How Much Does It Cost to Start a Laundromat Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 3
- 2 min read
Updated: Nov 4
Starting a laundromat can be a profitable venture, but it requires a significant upfront investment. From leasing a location to purchasing commercial-grade equipment and securing insurance, costs can add up quickly. Understanding these expenses will help you create a realistic business plan and secure financing.
At Wexford Insurance, we specialize in protecting laundromat businesses with tailored insurance coverage. Here’s a detailed breakdown of what you can expect when budgeting for your laundromat startup.
Average Startup Cost Range
Opening a laundromat typically costs $200,000 to $500,000, depending on location, size, and equipment quality. In some cases, costs can exceed $1 million for premium locations or large facilities.
Check out NerdWallet’s guide on laundromat startup costs for more insights.
Major Cost Components
1. Location and Lease
Securing a prime location is critical. Expect:
Lease deposits and rent: $1,500–$6,000 per month
Renovations and build-out: $25,000–$75,000 for plumbing, electrical, and layout upgrades
Learn more about location-driven ROI at Clarify Capital.
2. Commercial Laundry Equipment
Equipment is your largest expense, often 50–70% of your budget:
Commercial washers and dryers: $1,000–$6,000 per unit
Total equipment cost: $60,000–$300,000 for a mid-sized laundromat
Explore pricing details at Coin-O-Matic’s equipment guide.
3. Utility Upgrades
Plumbing, electrical, and ventilation upgrades can cost $10,000–$40,000. These are essential for supporting heavy-duty machines and ensuring compliance with safety codes.
4. Licensing and Permits
Budget $1,500–$5,000 for local permits, business licenses, and compliance requirements.
5. Insurance Costs
Insurance is a critical part of your startup budget. Comprehensive coverage typically costs $500 to $1,500 per year, depending on your location, size, and services offered. At Wexford Insurance , we provide:
6. Marketing and Branding
Plan $5,000–$15,000 for signage, website development, and local advertising to attract customers.
Need help with building professional brand presence? Contractor Back Office helps with website, SEO and marketing support.
7. Working Capital
Set aside $15,000–$50,000 for operating expenses during the first 3–6 months, including utilities, payroll, and supplies.
Factors That Influence Cost
Location: Urban areas cost more but offer higher foot traffic.
Business Model: Self-service vs. full-service or franchise.
Equipment Choices: New machines cost more but reduce maintenance and utility bills.
Amenities: Extras like Wi-Fi, vending machines, or lounge areas increase costs but improve customer experience.
Final Thoughts
Starting a laundromat requires careful financial planning, but the investment can pay off with steady revenue and strong ROI. Combine smart budgeting with comprehensive insurance to protect your business from unexpected risks.
Ready to safeguard your laundromat?
Contact Wexford Insurance today.
