Enter the yearly revenue ($), the yearly costs ($), and a valuation multiple (×) into the Calculator. The calculator will estimate the laundromat value based on an earnings-multiple approach (a simplified rule of thumb, not a formal appraisal). 

Laundromat Value Calculator

Enter Revenue, Costs, and the Multiple (default 2.5). Leave exactly one of Revenue/Costs/Value empty to solve for it (Multiple is required).

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Laundromat Value Formula

LV = (YR - YC)*M

Variables:

  • LV is the estimated Laundromat Value ($)
  • YR is the yearly revenue ($)
  • YC is the yearly costs ($)
  • M is the valuation multiple (×)

To estimate Laundromat Value, subtract the yearly costs from the yearly revenue to get an annual profit estimate, then multiply by a chosen valuation multiple (M). The appropriate multiple varies widely based on factors like location, lease terms, equipment age, competition, and the quality/consistency of the financials.

How to Calculate Laundromat Value?

The following steps outline how to calculate the Laundromat Value.

  1. First, determine the yearly revenue ($). 
  2. Next, determine the yearly costs ($). 
  3. Next, choose a valuation multiple (×) appropriate to the situation.
  4. Next, gather the formula from above = LV = (YR – YC)*M.
  5. Finally, calculate the Laundromat Value.
  6. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

yearly revenue ($) = 50000

yearly costs ($) = 20000

multiple (×) = 2.5

estimated laundromat value ($) = (50000 − 20000) × 2.5 = 75000

FAQs

What factors can affect the yearly revenue of a laundromat?

Several factors can impact the yearly revenue of a laundromat, including its location, the number and type of machines available, pricing strategy, operating hours, and additional services offered such as wash-and-fold or dry cleaning.

How can a laundromat owner reduce yearly costs?

Laundromat owners can reduce yearly costs by investing in energy-efficient machines, implementing a preventive maintenance program to avoid costly repairs, negotiating better rates with utility providers, and using technology to manage operations more efficiently.

What does the valuation multiple (M) represent?

The multiple (M) is a rule-of-thumb factor applied to an earnings measure (often SDE or EBITDA in business valuation). This calculator uses (yearly revenue − yearly costs) as a simplified earnings proxy; in practice, what counts as “costs” and which earnings metric is used can materially change the result.

Can the Laundromat Value formula be used for other types of businesses?

The same basic idea—applying a multiple to an earnings or cash-flow measure—can be used for other types of businesses. However, the appropriate earnings definition and the multiple can vary significantly depending on the industry, market conditions, and the business’s risk and profitability.