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Laundry Income Calculator

Common-area laundry adds real dollars to NOI at small and mid-size apartments. This calculator models both structures — owner-operated machines and leased revenue share — so you can compare before signing the operator contract.

$
$
%

50/50 is common

$

Water + gas/elec

$
%

Monthly laundry income to owner

$720

Annual income to owner

$8,640

Full gross annual (before share)

$8,640

Annual utility cost

$950

Annual equipment cost

$1,800

Laundry NOI

$5,890

Valuation at cap rate

$98,160

How the math works

Laundry income at small and mid-size apartment buildings lands between $8–$20 per unit per month. Owner-operated runs higher margin but ties up capital in machines; a third-party lease (revenue share) is typically 40–60% to the owner with zero equipment exposure. Both structures are common and both add NOI.

Modern coin-free systems (CSC, WASH, PayRange) raise utilization 15–25% because tenants use them more when they don't need quarters. Prices per cycle have risen to $2.50–$3.25 in urban markets. High-efficiency front-loaders cut utility cost per load from $0.80 to around $0.40 — meaningful at scale.

How to Use

  1. Enter total units in the building.
  2. Estimate loads per unit per month (4-8 is typical).
  3. Enter per-cycle wash and dry prices.
  4. Pick ownership structure: owner-operated or leased.
  5. Enter utility cost per load and equipment cost if owner-operated.
  6. Enter revenue share % if leased.
  7. Enter cap rate to value the NOI contribution.

Frequently Asked Questions

Is owner-operated or leased better?

Owner-operated yields higher margin but requires capital ($8k-$14k per machine pair), maintenance calls, and vend-card systems. Leased is zero-capital with 40-60% revenue share — lower dollars but lower headache. Most small landlords lease; most institutional operators own.

What's a reasonable revenue share?

50/50 is a common starting point. Owners with higher traffic get 55-60%. Smaller buildings (under 20 units) sometimes see 35-45% share because the operator's fixed servicing cost is a larger slice of revenue.

Do tenants use common laundry if they have in-unit?

Almost never. In-unit washer/dryer eliminates common laundry revenue. When amenity upgrades add in-unit laundry, underwriting should zero-out laundry income and re-price units to capture the amenity premium.

How do I price cycles?

Benchmark nearby buildings and local launderettes. Urban: $2.75-$3.50 wash, $2.25-$3.00 dry. Suburban: $1.75-$2.50 wash, $1.75-$2.25 dry. Small 25-cent increments annually are tolerated; big jumps drive tenants to launderettes.

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