Starting a laundromat can be a profitable long-term investment, but the upfront costs can vary widely depending on your business model, size, and location. Whether you’re building a laundromat from scratch or purchasing an existing one, understanding the required startup costs is essential for securing financing and building a realistic budget. With proper planning, you can set up a business that balances modern equipment, operational efficiency, and customer convenience from day one.
Total Cost to Start a Laundromat
The total cost to start a laundromat typically ranges from $200,000 to over $500,000, depending on the size of the location, type of equipment, lease agreements, and additional services. Smaller turnkey stores in existing spaces may cost less, while large, new-build facilities with brand-new machines and premium features will land at the higher end. Additional services like wash-and-fold or delivery also require added investment in point-of-sale systems, storage, and staffing.
- Average startup cost: $200,000 to $500,000+
- Smaller stores may start around $150,000
- Large modern builds can exceed $1 million
- Costs vary by region, buildout complexity, and equipment choices
- Additional services increase setup costs but may improve long-term revenue
Major Cost Categories for Laundromat Startups
Opening a laundromat involves more than just buying machines. There are significant costs associated with commercial real estate, utility infrastructure, licensing, technology, and marketing. A successful startup budget should include both fixed one-time costs and early operational cash flow.
- Leasehold improvements or building construction
- Commercial washers and dryers
- Plumbing, electrical, and ventilation work
- Security systems and surveillance
- Business licenses, permits, and insurance
- Point-of-sale (POS) and payment systems
- Furniture, signage, and branding
- Grand opening marketing and promotions
- Initial utility deposits and working capital
Laundromat Equipment Costs
The most significant investment is in commercial-grade washers and dryers. New equipment offers better efficiency and reliability, though used machines may reduce upfront costs. Equipment pricing will also depend on machine size, payment technology (coin, card, app), and whether it supports remote monitoring and advanced controls.
- Top-load washers: $800–$2,000 each
- Front-load washers: $2,500–$10,000+ each
- Commercial dryers: $2,000–$6,000 each
- Installation and rigging: $10,000–$50,000 depending on scope
- Smart equipment adds mobile payment and monitoring features
Utility Infrastructure and Buildout Costs
Installing or upgrading utility lines is essential for supporting the heavy water, gas, and electrical demand of a laundromat. Many older buildings require significant improvements before commercial laundry machines can be installed. This part of the project often represents one of the largest hidden startup expenses.
- Plumbing and water system upgrades: $20,000–$100,000+
- Gas line extensions or replacements: $10,000–$40,000+
- Electrical upgrades and panels: $15,000–$50,000+
- HVAC, exhaust, and dryer venting: $10,000–$30,000
- Flooring and drainage: Required for commercial-grade durability
Technology, Licensing, and Soft Costs
Modern laundromats often rely on management software and payment systems to support customer convenience and streamline operations. You’ll also need to account for the cost of business formation, licenses, permits, and basic legal fees. These items may not be as visible as equipment or construction but are critical to a smooth opening.
- POS system and payment kiosks: $2,000–$10,000+
- Laundromat management software: Monthly or annual licensing
- Business license, permits, and local fees: $1,000–$5,000
- Insurance (property, liability, workers comp): $2,000–$6,000/year
- Professional services (legal, accounting): Varies by provider
Working Capital and Initial Marketing
Even with everything in place, it takes time to generate consistent revenue. Setting aside working capital helps cover payroll, utilities, and early advertising costs until the store reaches break-even. Launch promotions and grand opening campaigns should be part of your startup plan to drive early foot traffic and awareness.
- First 3–6 months of operating cash: $10,000–$30,000
- Marketing materials and signage: $2,000–$5,000
- Loyalty and app promotions: Bonus credit and referral incentives
- Website and Google Business setup: $500–$3,000 depending on quality
- Local outreach (flyers, partnerships): Targeted to neighborhood needs
Conclusion
Laundromat startup costs can vary significantly depending on your vision, location, and level of investment in equipment and technology. Planning for all categories—from infrastructure to marketing—will help you launch with confidence and minimize unexpected surprises. A well-capitalized startup is more likely to gain early traction, build customer loyalty, and generate steady income from the start.
- Expect to invest $200,000–$500,000+ to open a store
- Equipment and infrastructure are the largest cost areas
- Don’t forget software, licenses, and early working capital
- Build in budget for a strong launch and initial customer base
- A thorough plan reduces risk and increases the chance of early success
