Starting a laundromat from scratch involves scouting a high-traffic location without in-home laundry, securing \\$200,000 to \\$1,000,000 in financing, and purchasing heavy-duty commercial equipment. It requires dealing with complex zoning laws and utility infrastructure before you can open a clean, profitable facility.
Building a laundromat from scratch typically costs between $250,000 and $1,000,000+. Because you are building from the ground up, you can generally expect to pay $200 to $400+ per square foot.
While not legally required, there's a compelling case for starting your laundromat as a limited liability company (LLC). Not only does this choice bring added credibility to your enterprise, but it also offers protections that can be especially beneficial given the unique challenges that come with running a laundromat.
Yes, opening a laundromat can be highly profitable. The industry boasts a 95% survival rate over five years, high returns on investment (20% to 35%), and an average net profit of $3,000 to $10,000 per month. However, initial costs are steep.
Cleaning Up After Yourself is Proper Laundromat Etiquette
That means keeping your clothes organized, folding them neatly where possible, discarding lint or fabric softener sheets properly, wiping down machines after use, and cleaning up any spills. Also, be sure to take all your clothes with you when you leave.
Laundromats face unique vulnerabilities due to their layout, equipment, and hours of operation: Fire: With numerous electrical appliances and dryers in use daily, the risk of fire is significant.
Yes, it is possible, but not directly from inside a properly functioning washing machine. The combination of water, soap, and agitation makes the wash cycle highly hazardous to bed bugs.
Owning a laundromat requires a massive upfront investment, constant maintenance, and high utility bills. It is also highly susceptible to location risks and is not a truly passive income source.
A laundromat typically generates between $15,000 and $30,000 in monthly gross revenue, which translates to a net profit of roughly $𝟑,𝟎𝟎𝟎 to $𝟏𝟎,𝟎𝟎𝟎 per month. Profit margins usually hover between 20% and 35% after factoring in utilities, rent, and maintenance.
Starting a laundromat with no money requires acquiring an existing, cash-flowing business or starting a mobile laundry service instead of building a new brick-and-mortar location. You can bypass upfront capital by using seller financing, private investors, or 100% equipment financing.
The majority of states exempt self-service laundry from their sales tax. 42 out of 45 of the states that levy a general sales tax exempt self-service laundry from the tax. Only three states charge sales tax on self-service laundry (Hawaii, New Mexico and West Virginia).
Generally, we recommend buying a laundromat for immediate cash flow and less startup efforts, and building new to gain full brand control and a custom setup. While you don't need decades of industry experience to buy or build a laundromat, you will need help from an expert team like Martin-Ray Laundry.
Here they are again:
Laundromats boast a remarkable 95% success rate over their first five years of operation. This resilience makes them one of the most stable small business investments, primarily because clean laundry is an essential, recession-proof necessity.
General Liability Insurance Costs
General liability covers customer injuries or property damage at your laundromat. Average premiums: Small laundromat: $400–$700/year. Medium laundromat: $700–$1,500/year.
The Bottom Line
Running a laundromat 24 hours a day can be a great option—but it's not automatically the right choice for every store. Success depends on location, local regulations, security planning, and your ability to manage access effectively. For some owners, 24-hour operation unlocks meaningful opportunity.
Laundromat Revenue vs Operation Costs: What to Expect
Washers and dryers are the heart of any laundromat, and they need regular care to continue running smoothly. What sort of care are we talking about? Cleaning lint traps, replacing worn belts, checking hoses for leaks, lubricating moving parts, and much more.
Size of the Laundromat
For example: Small laundromat (10-20 machines): Typically earns around $30,000 to $100,000 in annual gross revenue. Medium laundromat (20-40 machines): Can bring in $100,000 to $250,000 in gross revenue per year.
Yes, you can get bed bugs from a laundromat, though it is relatively uncommon. The risk exists because people with infestations often use shared facilities. Bugs can transfer from infested clothing to communal baskets, folding tables, or the inside of machines before the cycle starts.
Let's break down the five most common laundry mistakes and how to avoid them—so your clothes look better, last longer, and feel fresher.
The temperature in dryers can typically range from 120° to 160°F across varying cycles and platforms. There are some commercial dryers that can get as high as around 176°F.
The most effective way to kill bed bugs in the laundry is through heat. Bed bugs and their eggs cannot survive temperatures above 122∘𝐹 (50∘𝐶).
Yes, using a laundromat is generally very sanitary. Because commercial machines constantly run hot water, detergent, and rinse cycles, their interiors are often cleaner than residential washers. However, shared spaces aren't sterile, and a few best practices will ensure your laundry remains perfectly hygienic.