
Opening a laundromat requires significant upfront investment, with total startup costs typically ranging from $200,000 to $500,000 for a mid-sized facility.
Success in the laundromat industry depends heavily on understanding these costs upfront and budgeting appropriately for both initial setup and ongoing operations. The laundromat business model offers steady cash flow potential, but the high capital requirements make careful financial planning essential from day one.
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.
Opening a laundromat typically costs between $200,000 and $500,000, with equipment and renovations representing the largest expenses.
Monthly operating costs range from $7,200 to $27,000, depending on location, size, and staffing decisions.
| Expense Category | Typical Range (USD) | Key Details |
|---|---|---|
| Equipment (Washers/Dryers) | $60,000 – $500,000 | 10-100+ machines depending on size |
| Renovations/Buildout | $20,000 – $100,000+ | Plumbing, electrical, ventilation |
| Lease Deposit/Upfront Rent | $10,000 – $30,000 | First/last months + security deposit |
| POS/Card/Coin Systems | $5,000 – $20,000 | Modern payment processing essential |
| Permits/Licenses/Insurance | $3,000 – $10,000 | Annual insurance $2,000-$5,000 |
| Working Capital | $20,000 – $50,000 | 6-12 months operating expenses |
| Total Startup Investment | $200,000 – $500,000+ | Premium locations can exceed $1M |
How much does it typically cost in total to open a laundromat, including all major setup expenses?
Opening a laundromat typically requires a total investment of $200,000 to $500,000 for a standard mid-sized facility.
This range covers all essential startup expenses including equipment, renovations, permits, and initial working capital. Smaller operations might start at around $150,000, while premium locations or larger facilities can exceed $1 million in total startup costs.
The equipment represents the largest single expense, accounting for 30-60% of your total investment. Commercial washers and dryers alone can cost between $60,000 and $500,000 depending on the number and quality of machines you choose.
Renovation and buildout costs typically range from $20,000 to $100,000, covering essential infrastructure like plumbing, electrical systems, and ventilation. These costs vary significantly based on the condition of your chosen space and local labor rates.
You'll find detailed market insights in our laundromat business plan, updated every quarter.
What are the average lease or purchase costs for a commercial space suitable for a laundromat?
Monthly lease costs for laundromat spaces typically range from $1,500 to $7,000, depending on location, size, and local market conditions.
Most new laundromat owners choose to lease rather than purchase, as this reduces initial capital requirements. Lease deposits usually range from $10,000 to $30,000 upfront, covering first and last month's rent plus security deposits.
For those considering purchasing, commercial properties suitable for laundromats typically cost $200,000 to $1,000,000 or more. The price depends heavily on location, with urban areas commanding premium prices compared to suburban or rural locations.
Standard laundromat spaces range from 2,000 to 5,000 square feet. You should budget approximately $200 to $300 per square foot for total buildout costs, including both the space preparation and equipment installation.
Location is critical for laundromat success, so prime spots with high foot traffic, adequate parking, and good visibility will command higher rents but often justify the cost through increased revenue potential.
How much do commercial washers and dryers cost, and how many are generally required to start?
| Equipment Type | Cost Range | Typical Quantity | Total Investment |
|---|---|---|---|
| Commercial Washers | $1,500 – $7,500 each | 10-50 units | $15,000 – $375,000 |
| Commercial Dryers | $1,000 – $6,500 each | 10-50 units | $10,000 – $325,000 |
| Large Capacity Washers | $4,000 – $12,000 each | 2-8 units | $8,000 – $96,000 |
| Large Capacity Dryers | $3,500 – $10,000 each | 2-8 units | $7,000 – $80,000 |
| Installation Costs | 10-20% of equipment | Per facility | $6,000 – $100,000 |
| Small Laundromat Total | - | 10-20 machines | $60,000 – $150,000 |
| Large Laundromat Total | - | 40-100+ machines | $200,000 – $500,000+ |
What are the renovation and construction costs to install plumbing, electrical, and ventilation systems?
Renovation and construction costs for laundromat infrastructure typically range from $20,000 to $100,000, depending on the existing condition of your space.
