How Much Does It Cost To Open a Laundromat in 2025? A Complete Breakdown

Startup Costs To Open a Laundromat

Opening a laundromat requires a one-time investment that includes both fixed and variable costs. From leasing your location to outfitting it with the right machines, these upfront expenses lay the foundation for a profitable business.

Below is a breakdown of the major startup costs you can expect when launching a new laundromat.

Lease and Renovations

Your real estate costs will vary depending on location, square footage, and how much renovation is needed to accommodate commercial washers. Here are the key estimates:

• Lease deposit and rent. Expect to spend $1,500 to $5,000 per month for a space in a retail strip, shopping center, or near apartment complexes. Prime locations in shopping centers or near apartments can reach the higher end of this range: $2,000 to $6,000.

• Plumbing and electrical upgrades. Most spaces need significant utility work to support dozens of machines.

• Buildout and remodeling. Renovations such as walls, flooring, lighting, ventilation have costs that vary widely, but a basic buildout can add roughly $25,000 to $75,000.

• Location-driven ROI. Areas with heavy foot traffic and large renter populations often offer better return on investment for laundromat owners.

To illustrate just how much laundromat space costs can vary, a Reddit user in Northern California shared:

"The city impact fees alone would have put the investment well over $800,000 to start a new laundromat."

So much depends on your location!

Equipment and Installations

Commercial-grade laundry equipment is a major expense, but it's essential for long-term reliability and customer satisfaction:

• Washing machines and dryers. Laundry machines typically cost $1,000 to $2,500 each, depending on size, features, and whether they're used or new.

• Change machines and payment systems. Plan to spend $500 to $2,000 for coin, card, or hybrid systems.

• Folding tables and laundry carts. These items cost $100-$300 each and improve customer flow.

Tip: Buying used laundry equipment can reduce upfront costs but may come with maintenance trade-offs.

According to one Reddit user's experience:

"For reference, new front loading washers can run between $3k - $15k, depending on capacity, plus hard-mount bases. You would expect brand-new machines to have some kind of card/Bluetooth payment capabilities. Dryers are about $8,000 for double-pocket, $5,000 for single-pocket."

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Licenses, Insurance, and Legal

Getting legally set up and protected isn't costly, but it's critical to operate as a legitimate small business:

• Business license and permits. Typically ranges from $100 to $500 depending on your city or state.

• LLC formation. Forming a limited liability company usually costs between $300 and $1,000. This type of business structure is best, since it protects your personal assets.

• Liability insurance premiums. Basic coverage can start around $350-$750 annually and may vary based on your services and location.

Marketing and Signage

Even if your laundromat is in a high-traffic area, you'll still need to invest in brand visibility and outreach:

• Logo and branding. Expect to spend $500 to $2,000 on design and brand development for a small laundromat business.

• Exterior signage. Durable, eye-catching signs range from $150 to $400 per square foot. Most small business signs range from $2,000 to $10,000 depending on the complexity and materials.

• Website and local listings. A basic site plus Google Business and Yelp setup helps you show up in local searches. Google Sites are free and can be a good starting point.

• Social media launch. Create free accounts on Facebook, Instagram, and other platforms to grow your customer base.

Initial Inventory and Supplies

These small but necessary purchases make your store functional from day one:

• Detergent and fabric softener. Stock basic laundry supplies for vending machines and resale. Expect to spend $200 to $800 on your initial inventory, depending on product variety and order volume.

• Laundry bags and coin rolls. Initial costs typically range from $100 to $300 depending on quantity and supplier.

• Laundry soap vending machines. Expect to pay $500 to $2,000 each depending on features.

Ongoing Expenses and Monthly Overhead

Once your laundromat is open, your monthly expenses will become a key part of managing cash flow and protecting your profit margins. These operational costs vary depending on the size of your location, the number of machines, and whether you offer staffing or full-service laundry options. For most owners, total monthly overhead ranges from $10,000 to $25,000 — and that's before factoring in loan payments or unexpected repairs. Here's a breakdown of the core expenses you'll need to plan for:

• Utility costs. Water, gas, and electricity are typically your largest ongoing expenses. Depending on usage and regional rates, expect to pay $3,000 to $6,000 per month.

