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What are the utility costs for a laundromat?

This article provides detailed information on the utility costs associated with operating a laundromat business. From electricity consumption to water usage, this guide will help you understand and manage the ongoing expenses for your laundromat.

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Utility expenses are one of the largest ongoing costs for laundromat owners. This section will give you an overview of the utility expenses you can expect, including electricity, water, natural gas, and more.

It's important to manage these costs effectively, as they can significantly impact your bottom line. Understanding how much you will pay each month can help you plan and budget accordingly.

Utility Expense Cost Range (Monthly) Factors Affecting Costs
Electricity $2,000 – $6,000 Size of laundromat, equipment efficiency, local electricity rates
Water $1,000 – $2,000 Number of washes, local water rates, type of machines
Natural Gas $500 – $1,500 Dryer usage, local gas rates
Sewer Included in water bill Local sewer rates, water usage
Total Utilities $2,000 – $6,000 Overall size, operational hours, equipment type
Electricity Percentage of Operating Costs 15% – 20% Equipment age, operational efficiency
Water Usage per Cycle 15–30 gallons Machine type, load size

What are the average monthly utility expenses for a laundromat of similar size and capacity?

Typical monthly utility costs for a laundromat range from $2,000 to $6,000.

The exact cost depends on factors like the size of the laundromat, the number of machines, and the efficiency of your equipment. Other variables include local utility rates and operational hours.

Smaller laundromats might see lower expenses, while larger operations with more machines and longer operating hours will experience higher costs.

How much electricity does a typical laundromat consume per month, and what is the cost per kilowatt-hour in this area?

Laundromats consume about 75,000 kWh annually, which translates to roughly 6,250 kWh per month.

The cost of electricity varies depending on the location, but the average commercial rate in the U.S. is approximately 13 cents per kWh. In Thailand, the rate is about 6.80 THB/kWh (approximately $0.18 USD per kWh).

In a typical laundromat, electricity costs can range from $2,000 to $6,000 per month, with electricity representing 15-20% of overall gross income for businesses with modern equipment.

What percentage of total operating costs does electricity usually represent for laundromat businesses?

Electricity typically accounts for 15-20% of a laundromat's gross revenue.

This percentage can be higher in older laundromats with less efficient equipment, while more energy-efficient setups reduce electricity costs.

The total utility costs, including water and gas, may represent up to 25-35% of the total operating costs for laundromats.

How much water is typically used per washing cycle, and how does that translate into monthly water bills?

A typical commercial washing machine uses between 15 to 30 gallons (57–114 liters) of water per cycle.

Water bills usually range from $1,000 to $2,000 monthly, depending on the number of cycles your laundromat runs and the local water rates.

In some cases, high-efficiency washers can reduce water consumption by 20-35%, lowering monthly costs.

What are the current commercial water and sewer rates per gallon or per cubic meter in this city?

In Thailand, commercial water rates are about 15-17 THB per cubic meter (1 m³ = 1,000 liters).

Additionally, sewer charges are typically equal to the water rates, but these can vary by municipality.

Rates will differ depending on the location, so it's crucial to check your local water provider for the exact pricing.

How much natural gas is needed to run dryers and water heaters, and what is the cost per therm or cubic meter?

Laundromat dryers are a major source of natural gas consumption.

Natural gas typically costs $0.80–$1.50 per therm in the U.S., but this varies by region.

For laundromats, the total monthly natural gas cost ranges from $500 to $1,500, depending on the number of dryers and how often they are used.

Are there any significant seasonal variations in utility costs throughout the year?

Yes, utility costs often spike during peak laundry seasons, which can vary depending on local climate and weather patterns.

In wet or rainy seasons, laundromats may experience increased customer volume, leading to higher water, gas, and electricity usage.

Cooler months might also see higher energy consumption for heating water and space, further increasing utility bills.

How do equipment type and efficiency (e.g., high-efficiency washers and dryers) affect utility consumption and costs?

High-efficiency machines use less water and energy, which directly reduces utility bills.

Upgrading to newer, more energy-efficient equipment can save 20-35% on water and energy costs, making it a worthwhile investment for reducing overall utility expenses.

In addition to cost savings, newer equipment can provide a more consistent and reliable service, improving customer satisfaction.

What utility cost differences exist between coin-operated, card-based, and fully automated laundromats?

The operational system (coin-operated, card-based, or fully automated) does not significantly affect the direct utility consumption of laundromat machines.

However, fully automated systems often allow better control over machine operation, potentially saving energy by turning off idle machines during off-peak hours.

Automated laundromats can also reduce labor costs, which indirectly benefits the overall cost structure of the business.

What local rebates or energy-efficiency programs are available to reduce electricity, gas, or water costs?

Many local utility providers offer rebates or incentives for businesses that upgrade to energy-efficient equipment or install water-saving systems.

These programs can help reduce the upfront cost of energy-efficient machines and fixtures, making them more affordable in the long run.

Check with local energy providers and government programs to find available rebates and financial assistance for upgrading equipment.

How do utility costs differ for a 24-hour laundromat compared to one with limited operating hours?

24-hour laundromats generally incur higher utility costs due to lighting, heating, and air conditioning needs during non-operational hours.

However, they can achieve lower utility costs per cycle, as more machines are in operation, which helps distribute the cost more evenly.

Laundromats with limited hours may save on overhead, but their cost per cycle might be higher due to fewer operational hours spreading fixed costs.

What benchmark or range of total utility costs per square foot or per machine should be expected for a profitable laundromat?

Profitable laundromats should aim to keep total utility costs within $0.20–$0.45 per square foot, or about $30–$85 per machine monthly.

Operating profit margins typically range from 25-35%, depending on location, equipment, and business model.

Properly managing utility costs while ensuring customer satisfaction can lead to a highly profitable laundromat operation.

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.

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