Laundromat Break-Even Analysis: $31K Monthly Revenue Target

Fixed costs $11.8K/mo Base overhead

Contribution margin 89% After variable costs

Break-even revenue $13.2K/mo Revenue target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a laundromat.

Lean Base Full

Monthly revenue Revenue is the money available to cover fixed costs after direct costs. $ Low sales High sales Variable expenses Use direct costs that rise with sales, like supplies, processing, maintenance, and marketing. $ Tight costs Heavy costs

Money available to cover fixed costs $42,128 $47,071 revenue - $4,942 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin must cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which laundromat expenses stay fixed, and which move with sales?

Cost classification

Your break-even is only useful if rent, staffing, supplies, and usage-driven bills are classified correctly. Mislabel one large item, and Month 1 break-even can look safer than the cash plan really is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease Rent	Fixed	$8,000/month base overhead from Month 1 through Month 60.	Treating rent like it flexes with daily traffic.
Base Utilities	Semi-variable	$2,500/month baseline, with usage pressure as wash and dry volume rises.	Ignoring water and power spikes during busy periods.
Software Subscriptions	Fixed	$300/month operating overhead for recurring tools.	Forgetting small recurring charges in break-even math.
Facility Cleaning Supplies	Semi-fixed	$200/month baseline that may step up as traffic and hours grow.	Assuming cleaning scales perfectly with revenue.
Security System Monitoring	Fixed	$100/month required site monitoring overhead.	Excluding required monitoring because it looks minor.
Wash fold supplies	Variable	1.5% of revenue in the first year, falling to 1.1% by Year 5.	Applying it to every service without checking mix.
Payment processing fees	Variable	2.5% of revenue in the first year, falling to 2.1% by Year 5.	Underpricing card-heavy usage.
Wages	Semi-fixed	About $15.8k/month in the first year based on planned staffing.	Hiring before volume supports the schedule.

How does break-even change from a lean launch to a full laundromat build?

Scenario table

Break-even gets easier as monthly revenue rises faster than overhead. The lean launch is still tight, but the base and full cases add real cushion if machine uptime, utilities, and staffing stay on plan.

Planning assumptions only. Actual results will move with labor use, utilities, and machine uptime.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$36.0k	$3.5k	$27.5k	90.2%	$5.0k	Thin cushion; a small cost miss can erase profit.
Base case	$58.8k	$5.3k	$34.4k	91.0%	$19.1k	Clears break-even with room, but uptime still matters.
Full build	$84.2k	$6.9k	$34.4k	91.9%	$42.9k	Wide cushion; capacity, not demand, becomes the limit.

What pushes this laundromat past break-even?

Stress test

Year 1 has a $51,000 cushion, with $360,000 in revenue against a $309,000 break-even. But a 15% traffic drop, higher utilities, or more repairs can erase that fast, and stacked pressure can turn the month into a roughly $22,000 gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$309,000	$51,000 cushion	The base plan works, but the cushion is not huge.
Revenue shortfall	Cut monthly revenue 15% to $306,000.	$309,000	$3,000 gap	A traffic dip this size almost wipes out the month.
Fixed-cost pressure	Raise base utilities 20%, adding $500 per month.	$315,000	$45,000 cushion	Utility inflation trims the cushion faster than sales grow.
Margin pressure	Raise maintenance from 3% to 5% of revenue.	$317,000	$43,000 cushion	Repeat repairs push contribution margin down fast.
Combined pressure	Cut revenue 15%, lift utilities 20%, raise rent 10%, and push maintenance up 2 points.	$328,000	$22,000 gap	Low turns, slow wash-fold uptake, and higher bills can flip the month red.

What should you verify before signing the lease and buying the washers?

Founder checklist

Before you sign the lease or order equipment, make sure the site, machines, staffing, and opening cash can support the model. If the $8K rent, $593K capex, and $424K cash floor don’t line up with real traffic, break-even will slip.

1Lease Load$8K/mo

Check that $8K monthly rent still fits the model's $309K break-even revenue, because lease drag is the fastest way to miss break-even.

2Buildout Scope$593K

Confirm water, drainage, electrical, gas, venting, and repair support can handle the $300K washer-dryer package and the $150K buildout before you spend the full capex.

3Margin Stack1.5% to 4.0%

Keep wash-fold supplies at 1.5%, payment fees at 2.5%, maintenance at 3.0%, and marketing at 4.0%, or the margin you need for break-even will shrink.

4Staffing Ramp$189.5K/yr

Staff the Year 1 plan at 1 manager, 2 attendants, 1 wash-fold specialist, 0.5 driver, and 0.5 cleaner so service hours do not force early overtime.

5Cash Floor$424K

Hold cash above the $424K minimum through Month 6, because that is the model's low point before operating cash starts to recover.

6Traffic Proof48.5K visits

Test whether local traffic can support 45,000 self-service visits, 2,500 wash-fold visits, and 1,000 pickup-delivery visits in Year 1, because break-even depends on real volume, not awareness.