Laundromat Valuation: How to Accurately Value a Laundromat in 3 Steps to sell

Maybe it's time to retire, or maybe you own several laundromats and you want to narrow your focus — there are a lot of reasons for making the decision to sell as a laundromat owner. But, how much should you list for? Between assets, income, and utility costs (to name a few), how do you figure out the right price for your business? Luckily, accurate laundromat valuation has been done countless times before. Figuring out ballpark figures is pretty simple if you're willing to put in the time to calculate them.

To start with, your asking price should be 3.5-5 times the net operating income of your business. You can find that figure by considering the age of the equipment, the length of the lease, and the terms of the lease.

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Download our laundromat profit calculator to find out how much profit your laundromat is making each month, quarter, and year.

Factors to Consider before Valuation

When getting ready to determine your laundromat’s value, there are some factors to consider that significantly influence the final appraisal. Starting off on the right foot means a successful appraisal and a strong listing. Here are the non-negotiable considerations before beginning the valuation process: 

  • Market conditions: One key factor that’s impossible to control is the current state of the market. This will impact your laundromats value and should play a role in when you decide to list your business. Think of it this way: in a booming economy, demand for businesses might be higher, leading to a better sale price. On the other hand, during a downturn, you might need to adjust your expectations or wait to sell until market conditions are better.

  • Location: Desirable, high-traffic locations typically bring in higher values. A laundromat located in a busy area, close to residential buildings, or near universities can command the premium rate you’re gunning for. For example, a laundromat in a busy city center will typically sell for significantly more than one in a less populated area.

  • Competition: Survey the number of competitor laundromats in your local area. If your laundromat is one of many in the vicinity, potential buyers may use this to negotiate a lower price. If this is your situation, do your research and be prepared to communicate how your laundromat is unique and better serves customers. If you are in an area with few competitors, you might have the power to price higher and drive negotiations in your favor.

  • Business reputation: Positive brand identity and customer loyalty can add a lot to the overall value. While this is a less tangible factor, laundromats known for excellent customer service, clean facilities, reliable machines, and community engagement will likely be valued higher than one with a poor reputation and low community presence.

  • Financial performance: This one may seem like a no-brainer, but even the highest performing laundromats have to track revenue diligently in order to secure the listing price they deserve. Make sure to be consistent in tracking verifiable financial records showing strong performance. This is arguably the biggest factor in your laundromat’s value and a driving force in how much money you walk away with post-sale. Detailed financial records and evidence of profitability will also help potential buyers be more confident in purchasing your business.

  • Condition of equipment: New, high-quality, well-maintained equipment is much more attractive to buyers and can be a huge selling point for a higher price. The last thing a potential buyer wants to do is invest hundreds of thousands of dollars into new equipment right out of the gate. This is why outdated or malfunctioning machines can result in a huge hit to your laundromat’s value.

  • Lease terms: Favorable lease terms, such as long-term leases with options to renew, can add value of your laundromat. This is a major draw for buyers seeking stability and predictability in operating costs, and a good lease provides that.

  • Operational efficiency: What kind of business operations have you invested in and implemented over the years? Modern and up-to date operations, including low utility costs and effective staff management, contribute positively to the valuation and can help you differentiate from nearby competitors. Highlight any energy-efficient machines or cost-saving practices in place.

  • Demographic trends: Understanding the demographic trends of the area can play a role in valuation. Areas with growing populations or increasing numbers of renters can make your laundromat more attractive. 

The more data you have, the more accurately you can value your laundromat. Keeping these considerations in mind will allow you to add to your laundromat’s value and negotiate a sale price that benefits your pockets.

3 Steps for accurately valuing your laundromat

When performing a laundromat valuation, there are three main steps. 

Laundromats, like any business or commercial real estate, are valued based on performance. The way we measure performance is through a number called the Net Operating Income (NOI). NOI is the gross income minus expenses (excluding taxes and loan payments). The other 3 main factors to consider are the age of the equipment, the length of the lease on the space, and the terms of the lease.

Here’s a detailed explanation for how each of the three main factors affects your asking price.

1. Age of the laundry equipment

In a neutral market, equipment that is 0-5 years old should fetch a multiple of 4.5-5 times NOI. Machines aged 6-12 years typically see a multiple around 4-4.5 times NOI, while equipment that is 13-16 years old is valued at 3.5-4 times NOI. Equipment older than this is nearing the end of its life cycle and will need to be replaced soon, lowering the multiple further. In this case, it may make sense to replace the equipment, making your laundromat a much more attractive investment to buyers. 

Here are some example scenarios based on these estimates:

Scenario 1: Equipment aged 3 years

  • Net operating income (NOI): $100,000

  • Valuation multiple: 4.5-5 times NOI

  • Valuation: $450,000 - $500,000

Scenario 2: Equipment aged 9 years

  • Net operating income (NOI): $80,000

  • Valuation multiple: 4-4.5 times NOI

  • Valuation: $320,000 - $360,000

Scenario 3: Equipment aged 15 years

  • Net operating income (NOI): $60,000

  • Valuation multiple: 3.5-4 times NOI

  • Valuation: $210,000 - $240,000

2. Length of the lease

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Lease length is critical in your laundromat valuation. Longer leases make laundromats more valuable because it provides stability for the business’s longterm operating expenses. This is a plus for buyers looking for a good, predictable investment because it means they won’t be burdened with an expensive relocation in the near future. If you’re preparing to sell your laundromat and you don't have much time left on your lease, you may want to consider negotiating a new, long-term lease. This extra time will give buyers more confidence and increase the business value of your laundromat.

