How Much Does It Cost to Start a Laundromat?
Self-service coin or card-operated laundry facility with washers, dryers, and optional wash-and-fold service.
National average startup cost | Time to launch: 3-6 months
National Cost Breakdown
| Expense | National Average | Details |
|---|---|---|
|
Business Registration & Licenses
LLC, EIN, business license, and water/sewer permits.
|
$500 - $3,000 | Varies by state |
|
Commercial Lease & Build-Out
1,500-5,000 sq ft retail space with plumbing upgrades, drainage, ventilation, and laundromat-specific build-out.
|
$30,000 - $200,000 | Varies by local rent |
|
Washers & Dryers
20-60 commercial washer and dryer units from manufacturers like Speed Queen, Dexter, or Continental. Mix of different capacities.
|
$80,000 - $400,000 | |
|
Utility Infrastructure
Gas lines, water heaters, plumbing, electrical upgrades, and water softener system.
|
$10,000 - $80,000 | Varies by local labor |
|
Payment System
Card/coin-operated payment system, mobile payment integration, loyalty program, and security cameras.
|
$5,000 - $20,000 | |
|
Business Insurance (Annual)
General liability, property, equipment breakdown, and business interruption coverage.
|
$3,000 - $10,000 | Varies by state |
|
Marketing & Signage
Exterior signage, Google Business Profile, local advertising, and grand opening promotion.
|
$2,000 - $8,000 | |
|
Working Capital (3 Months)
Rent, utilities (water, gas, electric), supplies, and maintenance while building customer volume.
|
$10,000 - $50,000 | Varies by cost of living |
| Total Estimated Startup Cost | $200,000 - $1,000,000 |
What Does It Cost to Start a Laundromat?
Laundromats are one of the most popular passive income businesses with a proven model that has worked for decades. Startup costs of $200,000 to $1 million reflect the equipment-intensive nature of the business. The appeal is recurring revenue from customers who need clean clothes regardless of the economy, making laundromats highly recession-resistant.
Buy vs. Build: The Laundromat Decision
Buying an existing laundromat is usually preferable to building new. An existing business comes with established customers, working utilities, and proven revenue. Building new requires extensive plumbing and utility work that can double the cost. When evaluating an existing laundromat, focus on equipment age, lease terms, utility costs, and the neighborhood demographics. Areas with high renter populations and limited in-unit laundry are ideal.
Essential Tools to Launch Your Laundromat
Laundromat Startup Costs by City
See how startup costs vary across major US cities. Costs are adjusted for local rent, labor, and cost of living.
| City | Estimated Total Cost | Cost of Living |
|---|---|---|
| Arlington, VA | $178,000 - $1,017,000 | 148.2% |
| Alexandria, VA | $173,000 - $982,000 | 143.6% |
| Anaheim, CA | $169,000 - $955,000 | 145.2% |
| Allen, TX | $154,000 - $860,000 | 104.5% |
| Atlanta, GA | $154,000 - $862,000 | 101.4% |
| Ann Arbor, MI | $148,000 - $823,000 | 108% |
| Asheville, NC | $146,000 - $805,000 | 105.8% |
| Anchorage, AK | $145,000 - $801,000 | 132.5% |
| Arlington, TX | $138,000 - $753,000 | 93.5% |
| Albuquerque, NM | $134,000 - $730,000 | 93.2% |
| Athens, GA | $132,000 - $716,000 | 93.4% |
| Albany, NY | $130,000 - $702,000 | 93.6% |
| Appleton, WI | $130,000 - $702,000 | 90.5% |
| Amarillo, TX | $127,000 - $681,000 | 85.5% |
| Akron, OH | $125,000 - $665,000 | 86% |
See Laundromat Costs in All Cities
Permits & Licenses Required
- Business license
- Water discharge permit
- Fire inspection
- Building permits
- ADA compliance
- Sign permits
Frequently Asked Questions
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.
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.
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.
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