How Much Does It Cost to Start a Laundromat in Colorado?

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Starting a Laundromat in Colorado typically costs between $106,000 and $636,000, with a median estimate of $265,000. Colorado’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Colorado costs $50 to file. Most laundromat businesses take 3-9 months to launch.

Last updated: March 2026

Laundromat startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Laundromat in Colorado?

Low

$106,000

Medium

$265,000

High

$636,000

National average: $100,000 – $600,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Laundromat in Colorado

Budget:

Equipment — Washers & Dryers

$106,000

Lease & Build-Out

$63,600

Payment Systems

$8,480

Point-of-Sale & Management System

$2,120

Vending Machines

$3,180

Build-Out & Renovations

$15,900

Business Insurance

$4,240

Working Capital

$26,500

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$230,020

Monthly Costs

First Year Total

$230,020

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Equipment — Washers & Dryers	$42,400	$106,000	$265,000	20-machine laundromat: 12 washers ($3,000–$8,000 each) + 8 dryers ($2,000–$5,000 each).
Lease & Build-Out	$21,200	$63,600	$159,000	Plumbing upgrades for commercial washers are the most expensive build-out component.
Payment Systems	$3,180	$8,480	$21,200	Cashless payment systems increase revenue 15–25% and reduce coin theft.
Point-of-Sale & Management System	$530	$2,120	$5,300	Remote monitoring prevents machine downtime from going undetected.
Build-Out & Renovations	$5,300	$15,900	$42,400	Customer experience improvements directly impact return visits and word-of-mouth.
Business Insurance	$2,120	$4,240	$10,600	Equipment breakdown coverage is critical — washer failures mean revenue loss.
Working Capital	$10,600	$26,500	$63,600	Utilities (water, gas, electric) are the largest ongoing expense — $2,000–$6,000/month.
Vending Machines (optional)	$1,060	$3,180	$8,480	Supply vending generates $200–$600/month additional revenue in high-traffic laundromats.
Total Startup Cost	$85,330	$226,840	$567,100	Required costs only

Licenses & Permits in Colorado

General Business License

Colorado does not have a statewide general business license requirement. Businesses must register their entity with the Colorado Secretary of State and obtain a sales tax license from the Colorado Department of Revenue if selling taxable goods or services. Many municipalities require a local business license — Denver, Aurora, Colorado Springs, and Boulder all have their own business licensing programs with fees ranging from $25 to $500 annually.

Industry-Specific Licenses

Retail Food Establishment License — Colorado Department of Public Health and Environment or County Health
Cost: $100-$800 • Renewal: Annual
Contractor License — Local jurisdiction (Denver Building and Fire Code Services, etc.)
Cost: $150-$600 • Renewal: Annual
Retail Marijuana Store License — Colorado Marijuana Enforcement Division
Cost: $2,500-$15,000 • Renewal: Annual
Cosmetology Salon License — Colorado Office of Barber and Cosmetology Licensure
Cost: $75-$250 • Renewal: Biennial
Real Estate Broker License — Colorado Division of Real Estate
Cost: $200-$500 • Renewal: Every 3 years
Child Care Center License — Colorado Department of Early Childhood
Cost: $100-$500 • Renewal: Annual
Retail Liquor Store License — Colorado Liquor Enforcement Division
Cost: $500-$1,500 • Renewal: Annual
Outfitter and Guide License — Colorado Parks and Wildlife
Cost: $100-$500 • Renewal: Annual

Home-Based Business Rules

Colorado municipalities regulate home-based businesses through local zoning ordinances. Denver allows home occupations with restrictions on customer visits (typically 1 person at a time), no exterior display, and no storage of commercial vehicles. Colorado State law preempts local regulations that would completely prohibit home-based businesses. The Colorado Cottage Food Act specifically authorizes home-based food production with certain limitations.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Laundromat:

Low

$5,000/mo

Medium

$12,000/mo

High

$30,000/mo

Revenue Potential

Annual Revenue Range

$80,000 – $600,000 (annual)

Profit Margins

20-35%

Break-Even Timeline

24-60 months

How Colorado Compares to Neighboring States

Colorado is a higher-cost state for starting a Laundromat, with a cost-of-living index of 105.7 (national average is 100). Compared to neighboring Wyoming ($250,000 median startup cost), Colorado has higher costs for a Laundromat.

State	Est. Cost	LLC Fee
Colorado (current)	$265,000	$50
Wyoming	$250,000	$100
Nebraska	$227,500	$105
Kansas	$225,000	$160
Oklahoma	$222,500	$100
New Mexico	$237,500	$50
Utah	$265,000	$54

Common Mistakes to Avoid

1
Poor location — laundromats need dense residential areas without washer/dryer access
2
Buying used residential equipment instead of commercial-grade machines
3
Neglecting cleanliness leading to customer loss
4
No remote monitoring causing extended machine downtime
5
Insufficient working capital for utility bills during ramp-up

Next Steps to Launch Your Laundromat

1
Form your LLC or corporation in Colorado — laundromats involve premises liability and equipment financing obligations (filing fee: $50)
2
Obtain a Colorado business license and any local municipality permit for commercial laundry operations
3
Secure a commercial lease with adequate water and sewer hookup capacity — verify Colorado utility infrastructure can support commercial laundry volumes
4
Finance commercial washers and dryers through manufacturers (Alliance Laundry, Electrolux) or leasing companies — equipment financing typically requires 10-20% down
5
Obtain a Colorado water discharge permit if your laundromat discharges above typical residential volumes
6
Install card-operated or app-based payment systems (Laundry Lux, PayRange) — coin-only laundromats are declining; card systems increase revenue 15-25%
7
Get commercial property insurance and general liability — $2,000–$6,000/year for typical laundromat
8
Set up an attendant schedule or security camera system — unattended laundromats require 24/7 camera coverage to deter theft and vandalism

Frequently Asked Questions

A laundromat requires $100,000–$250,000 to start, with commercial washer/dryer equipment being the largest cost ($40,000–$100,000). A 1,500 sq ft location with 20 machines is a typical starter setup. Acquiring an existing laundromat ($75,000–$300,000) is lower risk than building from scratch.

A well-located laundromat with 20 machines at $8–$12 average revenue per machine daily generates $4,800–$7,200/month gross. After utilities ($2,000–$4,000), rent ($2,000–$4,000), and supplies, net margins of 20–30% are typical. High-traffic urban locations can generate $15,000–$30,000/month gross.

High-density apartment areas where residents lack in-unit washers/dryers. Look for 10,000+ potential customers within 1 mile and low competitor density. Near grocery stores (shared parking) and on major corridors increases visibility. Avoid neighborhoods with high owner-occupied home rates.

Acquiring an existing laundromat is lower risk — established revenue, existing equipment, and proven location. Expect to pay 3–5x annual net income. New construction gives equipment and design control but takes 6–12 months longer to open and carries location risk. Most new entrants purchase existing locations.

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Start a Laundromat in Other States

See the national overview for Laundromat or browse all businesses you can start in Colorado.