Laundromat Acquisition Offer Calculator — what to pay and what the loan can carry

What should you offer for a laundromat?

Enter the seller's revenue and what it really costs to run the store. The tool takes out utilities, rent, labor, repairs, a manager and a machine replacement reserve, prices the cash flow that is left two ways, and gives the walk-away price where a multiple and your loan both still work. Then it tests the offers you are weighing.

1. The store, per year

Revenue ($)

Utilities: water, sewer, gas, power ($)

Rent ($)

Attendant labor ($)

Repairs and maintenance ($)

Insurance, supplies, fees, other ($)

2. What an absentee owner still pays

Manager or your own paid hours ($)

Machine replacement reserve ($)

3. Price and loan

Cash-flow multiple you will pay (x)

Down payment (% of price)

Interest rate (%)

Loan term (years)

Closing costs and working capital ($)

Debt coverage you require (x)

4. Prices to test

Each row is a price you might offer or be asked to pay, such as the asking price. Up to six.

Label	Price ($)

Fill in the numbers, then click Find my walk-away price.

How it is built

Adjusted cash flow: revenue less utilities, rent, labor, repairs, other costs, a manager and a machine reserve. It is the cash a hands-off owner could take before paying the loan.

Walk-away price: the lower of the cash-flow multiple and the largest price whose loan the cash flow can pay at your required coverage. The loan side is a standard amortising payment solved exactly, not searched for.

Stress: coverage is recomputed with revenue 10% and 20% lower. Utilities fall with revenue; rent, labor and everything else are held fixed.

Check: the test suite confirms the loan at the debt-limit price is covered at exactly the coverage you set, for hundreds of random stores.

Common questions

How much should I pay for a laundromat?

Price it off adjusted cash flow, not revenue: take the yearly revenue, subtract utilities, rent, labor, repairs, insurance and supplies, a paid manager if you will not work the store, and a reserve for replacing machines. Buyers commonly pay a multiple of that number, often around 3 to 4 times, then check that the cash flow can pay the loan with room to spare. The lower of the two limits is the price to walk away at.

What is a good debt service coverage ratio for a laundromat loan?

Lenders usually want the cash flow to cover the yearly loan payments at least 1.25 times, so a 25% cushion. This calculator solves for the largest loan a cash flow can carry at the coverage you enter, then shows what happens to coverage if revenue falls 10% or 20%.

Why include a manager and a machine reserve if I will run it myself?

Because the next owner may not, and because the books you are shown rarely pay the owner for their own hours. Counting a manager keeps the price honest if you ever step back, and a reserve for washers and dryers stops an old equipment room from looking like free cash flow.

Is my data uploaded?

No. Everything is calculated in your browser, there are no accounts, and nothing is sent to a server. Use Save to download a scenario file.

Is this financial, tax or lending advice?

No. It is arithmetic on the numbers you type. Verify the seller's revenue from meter reads, card-system reports and bank deposits, and check any offer with an accountant, broker or lender before you make it.