Laundromat Business Calculator: Revenue & Profit Projections

Behind the Charts: How I Calculate Your Numbers

Let me walk you through how I built the calculations that power the two main charts in this calculator. I wanted to make sure you can see exactly where your money is going and what kind of returns you might expect.

Monthly Operating Costs Chart

First, I create a pie chart that breaks down your monthly expenses. Here's a real-world example using typical numbers:

• Monthly utilities: $3,000 (think water, electricity, gas)
• Rent payment: $3,500
• Staff costs: $4,000
• Maintenance: $500
• Loan payment: $2,322 (based on a $200,000 loan at 7% for 10 years)

To figure out what percentage each expense represents in the pie chart, I divide each cost by the total monthly expenses ($13,322 in this example). So utilities would be $3,000 ÷ $13,322 × 100 = 22.5% of your monthly costs.

Total Monthly Costs = Utilities + Rent + Labor + Maintenance + Loan Payment
$13,322 = $3,000 + $3,500 + $4,000 + $500 + $2,322

Percentages:
Utilities: 22.5%
Rent: 26.3%
Labor: 30.0%
Maintenance: 3.8%
Loan Payment: 17.4%

Annual Performance Chart

The bar chart gives you four critical numbers that show how your laundromat might perform over a year. Here's how I calculate each one:

• Potential Revenue (Green Bar): I multiply your number of machines by average revenue per machine by 12 months. For example, with 60 machines earning $600 each per month: 60 × $600 × 12 = $432,000
• Actual Revenue (Light Green Bar): This is your potential revenue adjusted for real-world usage. If your machines are used 70% of the time: $432,000 × 70% = $302,400
• Total Expenses (Red Bar): Monthly costs multiplied by 12 months. Using our example above: $13,322 × 12 = $159,864
• Annual Profit (Blue Bar): Actual revenue minus expenses: $302,400 - $159,864 = $142,536

The gap between your potential and actual revenue bars shows you exactly how much money you're leaving on the table due to unused machines. In this example, that's about $129,600 annually - which might help you decide if investing in marketing to increase utilization makes sense.

Next Steps: Due Diligence Insights

If your initial estimates from the back of napkin calculator pass the sniff test, it's time to take your next step in the due diligence process. Here are three key insights from Adam Hoeksema, co-founder of ProjectionHub to complete more in-depth laundromat financial projections.

1. Make 5-Year Cash-Flow Projections

"You're also going to get a 5-year income statement, a 5-year cash-flow statement, and a 5-year balance sheet projection as well as an income statement, cash flow, and balance sheet all broken down by month for each of the five years," Hoeksema explains.

Next Step: Use these projections to gain insight into long-term profitability and cash flow. This is especially valuable if you're seeking funding or planning for growth.

2. Plan for Expansion

"This will work really well for just an individual laundromat or if you're looking to either start or acquire many laundromats over a period of time and want to model your laundromat empire," says Hoeksema.

Next Step: If initial projections look good, create a model that includes multiple locations to assess scalability and the financial impact of growth.

3. Integrate More Service Offerings

"If you do offer a wash and fold service at your laundromat, you can build that into the model here as well," Hoeksema advises.

Next Step: Consider adding revenue streams like wash and fold or pickup and delivery services to boost profitability.

These add-on services will help you determine the financial viability of your laundromat and provide a path for growth.

Disclaimer: I always remind people to use these defaults as a starting point, not a guarantee. This tool is based on real data, but every laundromat and market is unique. The true power of this calculator comes from plugging in your own local research numbers and adjusting based on your specific situation.