Plumbing and electrical upgrades represent the largest portion of renovation costs, usually ranging from $20,000 to $100,000. This includes installing adequate water supply lines, drainage systems, and electrical capacity to handle multiple commercial machines operating simultaneously.
Ventilation systems for dryers typically cost between $5,000 and $20,000, including ductwork and exhaust systems. Proper ventilation is crucial for customer comfort and equipment longevity, making this a non-negotiable expense.
General renovations including flooring, lighting, restrooms, and interior buildout can add another $20,000 to $100,000 to your budget. The final cost depends on your design goals and the current condition of the space.
Local building codes and permit requirements can significantly impact renovation costs, so it's essential to factor in compliance expenses and potential code upgrades when budgeting for your laundromat construction project.
What are the expected costs for obtaining permits, licenses, and insurance specific to a laundromat business?
Permits and licenses for a laundromat business typically cost between $1,000 and $5,000, covering business registration, building permits, utility permits, and safety compliance.
Business licenses and permits vary by location but generally include a general business license, building permits for renovations, utility connection permits, and potentially environmental permits for water usage and drainage.
Insurance costs for laundromats range from $2,000 to $5,000 annually, covering general liability, property insurance, and workers' compensation if you plan to hire employees. This investment protects against customer injuries, equipment damage, and business interruption.
Professional and legal fees for setup typically add another $2,000 to $7,000 to your startup costs. These expenses cover legal consultation, accounting setup, and potentially consulting services to navigate local regulations.
Some locations may require additional permits for water reclamation systems, environmental compliance, or specific zoning approvals, which can add to your permit costs but are necessary for legal operation.
How much should be budgeted for initial utility connections and monthly utility deposits?
Initial utility connection fees and deposits typically range from $5,000 to $20,000, covering water, electricity, gas, and sewer connections.
Water and sewer connections often represent the largest utility setup cost, as laundromats require high-capacity water lines and drainage systems. Electric service upgrades may also be necessary to handle the power requirements of multiple commercial machines.
Monthly utility deposits are usually required by utility providers and typically range from $1,000 to $5,000 total, based on projected monthly usage. These deposits are often refundable after establishing a payment history with the utility companies.
Ongoing monthly utility costs will be substantial, typically ranging from $2,000 to $6,000 per month for water, electricity, and gas combined. These operating costs should be factored into your business model and pricing strategy.
This is one of the strategies explained in our laundromat business plan.
What are the upfront costs for point-of-sale systems, card readers, or coin dispensers?
Point-of-sale systems and payment processing equipment typically cost between $5,000 and $20,000 for a complete laundromat setup.
Modern POS systems range from $2,000 to $10,000 upfront, though many providers offer subscription models at $75 to $300 per month. These systems manage customer transactions, track machine usage, and provide valuable business analytics.
Card reader systems for individual machines typically cost $5,000 to $15,000 for a full facility installation. These systems are increasingly popular as customers prefer cashless transactions, and they can increase revenue through convenience and impulse usage.
Coin dispensers and change machines cost approximately $1,500 to $3,000 each. While cash usage is declining, having coin change availability remains important for customers who prefer traditional coin-operated machines.
Modern payment systems often integrate with mobile apps and loyalty programs, providing additional revenue opportunities and customer retention benefits that justify the initial investment cost.
What are the estimated startup costs for furniture, signage, and interior design elements like folding tables and seating?
Furniture, signage, and interior design elements typically cost between $17,000 and $85,000 for a complete laundromat setup.
Essential furniture including folding tables, seating areas, and laundry carts typically costs $5,000 to $20,000. Quality furniture improves customer experience and encourages longer visits, potentially increasing revenue from additional services.
Professional signage including exterior signs, interior wayfinding, and machine instructions typically costs $2,000 to $5,000. Clear, attractive signage is essential for customer navigation and brand recognition in your local market.
Interior design and décor elements range from $10,000 to $60,000 depending on your target market and desired atmosphere. Modern, clean designs attract customers and can justify premium pricing for your services.
Additional amenities like vending machines, Wi-Fi setup, security systems, and children's play areas can add significant value but require additional upfront investment that should be considered in your total startup budget.
