Dream of owning a laundromat but worried about getting soaked in bad investments? Our Laundromat Financial Calculator helps you separate the suds from the duds! Whether you’re a first-time investor or looking to expand your laundry empire, this tool will help you calculate potential returns faster than a spin cycle.
Laundromat Financial Projection Calculator
Basic Startup Investment Information
Revenue Assumptions
Operating Costs
How to use this calculator
This calculator is divided into three sections to help you plan your laundromat business:
1. Basic Startup Investment Information
- Enter your initial investment (money you’re putting in)
- Add any loan amount you’re planning to take
- Input the interest rate you expect to pay
2. Revenue Assumptions
- Input the number of washer/dryer units you’ll have
- Enter the expected revenue per unit (monthly average)
- Set your expected utilization rate (how often machines will be used)
Always be conservative with your revenue estimates.
3. Operating Costs
- Monthly utilities (water, electricity, gas)
- Monthly rent for your location
- Labor costs for staff
- Regular maintenance expenses
Click “Calculate” and get insights into your potential laundromat business.
Understanding the calculations
Here’s how I crunched the numbers in this tool:
Monthly Revenue Calculation:
Monthly Revenue = Number of Units × Revenue per Unit × (Utilization Rate ÷ 100)
Example:
60 units × $600 per unit × (70% ÷ 100) = $25,200 monthly revenue
Monthly Operating Costs:
Total Monthly Costs = Utilities + Rent + Labor + Maintenance + Monthly Loan Payment
Monthly Loan Payment uses the standard amortization formula:
Payment = Principal × (r(1+r)^n) ÷ ((1+r)^n-1)
where:
r = monthly interest rate (annual rate ÷ 12)
n = total number of payments (60 for 5-year loan)
Break-Even Analysis:
Break-Even Months = Total Startup Cost ÷ Monthly Profit
where:
Total Startup Cost = Initial Investment + Loan Amount
Monthly Profit = Monthly Revenue - Total Monthly Costs
How I chose default values in this tool
I want to share the research behind the default numbers I’ve used in our calculator. These aren’t just random figures. They’re based on industry data. Let me walk you through my thinking.
Number of Machines (Default: 60 Units)
When setting the default number of washer/dryer units, I looked at industry research from The Laundry Boss that showed “a typical laundromat might have anywhere from 20 to 100 washers and dryers.” I chose 60 units as our starting point because it’s right in the middle of this range, making it a good baseline for calculations.
Revenue Calculations
I found fascinating data about laundromat earnings that helped me set realistic defaults. According to Try Cents, “the average laundromat generates $5,000 – $25,000 per month in gross revenue.” This helped me validate our revenue-per-unit calculations.
To get even more specific, I looked at daily income data from Turns App, which breaks down earnings by size:
- Small neighborhood laundromats: $200 to $500 per day.
- Medium-sized urban locations: $500 to $1,500 per day.
- Large high-traffic operations: $1,500+ daily, potentially exceeding $2,000.
Operating Costs
For monthly operating expenses, I relied on data from Biz2Credit that showed costs typically “range from $2,000 to $6,000 per month.” This helped me set realistic defaults for utilities, maintenance, and other operating expenses in our calculator.
Advanced projections
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.
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.
Note: The default values in this calculator are based on industry research and should be adjusted for your specific location and circumstances.
Related tools:
Market Demand Calculator: Is there demand for another laundromat in your area? Get insights with this tool and feel more confident about your investment.
About the Author: Brett Lindenberg
