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The cost to open a laundromat varies based on the location, size, equipment, and whether you're buying an existing business or building a new location. Coin laundromats can range in market value from $50,000 to more than $1 million. For new construction, however, costs can be a lot higher. In 2026, a new laundromat typically requires an investment of $700,000 to $1 million, with average all-in project costs approaching $950,000.
It's a significant investment that covers leasing and renovations, equipment, licenses and insurance, marketing, and initial supplies. The total cost will vary based on factors like lease terms, plumbing requirements, whether you buy new or used machines, and how you choose to brand and market your space.
Below, I'll break down each major startup expense so you can create a realistic budget and business plan. I'll also cover ongoing operational costs and how to grow your laundromat.
| Expense category | Estimated range |
|---|---|
| Lease deposit/initial lease payments | $15,000 to $60,000 |
| Leasehold improvements | $20,000 to $100,000 |
| Laundromat equipment and installations | $100,000 to $300,000 (depending on number and type of machines) |
| Licenses, filings, basic insurance | $500 to $5,000 |
| Marketing and signage | $1,000 to $10,000 |
| Initial inventory and supplies | $1,000 to $5,000 |
Startup Costs To Open a Laundromat
Opening a laundromat requires a one-time investment that includes both fixed and variable costs. Below is a breakdown of the major startup costs you can expect when launching a new laundromat.
Lease Deposits
Expect to spend $15,000 to $60,000 on your initial lease deposit and up-front costs for commercial real estate. The exact amount varies, but commercial lease security deposits are typically equal to one to three months of rent. Costs may be higher for larger spaces, shopping centers, or prime locations where monthly rents are higher.
Leasehold Improvements
Leasehold improvements are renovations made to a leased commercial space to make it suitable for your laundromat. Common improvements include:
Plumbing and electrical upgrades. Many spaces need significant utility work to support dozens of machines, which can cost $20,000 to $60,000.
Remodeling. Interior renovations such as flooring, lighting, and accessibility improvements can cost around $15,000 to $50,000.
Ventilation. Proper ventilation and dryer exhaust systems are another expense that can cost around $8,000 to $25,000.
Equipment and Installations
Commercial laundry equipment is a major expense, but it's essential for long-term reliability and customer satisfaction. The cost of laundromat equipment depends on whether you buy new machines or used, and whether you choose basic top-load washers or higher-capacity front-load models:
Washing machines. Commercial-grade washers start at around $6,000 for a 20-lb machine, with prices increasing based on capacity, brand, and features. Larger-capacity machines can exceed $28,000.
Dryers. A single commercial dryer costs around $6,000. Prices vary based on capacity and brand. Larger-capacity and stacked units generally cost more than smaller, single-pocket dryers.
Water heater. A commercial water heating system is critical, since laundromats consume large volumes of hot water daily. Expect to budget $15,000 to $40,000 for a full system, depending on whether you choose a storage tank or tankless setup and how many machines you're running.
Change machines and payment systems. Laundromats can use traditional coin systems or newer credit card and app-based payment options. Current laundromat card readers cost $500 to $1,000.
Folding tables and laundry carts. Commercial laundry carts can start around $200, with larger models costing more. Commercial laundromat folding tables can cost around $700 to $900 each.
Wi-Fi and customer amenities. Offering free Wi-Fi is now a customer expectation at many laundromats. Budget for a commercial internet plan plus a basic router setup (typically $50 to $1,500 per month, depending on your provider and speed).
Licenses, Insurance, and Legal
Getting legally set up and protected isn't usually too costly, but it's critical to operate as a legitimate small business:
Business license and permits. Typically ranges from $500 to $5,000, depending on your city or state.
LLC formation. Forming a limited liability company (one of the most common business entities for laundromat owners) usually costs less than $300. This type of business structure can be a good choice, since it protects your personal assets. Don't forget to factor in additional legal costs, which are usually billed hourly and can add up quickly.
Liability insurance premiums. Basic business insurance coverage can start around $350 to $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 $300 to $2,500 on mid-range design and brand development for a small laundromat business.
Exterior signage. Durable, eye-catching signs can range from simple window graphics starting around $150 to large-scale pole signs that can cost more than $40,000.
