Laundromat ROI

A simple ROI formula

Decide which owner benefit is being measured and apply the same definition across deals. Invested capital should include acquisition cash, fees, working capital, immediate repairs, and required improvements.

Illustrative example

Assume a hypothetical buyer invests $400,000 in total and receives $80,000 of annual owner benefit under a clearly defined calculation. The illustrative ROI is 20%. This is an example, not an expected laundromat return.

Separate return from financing

Debt can change the cash-on-cash result and the risk borne by the buyer. Keep an unlevered operating view alongside the financed cash-flow view.

Model the replacement cycle

Older machines, water heating, plumbing, electrical service, and store improvements may require capital that a one-year earnings figure does not show. Include a multi-year replacement schedule.

Add market scenarios

Test the result under lower volume, higher utilities, rent increases, repairs, labor changes, and additional local supply. Public permit and project records can identify incoming competition to include in that analysis.