Rule of thumb, leases that are 15+ years tend toward 4.5-5 times the NOI. Leases around 10 years are valued at around 3.5-4 times NOI.

Here are some example scenarios based on these estimates:

Scenario 1: Lease length of 16 years

  • Net operating income (NOI): $120,000

  • Valuation multiple: 4.5-5 times NOI

  • Valuation: $540,000 - $600,000

Scenario 2: Lease length of 10 years

  • Net operating income (NOI): $100,000

  • Valuation multiple: 3.5-4 times NOI

  • Valuation: $350,000 - $400,00

3. Terms of the lease

The terms of your lease, particularly the rent amount relative to your gross income, also play a critical role in determining the multiple. Leases where rent is around 25% or less of the laundromat's gross income can command a multiple of 4.5-5 times NOI. As the rent percentage increases, the multiple decreases. For instance, if the rent comprises 33% or more of the gross income, the multiple drops to around 3.5-4 times NOI. Favorable lease terms with lower rents increase the attractiveness and value of your laundromat.

Here are some example scenarios based on these estimates:

Scenario 1: Rent-to-gross-income ratio of 20%

  • Gross income: $10,000

  • Rent: $2,000

  • Net operating income (NOI): $8,000

  • Valuation multiple: 4.5-5 times NOI

  • Valuation: $36,000 - $40,000

Scenario 2: Rent-to-gross-income ratio of 30%

  • Gross income: $10,000

  • Rent: $3,000

  • Net operating income (NOI): $7,000

  • Valuation multiple: 3.5-4 times NOI

  • Valuation: $24,500 - $28,000

Conduct your due diligence before purchasing

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When purchasing a laundromat, it's crucial to conduct the proper due diligence. Without this step, you could risk an improper valuation that can cost you thousands of dollars. To ensure that you buy the right laundromat for your business goals and needs, we’ve outlined everything future laundromat owners need to be aware of in this easy-to-use checklist.

Raising your laundromat valuation

If you've done the math and you're realizing that your laundromat isn't worth as much as you'd like it to be, take a look at our resources page for advice on improving your laundromat. Ideally, you shouldn't sell your laundromat until you're happy with the sale price. Cents can help you improve your laundromat's value in the short term as a business and in the long term if you decide to sell it one day.

Book a free demo to see how Cents can assist you at every stage of your laundromat journey.

The beginning steps of how to prepare the laundromat to sell

Taking all the necessary steps to prepare your laundromat for sale can greatly help in maximizing it’s value and attracting potential buyers. Here are some essential tips to get your laundromat is ready for the market.

1. Thoroughly clean your laundromat and conduct necessary maintenance

First impressions matter. A clean and well-maintained laundromat attracts buyers and can significantly impact their perception of your business. Start with a deep cleaning of the entire facility, including floors, walls, windows, and machines. Confirm that all equipment is in good working condition. If any machines are malfunctioning or showing signs of wear, consider repairing or replacing them. Regular maintenance records should be up-to-date and available for prospective buyers to review. This shows that the business has been well-managed and cared for over time.

2. Organize financial records

Buyers will scrutinize your financial records to assess the profitability and stability of your laundromat. Gather all relevant financial documents, including profit and loss statements, balance sheets, tax returns, and utility bills for the past three to five years. Ensure these records are accurate, comprehensive, and organized. Clear and transparent financials will build buyer confidence and benefit you in the negotiations process.

3. Assess and improve curb appeal

The exterior of your laundromat is the first thing buyers will see. Upgrade curb appeal by ensuring the building's exterior is clean and inviting. Repaint walls if necessary, fix any broken signage, and make sure the parking lot is well-maintained. Landscaping improvements, such as adding plants or flowers, can add charm and beauty to the overall appearance. A welcoming exterior can make a significant difference in garnering interest from potential buyers.

4. Market your laundromat effectively

The inside of a laundromat with machines lined up and customers folding clothes.

Taking your approach to marketing seriously is a necessary step in finding the right buyer for your business. Start by listing your laundromat on industry-specific websites, like, to reach a targeted audience. Consider hiring a business broker with experience in the laundromat industry to help with the sale. A professional broker can provide valuable insights, handle negotiations, and connect you with qualified buyers.

Where to list your laundromat

If you plan on selling your laundromat, either on your own or through an agent, make sure you list it for free over at Thousands of visitors a month browse the Marketplace looking for their next laundromat investment, so be sure to list yours there.

Download our laundromat profit calculator

Preparing your laundromat for sale can feel daunting, from meticulous record keeping, to thorough cleaning and enhancing curb appeal. One of the most important aspects of this process is understanding and demonstrating the financial health of your business. This is where the laundromat profit calculator becomes a vital tool. By downloading and using this calculator, you can accurately assess your laundromat's monthly, quarterly, and yearly profits, providing potential buyers with clear, reliable data that demonstrates the value of your business.

For instance, imagine your laundromat generates a gross income of $10,000 per month, with total monthly expenses of $6,000. By inputting these figures into the profit calculator, you can quickly determine your Net Operating Income (NOI) is $4,000 per month. This precise calculation not only helps you set a realistic asking price but also gives prospective buyers confidence in the profitability of your laundromat.

Don't leave the valuation of your business to guesswork or rough estimates. Download the laundromat profit calculator today to get accurate, detailed insights into your financial performance. This tool is crucial in maximizing the sale price of your laundromat and ensuring a smooth, successful transaction. Empower yourself with the data you need to present a compelling case to buyers and secure the best possible deal for your business!


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Download our laundromat profit calculator to find out how much profit your laundromat is making each month, quarter, and year.