Laundromat ROI If you're wondering how much profit you can make from a laundromat business, the answer is a high return on investment (ROI). Laundromats can net around 20-35%, while other businesses typically see only 10-15% ROI.
High Return on Investment
The typical return on investment (ROI) for laundromats ranges from 20% to 30%.
Answer: Monthly profits can vary widely based on the location, size, and operational efficiency of the laundromat. On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.
If you keep the laundromat clean, the machines in good order, and offer good customer service, chances are you'll see between 20-35% ROI (return on investment).
The cost of equipment required to start a laundromat varies from around $20K to as much as $500K or more. Initial startup costs can be quite significant for a seemingly 'set-and-forget' kind of operation. However, the lack of required labor once a startup is complete can outweigh the cost of starting a laundromat.
Entrepreneurs normally spend between $100K and $1 million to start a new laundromat or buy a laundry business for sale. Dave suggests that you should normally spend between two and five times revenue, but that you should base your business valuation on what it's worth to you.
We talked to the Laundromat Millionaire, Dave Menz, who owns four laundromats and makes nearly $2 million annually. He even helps other business owners navigate the industry to get more customers, become a full-service laundromat, and outshine absentee owners.
On a typical scale, launching a laundromat will set you back anywhere from $200,000 to $500,000. Your financial footprint hinges on whether you're breathing new life into an existing establishment or embarking on a ground-up venture, coupled with the prevailing real estate climate in your locale.
You're able to set your own hours and it's highly unlikely you'll have to be at your store 40 hours per week, especially once you get the hang of running your business. Some investors even work another full-time job or use additional time to pursue a hobby more seriously.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins. But whether or not your laundromat can meet (or exceed) these industry standards depends on some important factors.
Yes, a laundromat is a vital community resource that generates lots of cash flow and can have profit margins up to 50%. In addition, the business offers lots of flexibility and has the ability to become a passive income play. You can also use the assets from a laundromat to invest in more small businesses.
Recession Resistant
Laundromats tend to be profitable even in an economic downturn. During a recession, more people will turn to self-service laundry rather than outsourced laundry or dry cleaning.
ROI is the metric that reveals the health of your car wash investment. The equation is quite simple: Divide your net profit by your initial investment and multiply it by 100.
According to the Coin Laundry Association, laundromats in the U.S. generate $5 billion in annual revenue and have a 95% success rate over five years—a significantly higher survival rate compared to other small businesses. Laundromats provide an essential service, making them recession-proof.
Laundry pickup and delivery model has seen rapid growth, especially post-pandemic, and now represents about 40% of the organized laundry market. Initial investments range from ₹10-20 lakhs ($12,000-$24,000 USD), with potential monthly revenues of ₹1.5-3 lakhs ($1,800-$3,600 USD).
A coin-operated laundromat can be a profitable business, but there's also a high risk of it attracting thieves. You'll also need to keep cash on hand to provide customers with change for the washers and dryers.
For example, if you have 20 machines, used 50% of the time (18 hours a day) and at an average rate of $5.00 per wash (30min per wash), daily revenue is ~$1,080. Now, assuming your laundromat is open 7 days a week, monthly revenue is $32,400.
The profit margin in a laundry and dry cleaning business typically ranges from 15% to 30%, depending on factors like location, services offered, and operational efficiency.
Finance, law, real estate, health care, and software development are among the most profitable industries in the US. If you're looking to make as much money as possible, consider starting a legal services business, a brokerage, a health care company, or a software-based venture like a virtual assistant business.