Is Laundromat Profitable?
Laundromats are the heavy hitters of the passive income world. With a 22% net margin, they're some of the most profitable small businesses you can own. The machines do the work, you just keep the place clean and collect the quarters (or card payments). It's recession-proof because people always need clean clothes. But be warned: the entry cost is high. You're looking at $350k+ to build one from scratch. Most smart investors buy an existing one, fix the machines, and add card readers to boost revenue by 30% overnight.
At a Glance
| Metric | Value |
|---|---|
| Industry Average Revenue | $330K |
| Net Profit Margin | 22.20% |
| Startup Cost | $350,000 |
| Time to Profitability | 12-18 months |
| Target Market | Renters and students without in-unit laundry |
| Competition Level | Low |
Revenue, margins, startup costs & equipment lists for 200+ local businesses
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Estimated startup equipment and costs:
- →10–20 Commercial washers: $1,500–$3,000 each
- →10–20 Commercial dryers: $1,200–$2,500 each
- →Change machine: $2,000–$5,000
- →Digital payment system: $5,000–$15,000
- →Folding tables and chairs: $2,000
- →Pro security cameras: $1,000–$3,000
- →Leased retail space: $3,000–$8,000/month
How to Start a Laundromat
Hunt for acquisitions
Check BizBuySell every morning. Look for older owners who are tired. Request their utility bills for the last 3 years; they don't lie about revenue.
Negotiate a seller note
Don't put all your cash down. If the seller carries 30% of the price, you have way less risk. It also proves they believe the business is actually profitable.
Go digital
Update to a card system immediately. People hate quarters. Plus, you get a clean digital trail of every cent that comes through your machines.
Start drop-off laundry
Hire more staff to do the folding. It turns your passive business into a high-service business with much higher profit caps.
Add more 'vending' revenue
Put in a snack machine and a detergent machine. Every dollar counts. These small additions can often cover your entire utility bill.
Revenue Multipliers & Upsells
Wash-and-fold, dry cleaning drop-off, vending, phone charging, alterations
Frequently Asked Questions
Is it really passive?
Semi-passive. You'll spend 15 hours a week on it. Between checking the trash, restocking soap, and dealing with the occasional broken dryer, it's not 'do nothing' money. But it's close.
What's the monthly profit?
A decent spot will net you $3k to $8k a month. If you're doing $20k in gross revenue, you're doing well. The biggest expenses are utilities and rent, so watch those numbers like a shark.
Should I buy an old laundromat?
Yes. Use seller financing. Ask the owner to stay on for 20% of the deal. This keeps them 'in the game' to make sure you succeed. Avoid building new unless you have zero competition in a busy area.
What makes a location 'perfect'?
Look for high-density apartments with no in-unit laundry. If there's a big apartment complex nearby where the communal laundry room is broken or sketchy, that's your gold mine.
How do I double my money?
Wash-and-fold. charge $2 a pound for people to drop off their dirty clothes. It's the highest margin service you can offer and it builds a loyal customer base that doesn't care about the price per load.
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