One of the reasons I got into the laundromat space is because laundromats have the potential to make a lot of money with relatively little time investment compared to other businesses. But how much money can a laundromat really make? Is it going to be worth the time, effort, and investment for you to buy a laundromat?
Laundromats typically make anywhere from $5,000 to $25,000+ per month in income. The actual income of a particular laundromat depends on a variety of factors, including size, location, population density, local competitors, and more. Estimating the income of a particular laundromat is simple to do.
How to Estimate the Income of Any Laundromat
One of the great things about laundromat businesses is that there are always opportunities to make more money once you own one. So, while we talk about how to calculate a laundromat’s estimated income, keep in mind there are specific things you can do to make even more money with a laundromat. One way to increase income is to integrate a business management system like Cents to help you increase the performance of your laundromat business.
if you’d prefer to watch, check out the video below to learn how to estimate the income of ANY laundromat!
While I’ll explain how to quickly estimate any laundromat’s income in this guide, read through to the end and I’ll tell you where to download a free tool that will do this for you!
1. Calculating Washer Income
You can get an estimation of any laundromat’s income with a fairly simple math equation.
# of washing machines x vend price x turns x days in the month = estimated income
Let’s define a couple of those terms and then I’ll give you a practical example. “Vend price” refers to the cost to do a load of laundry in a particular machine type. “Turns” refers to the number of times, on average, a machine is used each day. The average turn per day is around 3, so we’ll use 3 to estimate our income. However, just know that some laundromats average less than 3 turns, while some average more than 3 turns. I also use 30.4 as days in the month, as that’s the average number of days per month (365/12).
If you want to estimate the washer income of a laundromat, you’ll need to gather the 2 missing variables in our equation: the number of each size of washing machine and the vend price of each size of washing machine. Let’s look at an example.
Say you do some recon work on a laundromat and find out that a laundromat has 10 20lb washers, 6 40lb washers, 4 60lb washers, and 2 80lb washers. The vend prices are $3, $5, $7, and $9, respectively. Here’s how we would calculate the estimated washer income:
10 x $3.00 x 3 x 30.4 = $2,736
And to extrapolate that out to all washing machines in our laundromat:
So we can estimate our total income from the washing machines to be about $9,666 per month.
2. Calculating Dryer Income
We’re able to simply calculate an estimate of the dryer income using the washer income that we calculated above. The typical dryer income is usually between 33% and 50% of the washer income. In most cases, I use 33% in my calculations as I find it generally more accurate. Our estimated dryer income, then, is:
$9,666 x .33 = $3,190
3. Estimate Total Income
Now that we have our estimated washer and dryer income, we can estimate our total income. In our example, our estimated income of the laundromat we’re considering is
$9,666 + $3,190 = $12,856
I want to emphasize that this is an estimate, but it will give you an idea of how much money a laundromat is making.
Now you know how to estimate any laundromat’s income quickly and easily! This should help you on your search for a laundromat to buy.
In order to make this even easier for you, I put together a tool that will calculate the estimated income of a laundromat for you. It is available to both the free members and the pro members, but you can also download it here for free if you don’t tell anyone. 😉
If you’re considering buying your first laundromat or want to learn more about the business, make sure you get a copy of the free e-book, The Keys to Buying Your First Laundromat. In it you’ll learn everything you need to know to get the process started!