Vending Machine Calculator

It depends almost entirely on sales per day. In our example, a machine selling 8 items a day at $2 brings in $486 a month and keeps about $159 after product, commission and upkeep. A machine in a busy spot that sells 20 a day at the same costs keeps about $487 a month. One in a slow spot that sells 3 a day barely covers its costs.

They can be, at the right locations. The example route of 5 machines earns $794 a month and returns 65.1% a year on $17,500. But the margins are thin: product cost and commission take 55% of every sale here. Weak locations, theft and broken machines can erase the profit, so test a location with one machine before you add more.

A new snack or drink machine with a card reader often costs $3,000 to $7,000. Used machines can cost $1,000 to $2,500, and combo or healthy-food machines with fresh food can cost more than $10,000. Add the first load of stock, the card reader and its monthly fee, and any delivery or setup charges.

Divide the machine's cost by its monthly profit. The example's machines cost $3,500 each and keep about $159 a month each, so they pay back in 23 months. A machine that sells 12 items a day pays back in 14 months. If payback looks longer than 3 or 4 years, the location probably isn't busy enough.

At the example's numbers, each machine keeps $1,907 a year, so you'd need about 53 machines. At 20 sales a day per machine, about 18 would do it. Remember that a route of 50 machines is a full-time job, so your time becomes a real cost.

Many locations ask for 5% to 25% of sales, and some busy ones ask for a flat monthly fee. Small offices often take nothing, because the machine is a perk for staff. In the example, a 10% commission costs $243 a month. Cutting it to 0% raises profit from $794 to $1,038.

After product cost and commission, many operators keep 20% to 40% of sales before their own time. The example keeps 32.7%. Drinks often carry better markups than snacks, and fresh food carries the best but spoils. Raise prices in small steps, because a $0.50 increase adds $274 a month to the example route.

Cold drinks, chips, candy and energy drinks are the steady sellers in most places. Offices and gyms often want healthier options, and schools may have rules on what you can sell. Track sales by slot, and swap slow items each month.

Most places require a business license and a sales tax permit, and some cities and states require a vending license or a permit sticker on each machine. Food-handling rules apply if you sell fresh food. Check with your city, county and state before you place your first machine.

A route for sale should come with real sales records. Enter its machines, sales and costs above to see the profit and payback. Sellers often price routes at a multiple of yearly profit, so a route that keeps $9,500 a year might sell for $15,000 to $25,000. Ask for at least 6 months of sales by machine, and visit the locations before you buy.

Yes. A route that earns $794 a month on 8 hours a week pays you about $23 an hour, before you account for gas and your vehicle. If you'd hire someone to restock instead, add their pay to the monthly cost per machine and see what's left.