Laundromat Investing Guide: How to Buy and Run a Profitable Laundromat in 2026

Laundromats are one of the most overlooked small business investments in America. There are roughly 30,000 coin laundries in the United States, and they serve an essential, non-discretionary need: about 35% of Americans don't have a washer and dryer at home. That number rises to 80%+ in dense urban areas with apartment buildings.

The industry generates approximately $5 billion in annual revenue with remarkably consistent demand. People need clean clothes in recessions, pandemics, and booms. Laundromats stayed open as essential businesses during COVID lockdowns while restaurants, gyms, and retail stores shuttered.

The typical laundromat generates $150,000 to $500,000 in annual revenue with operating margins of 20%–35%. The best operators — those who add wash-and-fold services, pickup and delivery, and modern payment systems — push margins even higher. And the barriers to entry keep competition manageable: zoning restrictions, high equipment costs, and the need for heavy utility infrastructure (gas, water, sewer, electrical) make it hard to open a laundromat on every corner.

Why Laundromats Work as Investments

Essential, Recession-Resistant Demand

People can skip dining out, cancel gym memberships, and delay buying new clothes. They cannot skip doing laundry. Demand is inelastic — it doesn't change meaningfully with economic conditions.

Cash-Flowing from Day One

Unlike many businesses that take months or years to become profitable, an existing laundromat generates cash flow immediately upon purchase. There's no lease-up period, no inventory to build, and no customer acquisition cost for your base business.

Semi-Passive Operation

A well-run laundromat requires 5–15 hours per week of owner involvement, depending on size and whether you offer attended services. The core self-service model essentially runs itself: customers insert coins or swipe cards, wash their clothes, and leave. You collect revenue, clean the store, and maintain equipment.

Fragmented Ownership

Like self storage, the laundromat industry is dominated by independent owners. Many are aging operators who haven't upgraded equipment or pricing in years. This creates opportunities to acquire underperforming locations and improve them through equipment upgrades, price increases, and service additions.

Tangible Assets

When you buy a laundromat, you're buying equipment that has real resale value. Commercial washers and dryers last 15–20 years with proper maintenance. Even if the business fails, you can sell the equipment and recover a significant portion of your investment.

Laundromat Economics

Revenue Streams

Self-service (core business):

• Washers: $3.00–$8.00 per load depending on machine size
  • Top-load (small): $3.00–$4.50
  • Front-load (medium): $4.00–$6.00
  • Large-capacity front-load: $5.50–$7.50
  • Triple-load and mega: $7.00–$10.00
• Dryers: $0.25–$0.50 per 6–8 minutes (average customer spends $1.50–$3.00 drying)
• Average customer transaction: $6.00–$12.00

Wash-and-fold service:

• Charged by the pound: $1.50–$2.50 per pound
• Average order: 15–25 pounds ($25–$60)
• Higher margins than self-service once systems are in place
• Adds 20%–40% to total revenue for stores that offer it

Pickup and delivery:

• Growing rapidly, especially in urban markets
• Premium pricing: $1.75–$3.00 per pound
• Requires a vehicle, scheduling system, and staff
• Can add 15%–30% of total revenue

Ancillary revenue:

• Vending machines (soap, snacks, drinks): $200–$800/month
• ATM fees: $100–$400/month
• Video games/arcades: $50–$200/month
• Commercial accounts (restaurants, salons, gyms): Varies widely

[Operating Expenses](/blog/net-operating-income-guide)

For a mid-size laundromat doing $300,000 in annual revenue:

• Rent/lease: 20%–30% of revenue (the largest single expense)
• Utilities (water, gas, electric, sewer): 18%–25% of revenue
• Labor (attendants, wash-and-fold staff): 10%–20% of revenue (zero for unattended stores)
• Equipment maintenance and repairs: 5%–8% of revenue
• Insurance: 2%–3% of revenue
• Supplies (soap, cleaning products, bags): 2%–4% of revenue
• Marketing: 1%–3% of revenue
• Miscellaneous (security, trash, accounting, card system fees): 3%–5% of revenue

Total operating expenses: 65%–80% of revenue Owner's cash flow (before debt service): 20%–35% of revenue

What Drives Profitability

Rent is the #1 factor. If your lease takes 30% of revenue, profitability is tight. If it's 20% or less, the numbers are much better. Ideally, negotiate a lease with a percentage-of-revenue cap or buy the real estate.

Utility costs are #2. Newer, high-efficiency machines use 30%–50% less water and energy per load than older equipment. Upgrading from 20-year-old top-loaders to modern front-loaders can save $20,000–$40,000 annually in utilities at a mid-size store.

Vend prices (what you charge per wash/dry) are #3. Many owners undercharge by $0.50–$1.50 per load because they're afraid to lose customers. In most markets, laundromat customers are price-insensitive within a reasonable range — they'll pay $5.50 instead of $4.00 for a wash if the machines are newer and the store is clean. A $1.00 price increase across 200 daily wash cycles adds $73,000 in annual revenue.

