Calculate estimated laundromat value from yearly revenue, yearly costs, and a valuation multiple, or solve for revenue or costs when value is known.
Customize This Calculator
Build your own version. Describe what you want changed, added, or compared.
Related Calculators
- Total Revenue Calculator
- Cost Income Ratio Calculator
- Days Of Cash On Hand Calculator
- Solvency Ratio Calculator
- All Business Calculators
Laundromat Value Formula
The calculator estimates a laundromat value by multiplying yearly net income by a valuation multiple.
- Value = estimated laundromat business value in dollars
- Revenue = total yearly revenue in dollars
- Costs = total yearly operating costs in dollars
- Multiple = valuation multiple applied to yearly net income
To calculate estimated value, enter yearly revenue, yearly costs, and the multiple. Leave the value field blank.
To calculate required yearly revenue, enter yearly costs, estimated value, and the multiple. Leave the revenue field blank.
To calculate implied yearly costs, enter yearly revenue, estimated value, and the multiple. Leave the costs field blank.
The multiple must be greater than zero. The calculator requires exactly one of revenue, costs, or value to be empty.
Common Laundromat Valuation Multiples
Laundromats are often valued as a multiple of annual net income. Actual multiples vary by location, lease terms, equipment age, competition, and financial records.
| Multiple Range | Typical Situation | What It May Indicate |
|---|---|---|
| 1.5x to 2.0x | Weak records, older machines, short lease, or declining sales | Higher buyer risk |
| 2.0x to 3.0x | Average store with stable sales and normal expenses | Common small-business valuation range |
| 3.0x to 4.0x+ | Strong location, long lease, newer equipment, clean financials | Lower perceived risk or stronger growth potential |
Revenue and Cost Items to Include
| Category | Examples |
|---|---|
| Revenue | Washer income, dryer income, wash-and-fold sales, vending, soap sales, pickup and delivery income |
| Operating costs | Rent, utilities, labor, repairs, supplies, insurance, card system fees, cleaning, licenses, marketing |
| Usually reviewed separately | Debt payments, owner salary adjustments, one-time repairs, major equipment replacement, tax effects |
Example Calculations
Example 1: Calculate laundromat value
You have yearly revenue of $240,000, yearly costs of $150,000, and a valuation multiple of 2.5.
The estimated laundromat value is $225,000.
Example 2: Calculate required yearly revenue
You want a laundromat value of $300,000. Yearly costs are $170,000 and the valuation multiple is 2.5.
The required yearly revenue is $290,000.
FAQ
What multiple should you use for a laundromat?
A 2.5x multiple is a common starting point for a simple estimate. Use a lower multiple if the store has weak records, old equipment, high rent, or a short lease. Use a higher multiple only when the laundromat has reliable profits, a strong location, good equipment, and favorable lease terms.
Is laundromat value based on revenue or profit?
This calculator bases value on yearly net income, which is revenue minus costs. Revenue alone can be misleading because two laundromats with the same sales can have very different utility costs, rent, labor costs, and repair costs.
Should equipment value be added separately?
In many small-business valuations, the equipment needed to operate the laundromat is part of the business value. If there is extra equipment, recently purchased machines, or major deferred replacement costs, review those items separately before relying on the estimate.
