Estimate a laundromat’s value from yearly revenue and costs using a typical SDE multiple, or solve for the revenue or costs needed to reach a target value.
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Laundromat Value Formula
The calculator estimates a laundromat value by multiplying the specified annual revenue-minus-costs amount 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 the specified annual revenue-minus-costs amount
To calculate estimated value, enter yearly revenue, yearly costs, and the multiple. Select Estimated value.
To calculate required yearly revenue, enter yearly costs, estimated value, and the multiple. Select Required yearly revenue.
To calculate implied yearly costs, enter yearly revenue, estimated value, and the multiple. Select Implied yearly costs.
The multiple must be greater than zero. Select the value to solve for; only the required inputs are shown.
Illustrative Multiple Assumptions
The ranges below are illustrative assumptions, not current market benchmarks or recommendations. Match any chosen multiple to the same earnings basis. Revenue minus the entered costs is not automatically seller’s discretionary earnings (SDE) or EBITDA; those measures require specific adjustments.
| Multiple Range | Illustrative 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 | Example assumption, not a market benchmark |
| 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 income-multiple indication 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?
The default is about 3.5x SDE, near the average for recently sold laundromats. Pick Low (2.5x) or High (4.5x), or enter a custom multiple supported by comparable sales on the same earnings basis.
Is laundromat value based on revenue or profit?
This calculator bases value on the specified annual revenue-minus-costs amount, 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.
