How to Calculate Your Laundromat's Break-Even Point

Every laundromat has a break-even point — the revenue level where income covers all expenses with zero profit. Knowing this number tells you how much cushion you have and where to focus improvement efforts.

Fixed Costs

These costs don't change with revenue: rent, insurance, loan payments (our laundromat equipment buying guide covers what financing terms look like), base utility charges, and any salaried labor. Add these up for a monthly total. Fixed costs vary widely with rent, loan size and whether the store is attended, so pull the figure from your own books rather than an industry average.

Variable Costs

These increase with revenue: water usage above base, gas for dryers, electricity for machines, payment processing fees, and cleaning supplies. Calculate variable costs as a percentage of revenue. For most laundromats, variable costs are 25-35% of revenue.

The Formula

Break-even revenue = Fixed Costs / (1 - Variable Cost Percentage). Example: if fixed costs are $5,000/month and variable costs are 30% of revenue, break-even = $5,000 / (1 - 0.30) = $7,143/month. You need to generate $7,143 in monthly revenue just to cover costs.

What the Number Tells You

If you're generating $10,000/month with a break-even of $7,143, you have a $2,857 monthly cushion. That's healthy. If you're generating $7,500 with the same break-even, you're barely profitable — any unexpected expense could put you in the red. Knowing the margin helps you make better decisions about upgrades, hiring, and pricing.

Improving Break-Even

You can improve break-even by reducing fixed costs (negotiate rent using our lease negotiation guide, refinance loans), reducing variable costs (more efficient equipment, lower utility rates), or increasing revenue per customer (higher wash prices, wash-and-fold service, vending). Most operators have the most leverage on the revenue side — pricing adjustments and service additions tend to be easier than cost reduction.

Run the Numbers Quarterly

Costs change. Rent increases, utility rates adjust, and revenue fluctuates seasonally. Recalculate your break-even quarterly to stay ahead of shifts. If your break-even is trending up faster than your revenue, it's time to act.