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

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Starting a Laundromat in Minnesota typically costs between $94,000 and $564,000, with a median estimate of $235,000. Minnesota’s cost of living is 6% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Minnesota costs $155 to file. Most laundromat businesses take 3-9 months to launch.

Last updated: May 2026

Laundromat startup costs illustration — typical equipment and setup

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

Low

$94,000

Medium

$235,000

High

$564,000

National average: $100,000 – $600,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Laundromat in Minnesota

Budget:

Equipment — Washers & Dryers

$94,000

Lease & Build-Out

$56,400

Payment Systems

$7,520

Point-of-Sale & Management System

$1,880

Vending Machines

$2,820

Build-Out & Renovations

$14,100

Business Insurance

$3,760

Working Capital

$23,500

Options

Include 3 months working capital (+$33,840)

Employees:Just Me1–34–10

Startup Costs

$203,980

Monthly Costs

$11,280

First Year Total

$339,340

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Equipment — Washers & Dryers	$37,600	$94,000	$235,000	A 20-machine laundromat (around a dozen washers plus several dryers) is typically a substantial five-figure-to-low-six-figure capital outlay; commercial washers each carry a meaningful four-figure capital cost, and dryers are a similar four-figure line item.
Lease & Build-Out	$18,800	$56,400	$141,000	Plumbing upgrades for commercial washers are the most expensive build-out component.
Payment Systems	$2,820	$7,520	$18,800	Cashless payment systems meaningfully lift revenue and reduce coin theft.
Point-of-Sale & Management System	$470	$1,880	$4,700	Remote monitoring prevents machine downtime from going undetected.
Build-Out & Renovations	$4,700	$14,100	$37,600	Customer experience improvements directly impact return visits and word-of-mouth.
Business Insurance	$1,880	$3,760	$9,400	Equipment breakdown coverage is critical — washer failures mean revenue loss.
Working Capital	$9,400	$23,500	$56,400	Utilities (water, gas, electric) are the largest ongoing expense — typically a meaningful four-figure monthly cost.
Vending Machines (optional)	$940	$2,820	$7,520	Supply vending typically adds a low-three-figure monthly revenue stream in high-traffic laundromats.
Total Startup Cost	$75,670	$201,160	$502,900	Required costs only

Licenses & Permits in Minnesota

General Business License

Minnesota does not have a statewide general business license. Businesses must register their entity with the Minnesota Secretary of State and register with the Minnesota Department of Revenue for sales and use tax and withholding tax purposes. Some Minnesota cities require local business licenses, though this varies by municipality. Minneapolis and Saint Paul have their own business licensing requirements. Many business types are regulated through specific licensing programs at the state level.

Industry-Specific Licenses

Food Handler License — Minnesota Department of Agriculture or Local Health Department
Cost: Varies — contact agency • Renewal: Annual
Residential Building Contractor License — Minnesota Department of Labor and Industry
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist Examiners
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — Minnesota Department of Commerce — Real Estate
Cost: Varies — contact agency • Renewal: Annual
Child Care Center License — Minnesota Department of Human Services — Child Care Licensing
Cost: Varies — contact agency • Renewal: Annual
On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local Authority
Cost: Varies — contact agency • Renewal: Annual
Cannabis Retailer License — Minnesota Office of Cannabis Management
Cost: Varies — contact agency • Renewal: Annual
Pesticide Business License — Minnesota Department of Agriculture
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Minnesota municipalities regulate home-based businesses through local zoning ordinances. Minneapolis allows home occupations in all residential zones with restrictions on customer visits, signage, and deliveries. Saint Paul has similar home occupation rules. Minnesota's rural areas are generally very accommodating of home-based businesses. The state's Cottage Food Law specifically supports home-based food production and direct consumer sales.

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 Minnesota Compares to Neighboring States

Minnesota is one of the more affordable states for launching a Laundromat, with a cost-of-living index of 93.6 (national average is 100). Compared to neighboring Wisconsin ($227,500 median startup cost), Minnesota has higher costs for a Laundromat.

State	Est. Cost	LLC Fee
Minnesota (current)	$235,000	$155
Wisconsin	$227,500	$130
Iowa	$207,500	$50
South Dakota	$207,500	$150
North Dakota	$205,000	$135

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 Minnesota — laundromats involve premises liability and equipment financing obligations (filing fee: $155)
2
Obtain a Minnesota business license and any local municipality permit for commercial laundry operations
3
Secure a commercial lease with adequate water and sewer hookup capacity — verify Minnesota 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 a meaningful down-payment share
5
Obtain a Minnesota 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; cashless systems meaningfully lift revenue
7
Get commercial property insurance and general liability — typically a meaningful four-figure annual premium for a 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 typically requires a substantial six-figure investment to start, with commercial washer/dryer equipment as the largest line item. A 1,500 sq ft location with around 20 machines is a typical starter setup. Acquiring an existing laundromat is generally lower risk than building from scratch and can land in a similar six-figure price range depending on revenue.

A well-located laundromat with around 20 machines and a healthy daily revenue per machine generates a low-to-mid four-figure monthly gross. After utilities, rent, and supplies are paid, healthy net margins are typical. High-traffic urban locations can generate a substantial five-figure monthly 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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