Laundromat ROI Calculator: Return on a Coin Laundry Business
See whether a laundromat actually pays off — by comparing all-in investment against cumulative net profit over the years operated. Laundromats are marketed as semi-passive cash businesses, but the real returns depend heavily on location, utility costs, and equipment efficiency.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year value projection
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Total ROI | Annualized ROI | Net profit |
|---|---|---|---|
| $300k · $600k · 10yr | 100.00% | 7.18% | $300,000.00 |
| $200k · $300k · 8yr | 50.00% | 5.20% | $100,000.00 |
| $500k · $1.2M · 12yr (multi-store) | 140.00% | 7.57% | $700,000.00 |
| $350k · $250k · 7yr (poor location) | -28.57% | -4.69% | -$100,000.00 |
How This Calculator Works
Enter the all-in investment (equipment + build-out + lease deposits + working capital) and cumulative net profit across the years (revenue less utilities, rent, maintenance, labor, loan interest). The calculator reports total ROI, net profit, and the annualized rate.
The Formula
Return on Investment
V_start = amount invested, V_end = amount returned; annualized ROI = (V_end / V_start)^(1/n) − 1
Worked Example
A $300,000 laundromat investment producing $600,000 of cumulative net profit over 10 years posts a 100% total ROI — about 7.2% annualized. Well-located laundromats with efficient equipment commonly clear 8% to 15% annualized ROI; poorly located or utility-heavy operations run lower. The utility bill (water, gas, electric, sewer) is the make-or-break cost — often 15% to 25% of revenue.
Key Insight
Laundromat ROI is dominated by two factors location operators underestimate: utility costs and equipment efficiency. Older machines use 2x to 3x the water and energy of modern high-efficiency units — a difference that can swing net margin by 10 percentage points. The 'semi-passive' label is partly true (no inventory, minimal staffing) but maintenance, vandalism, and the gradual rise of in-unit laundry in apartments are real headwinds. The best returns come from card-payment systems (higher revenue capture than coins), modern efficient equipment, and locations with high renter density.
Frequently Asked Questions
What goes into all-in investment?
Equipment (commercial washers and dryers, $150k to $350k for a full store), build-out (plumbing, electrical, ventilation, $50k to $150k), lease deposits, payment systems (card readers, change machines), signage, and working capital.
What's a typical laundromat ROI?
Well-located, efficient laundromats commonly clear 8% to 15% annualized ROI. Poorly located or utility-heavy operations run lower or negative. Acquisition prices typically run 3x to 5x annual net profit, implying a 20% to 33% gross yield before debt service.
Why do utility costs matter so much?
Water, gas, electric, and sewer typically run 15% to 25% of revenue — the single largest variable cost. Older inefficient machines use 2x to 3x the utilities of modern high-efficiency units. Equipment efficiency directly determines whether a laundromat clears 5% or 15% margin.
Is a laundromat really passive income?
Semi-passive. No inventory and minimal staffing, but maintenance (machines break), collection (for coin operations), vandalism, and customer issues require ongoing attention. Card-payment and remote-monitoring systems make modern laundromats more passive than the coin-op stereotype.
What are the headwinds?
Rising in-unit laundry in new apartments reduces the addressable market; utility cost inflation squeezes margins; equipment replacement cycles ($150k+ every 10 to 15 years) are lumpy. Best returns come from high-renter-density locations where in-unit laundry is rare.
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Methodology & Review
Return is cumulative net profit (revenue less utilities, rent, maintenance, labor, and loan interest) against all-in investment. Annualized return is the constant yearly rate over the period. Laundromats are popular semi-passive investments; the figure is pre-tax operating ROI and excludes any sale of the business.
Written by Ugo Candido · Last updated May 17, 2026.