Website and local listings. A basic site plus Google Business and Yelp setup helps you show up in local searches.
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. Current cases of detergent and fabric softener generally cost about $50 to $100 per case, depending on the product and quantity.
Laundry bags and coin rolls. Initial costs can typically be a few hundred dollars, depending on quantity and supplier.
Laundry soap vending machines. Expect to pay around $750 to $1,200 each, depending on capacity.
Cost To Buy an Existing Laundromat
Instead of building from scratch, many entrepreneurs choose to purchase an existing laundromat. This path can offer immediate cash flow, an established customer base, and operational equipment already in place.
The cost of buying an existing laundromat varies depending on location, size, and the condition of the equipment. In 2025, the median asking price for a laundromat business was $300,000. A successful laundromat in a high-traffic area will command a higher price, while a rundown facility may sell for much less.
As a general rule, an existing laundromat is worth roughly 2.72 to 4.50 times its seller's discretionary earnings, though equipment age, the lease terms, location, and the accuracy of financial records all affect the final price.
Business owners who buy an existing laundromat should budget for potential upgrades to the equipment, signage, and customer experience (costs that can add $50,000 to $180,000+ on top of the purchase price) when calculating their potential return on investment.
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, dry cleaning, self-service, or full-service laundry options. For many owners, total monthly overhead ranges from $4,000 to $8,500, depending on size and staffing (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 your usage and regional rates, expect to spend around 20% to 25% of your laundromat's revenue on utilities.
Labor costs. Payroll is a standard operating expense if you hire employees for wash and fold services or use on-site janitorial services. Your costs will vary based on the number of employees, their hours, and local wages.
Maintenance and repairs. Routine upkeep and emergency fixes for washers, dryers, or change machines can vary depending on the age and condition of your equipment, machine capacity, the type of repair needed, and whether replacement parts are required.
Restocking supplies. This includes detergent, softener, vending products, and bathroom items.
Rent. Monthly lease payments will vary depending on your location, square footage, local commercial rental rates, and the terms of your lease.
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 financing. 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 options tailored to laundromat expansions. If you've been in business for at least six months, you may qualify for Clarify Capital financing options. 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, utility bills, or signage costs when cash flow is tight.
Equipment financing. Spread out the purchase of washers, dryers, and change machines with an equipment loan so you don't have to pay up front.
Business lines of credit. Access flexible capital for repairs, restocking, or marketing and advertising expenses as they arise.
Short-term loans. Get quick capital for expansion or other short-term business expenses, 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 and midsize business owners who take the time to conduct a market analysis on their local laundromat industry, 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 through Clarify Capital.
Frequently Asked Questions
Here, I'll answer some common questions about laundromat costs, profitability, and financing.
Is Opening a Laundromat Profitable?
Yes, laundromats are generally considered profitable businesses. They benefit from consistent demand (people always need clean clothes). Many laundromat owners report profit margins between 20% and 35%. However, profitability depends on choosing the right location, managing ongoing costs effectively, and maintaining your equipment.
How Much Money Do You Need To Open a Small Laundromat?
A small laundromat with used equipment and minimal renovations can cost as little as $50,000 to get started. This typically covers a basic lease, laundry machines, licenses, and initial supplies. Midsize laundromats with commercial-grade equipment usually require up to $1 million in startup capital. Many small and midsize business owners use a combination of personal savings, SBA loans, and equipment financing to cover the initial investment.
What Are the Cons of Owning a Laundromat?
While laundromats can be profitable, they come with challenges. High up-front costs, ongoing maintenance and repair expenses, and significant utility bills are common concerns. Laundromat owners also face risks like vandalism, machine breakdowns, and the need to remain competitive in their local market. It's not truly passive income (many successful laundromats require regular oversight, even with automated systems). A detailed business plan can help you anticipate and manage these operating expenses.
How Much Does an Average Laundromat Owner Make?
The earnings of a laundromat owner will depend on the size of the business, its location, operating costs, revenue, and any additional services offered, such as pickup and delivery. Laundromats sold between 2021 and 2025 had median annual owner earnings of $76,560. These earnings reflect the total financial benefit of the business, so the actual salary taken home by the owner may differ.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
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