Utilities are the biggest operating cost in most laundromats and the one buyers underestimate most. Enter your machine counts, cycles per day, and local rates to estimate monthly water, sewer, gas, and electric, and see them as a share of revenue.
Laundromat utility cost estimator
Estimate monthly water, sewer, gas, and electric from machine use and local rates.
Estimated monthly utilities$3,060
Water & sewer$1,142
Gas$1,225
Electric$694
Estimated annual utilities$36,723
Utilities % of revenue15.3%
Efficient utility load
Utilities are a healthy share of revenue, which protects your cash flow and lifts the store's value.
This is an estimate built from your inputs and rough defaults. Confirm it against 12 months of actual utility bills before relying on it.
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This is an educational estimate, not financial advice or a formal valuation. Confirm all figures with the seller's records and your own advisors.
How to estimate laundromat utility costs
Utilities are where laundromat profit quietly leaks away, and they are the hardest cost for a buyer to eyeball. Every wash uses water, the gas to heat that water, and a little electricity; every dry uses gas and electricity. Multiply the per-cycle cost by how many cycles run each day, add a base for lighting and standby, and you have a credible monthly estimate. Then compare it to revenue, because the dollar figure means little on its own.
Key takeaways
Utilities are usually the largest operating cost in a laundromat.
Judge them as a share of revenue, not just in dollars.
Water and sewer plus water heating drive most of the bill.
High-efficiency machines cut this line and raise the store's value.
What is a healthy utility share?
Utilities as a percent of revenue is the benchmark buyers and lenders use. The bands below show where a store sits. A high share is not always a dealbreaker, because efficient equipment can bring it down, but it must be priced into the offer.
Utilities as a share of revenue. Above 30% usually points to old, water-hungry machines or inefficient water heating.
Why utilities double as a revenue check
Water and power usage is one of the few laundromat numbers that is hard to fake, which makes it a powerful due-diligence tool. If a seller claims heavy revenue but the utility bills are light, the machines cannot have run enough to earn it. Cross-check the two whenever you evaluate a store, and use the cash flow calculator to see how the utility line hits the bottom line.
Cutting the bill
The biggest savings come from high-efficiency washers that use far less water, better water heating, and fixing leaks and running toilets. Because a lower utility bill is permanent added cash flow, it raises the store's value at a multiple. Weigh the financed cost of new machines against the savings using the equipment replacement calculator.
Common mistakes to avoid
Judging utilities in raw dollars instead of as a share of revenue.
Forgetting the sewer charge, which is often larger than the water charge.
Overlooking water heating as a major part of the gas bill.
Trusting revenue that the utility usage cannot support.
Frequently asked questions
How much are utilities for a laundromat?
It depends on the size of the store, the machine efficiency, and local rates, which is why this tool builds the number from your inputs. As a benchmark, utilities commonly run 15% to 30% of revenue, with water and sewer plus water heating making up most of the bill.
What is a healthy utility-to-revenue ratio?
Under about 22% of revenue is efficient, the low-to-mid 20s is typical, and above 30% is high and worth investigating. A high ratio usually points to old, water-hungry washers or inefficient water heating, both of which newer equipment can improve.
How can I lower my laundromat's utility bills?
The largest savings come from high-efficiency washers that use much less water per cycle, more efficient water heating, and fixing leaks. Because a lower utility bill is permanent added cash flow, it also raises what the business is worth when you sell.