Laundromat Calculator

Many laundromats keep 20% to 35% of their sales as profit before the owner's pay, but it varies with size and rent. The example brings in $175,104 a year in sales and keeps $62,083, a 35.5% margin. A store with 20 machines at the same turns, prices and fixed costs would lose $663 a month, because rent and other fixed costs don't shrink with the store.

Buying an existing store often costs $200,000 to $1 million, depending on size, equipment age and lease. Building a new one can cost $500,000 or more, because commercial washers and dryers, plumbing, venting and build-out are expensive. Enter the full price, including working capital, as the start-up cost above.

A turn is one use of a machine. If a washer runs 3 loads a day, it has 3 turns a day. Many stores average 3 to 5 turns a day on washers, and busy ones go higher. The example uses 3 turns across 40 machines, or 120 loads a day.

Divide what you paid by the monthly profit. The example pays $300,000 and keeps $5,174 a month, so it pays back in 58 months, or 4 years 10 months. At 4 turns a day, it pays back in 2 years 10 months. Many buyers look for 3 to 6 years.

They're less work than many businesses, but not passive. You still handle repairs, cleaning, cash, customer issues and staff. The example assumes 15 hours a week of your time, which works out to about $80 an hour. Card-only machines, remote monitoring and a manager can cut your hours, but add their cost to the monthly costs.

Prices vary widely by city. Top-load washers often cost $3 to $5 a load, large front-loaders $6 to $12, and dryers $0.25 to $0.50 for each few minutes. Enter an average price across all machines. The example uses $4.

Rent is usually the biggest fixed cost, followed by repairs, insurance and any staff. Water, sewer, gas and power scale with every load. In the example, utilities cost $2,918 a month and fixed costs $6,500. A long lease with fair increases matters, because a rent hike can wipe out the profit.

Many sell for a multiple of yearly cash flow, often about 3 to 6 times, adjusted for equipment age and lease terms. The example's $300,000 price is 4.8 times its $62,083 yearly profit. Check the lease length first. A store with only 2 years left on its lease is worth much less.

Many buyers use an SBA 7(a) loan or equipment financing. A loan lowers your cash up front but adds a monthly payment. Add the payment to the monthly costs above, and enter only your down payment as the start-up cost, to see the return on your own cash.

Compare the yearly figure with what you could earn elsewhere for the same risk and work. The example returns 20.7% a year over 10 years, counting a $150,000 sale at the end. A store returning less than 10% a year may not be worth the time, the lease risk and the equipment wear.