How to value a laundromat: how much a laundromat is worth, from SDE to price

Why laundromats sell on SDE, not revenue

A laundromat is a small operating business that usually sits in leased space. Buyers pay for the cash it can produce, and the cost lines that decide that cash, rent, water, gas, and staff, take very different shares of revenue from one store to the next. That is why a revenue multiple is only a rough cross-check and why the price is normally set as a multiple of SDE.

SDE is the total financial benefit to one owner who works in the store. It starts from profit and adds back the owner's pay, interest, depreciation, and personal or one-time costs. Larger stores with hired management are sometimes priced on EBITDA instead, which treats a manager's pay as an expense. Know which measure a broker means before you compare multiples.

BizBuySell's published sold-listing benchmarks for laundromats (2021–2025) show a median earnings multiple of about 3.5x, with the middle half of sales roughly 2.7x–4.5x. That's one marketplace's history, not a price for any store. The lease, the machines, and how well the revenue can be proven decide where a store lands.

Example

Illustrative example. These are example inputs so the math is visible, not a real store, a market average, or a benchmark. The store takes in $300,000 from self-serve washers and dryers, $45,000 from wash-dry-fold and delivery, and $5,000 from vending, for $350,000 of revenue. Wash-dry-fold is 12.9% of it.

Expenses are rent $66,000, water and sewer $30,000, gas and electric $36,000, paid staff $30,000, repairs $12,000, insurance $6,000, supplies and payment fees $10,000, and other costs $12,000, for $202,000 in all. Rent is 18.9% of revenue, and utilities, at $66,000, are another 18.9%.

The seller ran $2,000 of personal costs through the store, so it is added back. SDE is $350,000 − $202,000 + $2,000 = $150,000, a 42.9% margin on revenue. If you hired a manager for $40,000 a year instead of working the store yourself, the cash flow would be $110,000.

Step 1: apply a multiple range

At an example range of 3x to 4x SDE, the store is worth $450,000 to $600,000, with a $525,000 midpoint at 3.5x. That midpoint is 1.5 times revenue, which is a cross-check, not a price.

The spread is the point. One full turn of SDE is $150,000 of price on this store. Where it lands depends on the lease, the machines, the neighborhood, and the records, so pick the range from recent sales of similar stores, ideally from a broker who can show you the closed deals.

Step 2: subtract the machines due soon

The multiple already assumes the store has working equipment, so do not add machine value on top. Instead, price what will need replacing in the next few years. In the example that is $40,000, which brings the range to $410,000 to $560,000 and the midpoint to $485,000.

The $520,000 asking price is 3.47x SDE, inside the range after equipment but above its midpoint. That is a reason to ask what justifies the higher end: a long lease, newer machines, or revenue that is easy to prove.

Step 3: value the building on its own

Some sellers own the building and want to sell it with the store. Do not multiply SDE by the whole price. Charge the store the market rent it would pay a landlord, so SDE reflects the business alone, then value the building on that rent and a cap rate the way you would any small commercial property.

For example, if a store earning $110,000 of SDE at market rent is sold with a building valued at $600,000 that would rent for $40,000 a year, the building's cap rate is about 6.67%. The business is valued on its SDE multiple, the building on its value, and the two are added. As the owner, you also stop paying rent to someone else, but you take on the building's taxes, insurance, and roof.

Step 4: test the loan and the price the cash flow supports

The SBA's 7(a) program is a common way to finance a small business purchase. The SBA says 7(a) terms are generally 10 years or less unless the loan finances real estate or long-lived equipment, with up to 25 years for real estate. The lender sets the rate and down payment.

In the example, 10% down leaves a $468,000 loan. At 10.5% over 10 years the payment is $6,314.96 a month, or $75,779.49 a year. With a $40,000 manager, the $110,000 of cash flow covers that 1.45 times, and $34,220.51 a year is left after the loan. On $102,000 of cash in, the down payment, $10,000 of closing costs, and the $40,000 of equipment, that is a 33.5% cash-on-cash return.

Turn it around and ask what price the cash flow supports. At a 1.25 minimum DSCR with the same down payment, rate, and term, $110,000 of cash flow supports a price of about $603,857. If you will run the store yourself, you can stretch further, but then your own labor is what is covering the loan.

Common pitfalls

Trusting revenue you cannot prove. Match coin and card revenue to the tax returns and to the water bill, since every wash uses water. Lenders underwrite documented cash flow, and buyers rarely pay for cash a seller says was never reported.

Ignoring the lease. A laundromat's machines are plumbed and vented into the space. A short lease, a big rent increase at renewal, or a lease that cannot be assigned can wipe out much of the value. Lenders commonly want the lease, with options, to run at least as long as the loan.

Counting machines twice. Do not add equipment value to an SDE multiple. Subtract replacements due soon instead, and get the age and model of every washer, dryer, and water heater.

Mixing up SDE and EBITDA multiples. A multiple quoted on EBITDA, after a manager's pay, applied to SDE overstates value. Ask how every multiple you see was measured.

Run your own numbers

The laundromat valuation calculator loads with this exact example. Replace the inputs with the store's own numbers and it rebuilds SDE, the value range, the asking multiple, the loan, DSCR, and the highest supported price, then prints the whole thing. For a quick check of loan coverage alone, use the DSCR calculator.

These pages run the math on the numbers you type. They do not supply market data, and nothing here is an appraisal, a business valuation, a loan offer, or financial, tax, legal, or investment advice. Have a business broker, a CPA, a lender, and an attorney review any store and its lease before you buy.

Sources

BizBuySell, Laundromat and Coin Laundry valuation benchmarks (sold listings reported 2021 to 2025), https://www.bizbuysell.com/learning-center/valuation-benchmarks/laundromats-coin-laundry/ (accessed November 9, 2026). Published sold-listing benchmarks for the median and middle-half earnings multiples cited above.

KMF Business Advisors, Laundromat business valuation overview, https://www.kmfbusinessadvisors.com/business-valuation/laundromat/ (accessed November 9, 2026). Secondary summary that attributes the same BizBuySell sold-listing earnings multiples for laundromats.

U.S. Small Business Administration, 7(a) loan program terms, conditions, and eligibility, https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility (accessed November 9, 2026). Describes 7(a) maturities of 10 years or less unless financing real estate or equipment with a longer useful life, and up to 25 years for real estate.

Steps

1. Get the tax returns, the utility bills, and the payment records

   Ask for three years of business tax returns, twelve to twenty-four months of water, gas, and electric bills, the card or app system's reports, the lease, and a list of every machine with its age. Visit at busy and slow times.

2. Rebuild revenue and expenses

   Split revenue into self-serve machines, wash-dry-fold and delivery, and vending. Then list rent, water and sewer, gas and electric, paid staff, repairs, insurance, supplies and payment fees, and everything else.

3. Calculate SDE

   SDE = revenue minus operating expenses, plus owner perks and one-time costs that were run through the business. Leave the owner's own pay, loan interest, and depreciation out of expenses.

4. Apply a multiple range and subtract equipment due soon

   Multiply SDE by a low and a high multiple from recent comparable sales. Subtract what it will cost to replace machines, water heaters, or venting in the next few years.

5. Value the building separately if it is included

   If the real estate is part of the sale, charge the store a market rent, value the building on that rent and a cap rate, and add it to the business value.

6. Test the loan and find the price the cash flow supports

   Take off a manager's pay if you will hire one, compare the cash flow with the loan payment, and work out the highest price that still meets the lender's minimum DSCR.

Questions