• Labor costs. If you hire staff for cleaning, folding, or customer service, payroll may range from $2,000 to $8,000 per month.

• Maintenance and repairs. Routine upkeep and emergency fixes for washers, dryers, or change machines can average $500 to $1,500 monthly.

• Restocking supplies. This includes detergent, softener, vending products, and bathroom items — usually around $500 to $1,000 each month.

• Rent. Monthly lease payments often fall between $2,000 and $6,000 depending on location and square footage.

Keeping labor and maintenance in check can strengthen profit margins. Profitability depends on location, service model, and how efficiently you manage these monthly expenses.

How Much Revenue Do Laundromats Generate?

While the laundromat industry is generally stable, each owner's profit can vary widely depending on operating costs and monthly revenue. Most laundromats generate annual cash flow between $15,000 and $300,000.

Many laundromats become profitable due to steady demand for laundry services and relatively low inventory costs. The average laundry manager salary in the United States is $40,039, ranging from a low of $30,701 to a high of $50,726.

Choosing the Right Business Model

One of the first decisions entrepreneurs face is whether to open a self-service or full-service laundromat. Both models can be profitable, but each comes with different startup costs, staffing needs, and operational demands. Your business model will shape your customer experience, workload, and long-term profit margins.

To keep startup costs low, one Reddit user suggests buying a "zombiemat" — a poorly maintained or underperforming laundromat — or a laundromat that's already in decent shape and operating, with most of the major systems and equipment in place:

"You have two options: buy a zombiemat or a relatively little-to-do laundromat. The former one can [cost] $35,000 to $200,000, and [be] more of an asset sale [to] retool with new equipment, great marketing, etc. The latter can be $100,000 to $300,000+..."

These figures vary greatly depending on your location, customer base, and how involved you plan to be in daily operations.

Also consider self-service versus full-service laundromats.

Self-Service Laundromats

These are typically coin laundry or card-operated facilities where customers wash and dry their own clothes. They tend to be lower-cost to operate and require minimal staffing (meaning low payroll costs), making them a good fit for busy areas with walk-in customers who prefer quick, do-it-yourself options.

Full-Service Laundromats

These, on the other hand, offer fold services, wash-and-fold, dry cleaning drop-off, and sometimes pickup or delivery. Those added services can increase revenue and build customer loyalty, but require more labor and operational oversight. They're often best suited for residential neighborhoods with working professionals and families who value convenience and time-saving options.

How To Grow Your Laundromat

To run a fully operational laundromat — especially one equipped with commercial-grade machines and proper buildout — you'll likely need outside funding. The good news is that there are several financing options available to help.

Clarify Capital connects business owners with lenders who offer a range of products tailored to laundromat startups and expansions. If you've been in business for at least six months, you can qualify for most Clarify Capital funding programs. SBA loans are a separate option that may be available even earlier and offer longer terms and lower rates.

Here are a few popular options to consider:

• Working capital loans. Cover lease deposits, early utility bills, or signage costs when cash flow is tight.

• Equipment financing. Spread out the purchase of washers, dryers, and change machines so you don't have to pay upfront.

• Business lines of credit. Access flexible capital for repairs, restocking, or marketing expenses as they arise.

• Short-term loans. Get quick capital for launch or expansion, often with faster approvals and minimal paperwork.

• SBA loans. Government-backed financing with longer repayment terms and competitive interest rates if you qualify.

Turn Your Laundromat Vision Into a Successful Business

Opening a laundromat is a major financial commitment, but with the right planning and tools, it can be a steady, cash-generating business. Small business owners who take the time to research their market, develop a clear business plan, and understand their customer base are in a much better position to grow and scale. Choosing the right business model, offering a strong customer experience, and investing in equipment upgrades all contribute to long-term economic growth and profitability.

Grow your laundromat business with the right financing. Apply now at Clarify Capital!