FREE LAUNDROMAT TOOL

Laundromat Profit Calculator

Estimate a laundromat’s operating profit, cash flow after debt, operating margin, cash-on-cash return and simple payback period using your own assumptions.

Already evaluating an actual business? Use the seller’s numbers as a starting point—not as proof. A calculator can show what the numbers produce, but due diligence is what tells you whether those numbers are believable.

How to Use the Laundromat Profit Calculator

Start with the laundromat’s expected or reported annual gross revenue. Then enter the major recurring monthly operating expenses.

1. Enter annual gross revenue from washers, dryers and other services.
2. Add monthly rent and CAM charges.
3. Enter average monthly water, sewer, gas and electric costs under Utilities.
4. Add payroll, repairs, insurance and other recurring operating expenses.
5. If you’re financing an acquisition, enter the expected monthly loan payment.
6. Enter the total cash you expect to invest in the transaction.

What Do the Results Mean?

Annual Operating Profit

The calculator subtracts the operating expenses you entered from annual gross revenue. It does not subtract acquisition financing.

Operating Margin

Operating margin shows what percentage of gross revenue remains after the operating expenses entered into the calculator.

Cash Flow After Debt

This subtracts annual acquisition debt service from operating profit. For a buyer using financing, this number can be much more useful than looking at operating profit alone.

Cash-on-Cash Return

Cash-on-cash return compares annual cash flow after debt with the amount of cash you invested.

Simple Payback Period

This estimates how many years of the modeled cash flow it would take to recover the cash invested, assuming performance remains unchanged.

What This Calculator Does Not Tell You

A laundromat can look attractive in a spreadsheet and still be a bad acquisition. The calculator cannot determine whether:

• the seller’s reported revenue is accurate;
• the lease has enough time remaining;
• future rent increases are reasonable;
• equipment is approaching major replacement;
• the location is gaining or losing customers;
• the seller has deferred repairs;
• utilities are likely to increase;
• the asking price is justified;
• your financing assumptions are realistic.

Want to Understand Laundromat Profitability in More Detail?

Our complete profitability guide explains the difference between revenue, operating profit, seller’s discretionary earnings and cash flow after debt—and includes transaction benchmarks from laundromats that were actually sold.

Disclaimer: This calculator is provided for educational purposes only and does not constitute financial, investment, accounting, tax or legal advice. Results are estimates based entirely on the assumptions entered by the user.