Ask a new laundromat owner what their monthly expenses are and most will list rent, utilities, and maybe labor. Ask an experienced operator and the list is three times longer — because the costs you don't budget for are the ones that kill your cash flow.
Fixed costs (they don't change with volume)
Rent or mortgage: The biggest fixed cost for most operators. Industry guidance says rent should be under 20% of gross revenue. If it's above 25%, the location economics may not work regardless of how well you operate.
Insurance: General liability, property, workers' comp. Budget $250–400/month depending on your state and coverage levels.
Internet, TV, phone: Customers expect WiFi. Most stores run $150–200/month for internet plus a TV service.
Accounting and bookkeeping: $100–200/month. Don't skip this — a good bookkeeper catches problems before they become expensive.
Software and licenses: POS systems, card payment platforms, security cameras, business licenses. $75–150/month.
Marketing: Google Business Profile is free and essential. Beyond that, $100–300/month covers basic Google Ads for WDF and local visibility.
Supplies: Cleaning supplies, trash bags, vending stock, laundry bags. $400–600/month for a mid-size attended store.
Variable costs (they scale with revenue)
Utilities — water: Typically 4–6% of gross revenue. This is the one to watch. If you're above 7%, investigate equipment efficiency and water pressure.
Utilities — gas: Hot water heating and gas dryers. Typically 6–10% of gross. Peaks in winter months.
Utilities — electric: Lighting, machines, HVAC. Typically 2–4% of gross. LED lighting conversions pay for themselves in 6–12 months.
Credit card processing: 3.5–5% of revenue processed through cards. With card usage at 60–80% in most markets, this is a significant line item. Negotiate your rate annually.
Equipment maintenance: Budget 0.5–1% of gross for ongoing maintenance. Preventive maintenance costs less than emergency repairs. Track every service call.
Labor (the cost most operators get wrong)
The hourly wage is not the cost. The real cost includes:
- Employer payroll taxes (Social Security, Medicare, FUTA, SUTA): add 8–10% to gross wages
- Workers' compensation insurance: 1–3% depending on state
- Training cost for new hires: 16–24 hours of paid training time
- Turnover cost: recruiting, interviewing, onboarding. Each replacement costs $500–2,000
A $13/hr attendant actually costs $15–17/hr when you include all employer costs. Across 40 hours a week, that's an extra $400–600/month beyond what shows on the paycheck. Use the Employee Cost Calculator to see your true number.
The expense most operators forget
Debt service. If you financed the purchase or a renovation, that monthly payment is real — and it's typically the second or third largest expense after rent and labor. A $300,000 loan at 9% over 10 years is $3,800/month. That's $45,600/year before you pay yourself a dollar.
One action this week
List every expense you paid last month. Compare it to the categories above. What's missing from your tracking? The Break-Even Analyzer includes every expense category — run your numbers and see where you actually stand.