How to Start a Laundromat: Costs, Equipment, Leases (2026)
How to start a laundromat in 2026: startup costs, washers and dryers, lease terms, utilities, pricing, wash-and-fold add-ons and a profit example in 10 steps.
Quick answer: To start a laundromat, research demand in dense rental neighborhoods, decide whether to buy an existing store or build new, negotiate a long lease, finance commercial washers and dryers, get permits and utilities sized for heavy water and gas use, then add services such as wash-and-fold to raise revenue per square foot.
A laundromat is a cash-flowing, equipment-heavy business. Customers come back weekly, there is little inventory, and modern payment systems make it possible to run with a small staff. But the upfront costs are high and the wrong lease or location can sink an otherwise good store. This guide walks through how to start a laundromat step by step, with cost categories, a lease checklist, a profit example and the add-on services that help stores grow.
What is a laundromat business?
A laundromat (also called a coin laundry or self-service laundry) rents the use of commercial washers and dryers by the cycle. Revenue comes from "turns", each paid wash or dry cycle, plus extras such as vended detergent, wash-and-fold service, pickup and delivery, and commercial accounts for restaurants, gyms, salons and short-term rentals.
The main cost drivers are rent, utilities (water, sewer, gas and electricity), equipment financing, repairs, staff and insurance. The industry's trade association, the Coin Laundry Association, offers education and market data for new owners.
How much does it cost to start a laundromat?
Costs vary enormously by city, store size and whether you buy or build. The table below shows the main cost categories with illustrative ranges for a small to mid-size store. These are planning examples, not quotes: get written bids from equipment distributors, contractors and your landlord.
| Cost category | What it covers | Illustrative range |
|---|---|---|
| Washers and dryers | Front-load washers in several sizes, stacked dryers | Often the largest single cost, frequently six figures |
| Build-out | Plumbing, drains, venting, gas lines, electrical, flooring, lighting | Varies widely by space condition |
| Water heating | Commercial boiler or water heaters | Depends on store volume |
| Payment system | Card readers, app payments, change machine | Varies by vendor and number of machines |
| Lease deposit and rent during build-out | Security deposit, first months' rent | Depends on local rents |
| Permits, legal, licenses | Business license, building permits, attorney lease review | A few thousand dollars in many cities |
| Furniture and extras | Folding tables, carts, seating, cameras, Wi-Fi, signage | Modest compared with equipment |
| Working capital | Several months of operating costs while customers find you | Plan 3 to 6 months of expenses |
For a framework to total these up, use our guide to estimating startup costs, then plug the numbers into a business plan template before you approach lenders.
How do you choose a laundromat location?
Location decides most of a laundromat's revenue, and you cannot fix a bad one with nicer machines. Weigh these factors before signing anything:
| Factor | What to look for | How to check |
|---|---|---|
| Renter density | Many apartments without in-unit laundry within a short drive or walk | Census data on renter-occupied housing, walking the neighborhood |
| Competition | Few stores nearby, or older stores you can outclass | Visit at peak times, count machines and note condition |
| Visibility and parking | Street frontage, easy parking close to the door | Site visits at different times of day |
| Utilities | Adequate water main, sewer capacity, gas and electrical service | Ask the landlord and a plumber to inspect; request utility history |
| Safety and lighting | Customers often come in the evening | Visit after dark, review local crime maps |
| Anchors | Grocery store, transit stop or busy retail nearby | Observe foot traffic |
Local zoning also matters: confirm that a laundromat is a permitted use for the space and whether the city limits operating hours or signage.
How to buy an existing laundromat: due diligence checklist
If you buy rather than build, the purchase price is usually based on the store's net cash flow, so every claimed dollar needs proof. Before closing:
- Review two to three years of tax returns, profit and loss statements and bank deposits.
- Compare water bills with the claimed number of turns.
- Inventory every machine: make, model, age, condition and whether it is owned or financed.
- Read the lease: remaining term, renewal options, assignment clause and rent increases.
- Check for open permits, code violations or sewer authority notices.
- Ask about staff, commercial accounts and any contracts that transfer to you.
- Observe the store yourself at different times of day and week.
Structure the deal as an asset purchase where possible, and allocate the price among equipment, leasehold improvements and goodwill with your accountant's help, because the allocation affects depreciation.
How to start a laundromat: 10 steps
- Study the market. Laundromats do best near renters without in-unit laundry, large families and dense housing. Count competitors within a mile or two, visit them at peak times (weekends and evenings) and note their prices, condition and services.
- Choose buy vs build. Buying an existing store gives you history to verify; building new lets you choose the site and equipment. Either way, model revenue per turn and utility costs.
