How much does it cost to open a laundromat?

A laundromat costs $200,000 to $1 million to open. Buying an existing laundromat runs $200,000 to $500,000 and is usually the most cost-effective path. Building from scratch in a new location costs $400,000 to $1 million due to plumbing, utilities, and equipment. Equipment alone runs $80,000 to $400,000 for 20 to 60 machines.

How profitable is a laundromat?

A well-run laundromat generates $300,000 to $1 million in annual revenue with net margins of 20 to 35 percent. The average laundromat earns $15,000 to $30,000 per month in revenue. Cash flow is strong because customers pay upfront and utility costs are the main variable expense. Adding wash-and-fold service increases revenue 30 to 50 percent.

Is a laundromat a good passive income business?

Laundromats are semi-passive requiring 5 to 15 hours per week for cleaning, maintenance, and cash collection. Hiring an attendant for $12 to $18/hour makes it more hands-off. The business benefits from recurring customers who visit weekly, recession-resistant demand, and all-cash revenue. Many laundromat owners manage the business alongside a full-time job.

Laundromat Startup Cost Comparison

Cedar Rapids, IA vs New York, NY

Cedar Rapids, IA

$128,000 - $685,000

COL Index: 87.5

New York, NY

$228,000 - $1,346,000

COL Index: 187.2

Detailed Cost Comparison

Expense	Cedar Rapids, IA	New York, NY	Difference
Business Registration & Licenses	$500 - $3,000	$500 - $3,000	Same
Commercial Lease & Build-Out	$19,600 - $130,400	$104,300 - $695,700	-81%
Washers & Dryers	$80,000 - $400,000	$80,000 - $400,000	Same
Utility Infrastructure	$8,700 - $69,600	$14,500 - $116,000	-40%
Payment System	$5,000 - $20,000	$5,000 - $20,000	Same
Business Insurance (Annual)	$3,000 - $10,000	$3,000 - $10,000	Same
Marketing & Signage	$2,000 - $8,000	$2,000 - $8,000	Same
Working Capital (3 Months)	$8,800 - $43,800	$18,700 - $93,600	-53%
Total Estimated Cost	$128,000 - $685,000	$228,000 - $1,346,000	-48%

Local Market Factors

Factor	Cedar Rapids	New York
Cost of Living Index	87.5	187.2
Commercial Rent ($/sqft/yr)	$10 - $20	$40 - $120
Labor Rate Index	0.87	1.45
Sales Tax	7%	8.875%
Minimum Wage	$7.25/hr	$16.00/hr
LLC Filing Fee	$50	$200

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