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

McAllen, TX vs Chicago, IL

McAllen, TX

$124,000 - $659,000

COL Index: 82.5

Chicago, IL

$172,000 - $978,000

COL Index: 107.8

Detailed Cost Comparison

Expense	McAllen, TX	Chicago, IL	Difference
Business Registration & Licenses	$500 - $3,000	$500 - $3,000	Same
Commercial Lease & Build-Out	$17,000 - $113,000	$58,700 - $391,300	-71%
Washers & Dryers	$80,000 - $400,000	$80,000 - $400,000	Same
Utility Infrastructure	$8,000 - $64,000	$11,500 - $92,000	-30%
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)	$8,300 - $41,300	$10,800 - $53,900	-23%
Total Estimated Cost	$124,000 - $659,000	$172,000 - $978,000	-32%

Local Market Factors

Factor	McAllen	Chicago
Cost of Living Index	82.5	107.8
Commercial Rent ($/sqft/yr)	$8 - $18	$25 - $65
Labor Rate Index	0.8	1.15
Sales Tax	8.25%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$300	$150

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