- Pick a business structure. Most owners form an LLC to separate personal assets from the business. See how to start an LLC and get an EIN.
- Find and negotiate the location. Visibility, parking, safety and nearby anchors (grocery stores, transit) matter. Confirm the building can support the water, sewer, gas and electrical loads.
- Secure financing. Equipment financing, SBA loans and seller financing are common. Lenders want a cash injection and a solid plan.
- Select equipment. Mix washer sizes (small top-load or front-load, plus large-capacity machines for comforters) and enough dryers to match. Ask distributors about installation, warranties and parts availability.
- Get permits and licenses. Building and plumbing permits for the build-out, a business license, certificate of occupancy, sewer or wastewater approvals, and a seller's permit if you sell products.
- Build out and install. Plumbing, venting and electrical work usually takes the longest. Plan for inspections.
- Set prices and payment systems. Price per cycle by machine size, with higher prices for large washers. Decide on coin, card or app payments.
- Launch and market. Google Business Profile, signage, flyers in apartment buildings, opening promotions and loyalty programs bring the first customers.
What should a laundromat lease include?
The lease is one of the most important documents you will sign. Equipment is expensive to move and the build-out is permanent, so you need time to earn your investment back. Look for:
- A long term with renewal options. Many owners seek a lease of 10 years or more including options, so they can recover equipment costs and sell the business later with lease time remaining.
- Assignment rights. The right to transfer the lease to a buyer if you sell.
- An exclusive use clause. Prevents the landlord from leasing another space in the same center to a competing laundry.
- Clear responsibility for utilities and repairs. Who pays for sewer upgrades, roof leaks and HVAC?
- Rent-free build-out period. Time to install equipment before rent starts.
- Caps on rent increases and common area charges.
Have a commercial real estate attorney review the lease before you sign.
How much can a laundromat make? A worked example
Here is an illustrative month for a small neighborhood store. All figures are hypothetical to show the math; your numbers will differ.
| Line | Calculation | Monthly amount |
|---|---|---|
| Self-service washes | 3,000 turns x $5.50 average | $16,500 |
| Dryer revenue | 3,000 loads x $2.75 average | $8,250 |
| Wash-and-fold | 2,500 lbs x $1.90 per lb | $4,750 |
| Vending (detergent, snacks) | $600 | |
| Total revenue | $30,100 | |
| Rent and common charges | -$6,000 | |
| Utilities (water, sewer, gas, electric) | -$6,800 | |
| Attendant and wash-and-fold labor | -$5,800 | |
| Equipment loan payment | -$4,200 | |
| Repairs, supplies, insurance, card fees, software | -$2,400 | |
| Monthly cash flow before owner pay and taxes | $4,900 |
Notice how much depends on utilities and rent. A 10% change in turns moves cash flow far more than a 10% change in any single expense. Use the break-even point formula to find how many turns per month you need to cover fixed costs.
How to add wash-and-fold and other services
Self-service revenue is capped by the number of machines and hours in a day. Add-on services raise revenue per square foot and make use of idle machines on weekdays:
- Wash-and-fold (drop-off): priced per pound with a minimum order. Staff wash, dry and fold during quiet hours.
- Pickup and delivery: often booked through an app or website, priced per pound plus a delivery fee or included above a minimum.
- Commercial accounts: restaurants (towels, aprons), salons, gyms, Airbnb hosts and small clinics. These are billed weekly or monthly on invoice.
- Dry cleaning drop-off: partner with a dry cleaner and earn a margin as an agent.
Commercial accounts need proper invoices showing pounds processed, rate, pickup dates and payment terms. Our laundry service invoice template shows the layout, and the free invoice generator lets you build one in minutes.
Sample wash-and-fold invoice for a commercial client
| Date | Description | Qty | Rate | Amount |
|---|---|---|---|---|
| Oct 6 | Wash-and-fold, kitchen towels and aprons | 62 lbs | $1.75 | $108.50 |
| Oct 13 | Wash-and-fold, kitchen towels and aprons | 58 lbs | $1.75 | $101.50 |
| Oct 20 | Wash-and-fold, kitchen towels and aprons | 71 lbs | $1.75 | $124.25 |
| Oct 27 | Wash-and-fold, kitchen towels and aprons | 65 lbs | $1.75 | $113.75 |
| Monthly | Pickup and delivery (4 trips) | 4 | $10.00 | $40.00 |
| Total due (Net 15) | $488.00 | |||
Laundry services are taxable in some states and not others, so check your state's rules and use the sales tax calculator if tax applies.
What equipment and technology does a laundromat need?