How to Find and Evaluate Laundromats

Finding Deals

• BizBuySell and BizQuest — The largest small business marketplaces. Search for laundromats by state and city.
• Laundromat-specific brokers — Companies like Laundry Owner's Warehouse, PWS (formerly known as PWS | The Laundry Company), and local commercial laundry distributors often know about upcoming sales.
• Direct outreach — Walk into laundromats in your target area. Talk to owners. Many aren't "for sale" but would sell for the right price. Older owners in particular may be ready to retire but haven't listed.
• Distributor relationships — Speed Queen, Dexter, Continental Girbau, and other equipment distributors know which owners are considering selling, upgrading, or closing.

Due Diligence Checklist

Location and Demographics

• Population density (need 50,000+ within a 1–2 mile radius in urban areas)
• Renter percentage (higher is better — 50%+ is ideal)
• Median household income ($25,000–$65,000 is the sweet spot — too wealthy and customers have in-unit laundry; too low and they can't afford your prices)
• Walk-in traffic and visibility
• Parking availability (minimum 1 space per 2 machines)
• Nearest competitor distance and quality

Lease Analysis

• Remaining term and renewal options (you need 10+ years total to justify an equipment investment)
• Rent per square foot vs. market comparables
• Annual escalations (fixed dollar vs. CPI-based)
• Who pays for what? (Triple net vs. modified gross)
• Exclusivity clause (prevents landlord from leasing to another laundromat in the same center)
• Assignment clause (can you transfer the lease when you sell?)

Equipment Assessment

• Age of every washer and dryer (get serial numbers, which encode manufacture dates)
• Manufacturer and model (Speed Queen, Dexter, and Continental are the gold standards for durability)
• Maintenance history and records
• Remaining useful life estimate
• Cost to replace the full equipment package
• Utility connections — gas vs. electric dryers, water heater capacity, sewer line condition

Financial Verification

• Coin meter readings — For coin-operated stores, pull meter readings from every machine for the last 12–24 months. This is the most reliable revenue data.
• Card system reports — If the store uses a card or app payment system (SpyderWash, CleanCloud, Coin Meter), pull transaction reports.
• Tax returns — Compare reported income to meter readings. Cash businesses sometimes underreport income (which means the business may actually be worth more than stated, but also indicates the seller isn't forthcoming).
• Utility bills — 24 months of water, gas, and electric bills. These correlate with usage and help verify revenue claims.
• Expense verification — Get actual lease, insurance, and utility [documentation](/blog/heloc-documentation-requirements). Don't rely on seller-provided P&Ls alone.

Value-Add Strategies

1. Equipment Upgrade (The Big Play)

Replacing 20-year-old top-loaders with modern, large-capacity front-loaders is the single highest-return improvement in the laundromat industry.

• Larger machines = higher vend prices. A 60-pound front-loader vends at $7.00–$8.00 versus $3.50 for a top-loader. Customers actually prefer larger machines — they can do a full family load at once.
• Faster cycle times = more turns per day. Modern front-loaders complete a cycle in 25–35 minutes versus 35–45 for older machines.
• Lower utility costs. Front-loaders extract more water, reducing dryer time and gas consumption.
• Better customer experience. New machines attract new customers and justify premium pricing.

A full equipment retool for a 2,000-square-foot store runs $150,000–$400,000 depending on machine count and manufacturer. Equipment financing is readily available at 5–7 year terms.

2. Add Wash-and-Fold

This is the highest-margin service a laundromat can offer. You're using the same machines, same space, and same utilities — but charging $1.75–$2.50 per pound instead of $5–$7 per load. A 20-pound bag at $2.00/pound is $40, using two wash cycles ($12 in vend value) and dryer time.

Start simple: hire one attendant, promote with signage and flyers, and offer 24-hour turnaround. Many stores add $3,000–$8,000/month in wash-and-fold revenue within six months.

3. Modern Payment Systems

Going from coin-only to a hybrid coin/card/app system:

• Eliminates the need for customers to find quarters
• Enables dynamic pricing (charge more during peak hours, offer loyalty discounts)
• Provides real-time revenue data and machine monitoring
• Reduces coin collection and counting labor
• Systems like CleanCloud, Cents, or SpyderWash cost $10,000–$30,000 to implement

4. Pickup and Delivery

The fastest-growing segment of the laundry business. Partner with apps like Hampr or Rinse, or build your own system with CleanCloud or Curbside Laundries software. Requires a reliable vehicle and a dependable wash-and-fold operation.

5. Cosmetic Improvements

A clean, bright, well-lit laundromat with folding tables, free WiFi, and comfortable seating attracts more customers and justifies higher prices. Budget $10,000–$30,000 for paint, flooring, lighting, signage, and furniture. The ROI is immediate — customers choose the nicer store over the dingy one every time.

Financing a Laundromat

SBA Loans

The most common financing method for laundromat purchases.