What is the typical cost for hiring professionals such as contractors, engineers, or consultants during the setup phase?
Professional services during laundromat setup typically cost between $12,000 and $60,000, depending on project complexity and local market rates.
Contractor and engineer fees range from $10,000 to $50,000 for design, permitting, and buildout management. These professionals ensure your renovation meets building codes and efficiently accommodates your equipment layout.
Business consultants specializing in laundromat operations may charge $2,000 to $10,000 for setup guidance. These experts help with site selection, equipment specification, and operational planning that can significantly impact long-term profitability.
Architect and design fees may be necessary for significant renovations, adding $5,000 to $20,000 to your professional services budget. Proper design maximizes space efficiency and creates an attractive customer environment.
Legal and accounting professionals typically charge $2,000 to $7,000 for business formation, contract review, and financial system setup. These services ensure proper legal compliance and financial management from day one.
What is the expected monthly operating cost, including rent, utilities, maintenance, and staffing?
| Operating Expense | Monthly Range | Details and Considerations |
|---|---|---|
| Rent/Lease | $1,500 – $7,000 | Location, size, and market conditions determine costs |
| Utilities (Water, Electric, Gas) | $2,000 – $6,000+ | Largest variable cost, depends on machine usage |
| Payroll (if staffed) | $2,000 – $5,000 | Attendant wages, benefits, part-time vs full-time |
| Maintenance/Repairs | $500 – $5,000 | Equipment service, building upkeep, emergency repairs |
| Insurance | $200 – $500 | Monthly portion of annual premium |
| Supplies | $500 – $2,000 | Cleaning supplies, soap dispensers, maintenance materials |
| Marketing/Miscellaneous | $500 – $1,500 | Advertising, business expenses, professional services |
| Total Monthly Operating | $7,200 – $27,000+ | Typical range for standard laundromat operations |
How much working capital is recommended to cover the business until it reaches profitability?
Working capital of $20,000 to $50,000 is typically recommended to cover laundromat operations until the business reaches consistent profitability.
This working capital covers 6-12 months of operating expenses including payroll, utilities, supplies, and unexpected costs during the initial ramp-up period. New laundromats often take 6-18 months to reach full capacity and consistent cash flow.
The exact amount needed depends on your monthly operating costs, local market conditions, and how quickly you expect to build customer base. Higher-cost locations require larger working capital reserves to weather the initial low-revenue period.
Emergency repair funds should be included in working capital, as equipment breakdowns can significantly impact revenue and require immediate attention. Setting aside funds for major repairs prevents cash flow disruptions during critical growth periods.
We cover this exact topic in the laundromat business plan.
What are the potential financing options and what down payment or collateral is usually required?
Laundromat financing typically requires a 20-40% down payment of the total project cost, with various financing options available for qualified borrowers.
Traditional bank loans and SBA loans are common financing methods for laundromat startups. SBA loans often offer better terms and lower down payment requirements, making them attractive for first-time business owners with limited capital.
Equipment financing is available through many commercial equipment vendors, often with competitive rates and terms. This option allows you to finance equipment separately from real estate and renovation costs, potentially improving overall financing terms.
Collateral typically includes the laundromat equipment, business assets, and potentially personal guarantees from the business owners. Lenders view laundromat equipment as good collateral due to its resale value and essential nature to the business.
Some franchise opportunities require minimum liquid capital of $75,000 to $300,000, but may offer better financing assistance and proven business models that can improve loan approval chances with traditional lenders.
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.
Opening a laundromat requires substantial upfront investment, but the potential for steady cash flow and strong returns makes it an attractive business opportunity for many entrepreneurs.
Success depends on careful planning, proper budgeting, and understanding all the costs involved before committing to this capital-intensive venture.
Sources
- TryCents Laundromat Cost Analysis
- Swoop Funding Laundromat Business Guide
- NerdWallet Laundromat Cost Guide
- NorthOne Laundromat Startup Costs
- United Capital Source Startup Costs
- Growthink Laundromat Startup Cost
- Wix Laundromat Business Guide
- Automatic Growth Monthly Costs
- Upmetrics Laundromat Startup Costs
- Huebsch Laundromat Opening Costs