- Commercial front-load washers in several capacities, with high spin speeds to cut drying time
- Stacked commercial dryers sized to the washer mix
- Water heater or boiler system sized for peak demand
- Payment system: coin, card, loyalty card or app
- Change machine, vending machine for detergent
- Folding tables, rolling carts, seating, Wi-Fi
- Security cameras and good lighting
- A scale and tagging system for wash-and-fold orders
- Point-of-sale or route software for drop-off and delivery orders
Common mistakes new laundromat owners make
- Trusting seller numbers without proof. Verify revenue with tax returns, bank deposits and water bills.
- Signing a short lease. A five-year lease with no options can leave you moving expensive equipment just as it pays off.
- Underestimating utilities. Water, sewer and gas often rival rent. Get past utility bills for the site or similar stores.
- Too few large washers. Big machines earn more per turn and attract families with bulky items.
- Neglecting cleanliness and safety. Customers choose clean, bright, safe stores, even at slightly higher prices.
- No working capital. New stores take months to build a customer base. Keep cash for slow early months and surprise repairs.
- Ignoring commercial billing. Late-paying accounts strain cash flow. Send invoices on a fixed schedule with clear terms.
Taxes and bookkeeping for a laundromat
Track revenue by source (washers, dryers, wash-and-fold, vending, commercial accounts) so you know what is growing. Equipment is a large depreciable asset; ask your accountant about Section 179 expensing and bonus depreciation, which can significantly reduce taxable income in the year you buy. If you form an LLC or corporation, see how LLCs file taxes. Owners who hire attendants will need payroll, so read hiring your first employee. This is general information, not tax advice.
Is starting a laundromat worth it?
Learning how to start a laundromat is mostly about getting three things right: a location with real demand, a long and transferable lease, and equipment financed at terms the store's cash flow can support. Add wash-and-fold and commercial accounts to grow beyond the self-service ceiling. When you start billing those accounts, create clean, professional invoices with our free invoice generator: no sign-up, and it builds the PDF in your browser for instant download.
Frequently asked questions
Is it better to buy an existing laundromat or build a new one?
Buying an existing store gives you immediate revenue, a customer base and equipment already in place, but you pay for goodwill and may inherit aging machines. Building new costs more up front and takes months of permits and plumbing work, but you choose the site, layout and modern card or app payment systems. Many first-time owners buy, then renovate after they understand the store's numbers.
How do I verify a laundromat seller's revenue?
Ask for at least two to three years of tax returns, bank statements and utility bills, not just the seller's spreadsheet. Water usage is a useful cross-check because each wash cycle uses a predictable amount of water, so water bills help confirm the number of turns. Card system reports, collection logs and a few days of observing traffic yourself add more evidence before you sign.
Do laundromats need special permits?
Requirements vary by city and state, but a laundromat usually needs a general business license, a certificate of occupancy for the space, plumbing and electrical permits for build-outs, and sometimes a wastewater discharge permit or approved lint traps from the local sewer authority. If you sell detergent or snacks, you may also need a seller's permit to collect sales tax.
How long do commercial washers and dryers last?
Lifespan depends on usage, water quality and maintenance, so manufacturers' estimates vary. Many owners plan to replace washers after roughly 10 to 15 years and get longer service from dryers, but a busy store can wear machines faster. Budget a replacement reserve each month, and align your lease term so you are not forced to move or renovate before the equipment has paid for itself.
Can I run a laundromat as a side business?
Many owners do, especially with card or app payment systems, remote monitoring and part-time attendants. Unattended stores still need regular cleaning, coin and card collection, machine repairs and customer service calls. Adding wash-and-fold or commercial accounts turns it into a more hands-on business with staff, so decide how much time you can commit before choosing the service mix.
How do laundromats get financing?
Common options are SBA 7(a) loans, SBA 504 loans for real estate and major equipment, equipment financing through distributors or manufacturer programs, and seller financing when buying an existing store. Lenders typically look at your credit, cash injection, experience and a business plan with realistic revenue assumptions. Equipment usually serves as collateral, and a personal guarantee is common.
Should a laundromat take cards or only coins?
Coins still work, but many owners now add card readers, loyalty cards or mobile app payments. They reduce theft and collection time, give you sales data by machine, and make price changes easy. The trade-off is processing fees and upfront hardware costs. Many stores keep coin acceptance alongside cards so customers without cards are still served.
What insurance does a laundromat need?
Typical coverage includes general liability for customer slips and falls, commercial property for equipment and build-out, business interruption, equipment breakdown, and workers' compensation once you have employees. If you offer wash-and-fold or pickup and delivery, ask about bailee coverage for customers' clothes in your care and commercial auto for delivery vehicles.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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