• SBA 7(a): Up to $5M. Can finance the business purchase, equipment, and working capital. 10%–20% down payment. Variable rates (Prime + 1.75% to 2.75%).
• SBA 504: Best when you're also buying the real estate. 10% down.

SBA-preferred lenders for laundromats: Live Oak Bank, Harvest Small Business Finance, and Celtic Bank have laundromat lending programs.

Equipment Financing

Buy the business with cash or SBA, then finance new equipment separately:

• 5–7 year terms
• $0 down in some cases for creditworthy borrowers
• Equipment manufacturers (Speed Queen, Dexter) offer financing programs through their distributors

[Seller Financing](/blog/seller-financing-guide)

Common in laundromat sales. Typical structure: 20%–30% down, 5%–7% interest, 5–7 year term, 15–20 year amortization with a balloon. Sellers who carry financing are often more transparent about the business's true performance.

Cash Purchase

Many smaller laundromats ($100,000–$300,000) trade for cash. This eliminates debt service and maximizes cash flow immediately.

Operating a Laundromat

Daily Operations

• Clean the store (sweep, mop, wipe machines, clean restrooms)
• Check machines for malfunctions
• Empty coin boxes or check card system reports
• Restock vending and supplies
• Process wash-and-fold orders (if applicable)

Weekly

• Deep clean (behind machines, lint traps, drainage)
• Review financial reports
• Marketing activities (social media, community outreach)
• Maintenance checks on water heaters, HVAC, dryer venting

Staffing

• Unattended stores: Owner spends 5–10 hours/week on cleaning, maintenance, and coin collection. Lowest cost but limited service offerings.
• Attended stores: 1–2 attendants during operating hours. Costs $40,000–$80,000/year in labor but enables wash-and-fold, reduces vandalism, and improves customer experience.
• Full-service stores: 2–4 staff for wash-and-fold, pickup/delivery, and front counter. Higher labor costs but significantly higher revenue.

Risks of Laundromat Investing

Lease Risk

If you don't own the real estate, your business depends on your landlord. A non-renewed lease or massive rent increase can destroy your investment. Always secure the longest possible lease term with renewal options before investing in equipment.

Equipment Failure

A broken washer or dryer generates zero revenue while costing you repair bills. Budget for maintenance and keep a repair fund. Establish a relationship with a reliable commercial laundry repair technician.

Neighborhood Change

Laundromats depend on local demographics. Gentrification can eliminate your customer base (new residents have in-unit laundry). Neighborhood decline can reduce foot traffic and increase security issues. Monitor demographic trends.

Utility Cost Increases

Water and gas rate increases directly impact profitability. Some municipalities have dramatically increased water/sewer rates in recent years. Research utility rate trends before buying.

FAQs

How much does it cost to buy a laundromat?

Small stores (15–30 machines): $50,000–$200,000. Mid-size (30–60 machines): $200,000–$500,000. Large stores (60–100+ machines): $500,000–$1,000,000+. The price depends heavily on equipment age, lease terms, location, and revenue.

How much can I make owning a laundromat?

A mid-size laundromat doing $300,000 in annual revenue typically nets the owner $60,000–$100,000 before debt service. After debt service on an SBA loan, expect $30,000–$60,000 in annual cash flow. Owners with multiple locations or strong wash-and-fold programs earn significantly more.

Is a laundromat truly passive income?

An unattended self-service laundromat is semi-passive — expect 5–15 hours per week for cleaning, maintenance, and administration. A store with wash-and-fold and attendants requires more oversight. It's less passive than a NNN property but more passive than a restaurant.

How do I know if a laundromat's revenue is real?

Verify through coin meter readings (the mechanical counters on each machine), card system transaction reports, water bills (which correlate to wash volume), and tax returns. Never rely solely on the seller's word or a handwritten P&L.

What's the biggest mistake first-time laundromat buyers make?

Overpaying for old equipment. A laundromat with 15-year-old top-loaders might need $200,000+ in equipment replacement within 2–3 years. Factor replacement costs into your purchase price. The cheapest store to buy is often the most expensive to own.

Should I buy an existing laundromat or build new?

Buy existing for your first investment. You get immediate cash flow, an established customer base, and lower risk. Build new only if you have experience, a great location that lacks laundry service, and enough capital to survive the 12–18 month lease-up period.

Bottom Line

Laundromat investing combines essential-service demand, manageable operations, and solid returns into a package that most investors overlook. The industry rewards operators who buy at fair prices, upgrade equipment, add services like wash-and-fold, and keep their stores clean and welcoming.

The biggest risk is the lease — make sure you have a long-term, favorable lease before investing in equipment. The biggest opportunity is taking an under-managed store with old machines and dated pricing, and turning it into a modern, multi-service laundry business.

Start with one store, learn the operations, then scale. Many successful laundromat investors own 3–10 locations and generate $200,000–$500,000+ in annual cash flow across their portfolio.

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