How Much Does It Cost to Start a Laundry Business in the Philippines in 2025?

How Much Does It Cost to Start a Laundry Business in the Philippines in 2025?

Why Laundry is Still a Hot Business in 2025

If you’re looking for a business with regular, consistent demand, the laundry business might be exactly what you’re after.

Filipinos today live faster-paced lives. Work, commuting, and busy home schedules often leave little time for chores like doing laundry. For many, especially condo dwellers and renters in apartments, owning a washing machine isn’t even an option. Because of this, laundry shops have become essential not just convenient.

With continued urbanization and the rise of condo living, 2025 presents a great opportunity for laundry businesses, especially in high-density areas.

Real Talk: A Quick Anecdote from the Ground

I recently visited a neighborhood laundromat in Quezon City and spoke with the owner, Liza, a former OFW who started her shop in 2021. With just two secondhand machines and a 20-square-meter space, she wasn’t sure it would work. But she took the risk.

Three years later, her shop now operates with four machines, and she’s planning to expand. What made the difference?

She told me, “Kahit maliit ang puhunan ko, binawi ko sa serbisyo. Maayos, malinis, mabilis. Tapos bumalik sila.”

This is a reminder that excellent service and smart planning matter just as much as the equipment you buy.

Types of Laundry Businesses You Can Start

Before we go into the numbers, it’s important to understand the different laundry business models. Each has a different setup cost, time commitment, and market focus.

1. Self-Service / Coin Laundry

  • Customers wash and dry their own clothes
  • Requires minimal staff
  • Higher upfront investment in coin-operated machines
  • Best for areas with students, BPO workers, or urban condos

2. Full-Service Laundry (Wash, Dry, Fold)

  • You or your staff handle all washing, drying, and folding
  • More labor-intensive but appeals to working professionals and families
  • Good fit for areas with older residents or households without time

3. Pickup and Delivery Laundry

  • Ideal for online bookings or areas with high traffic congestion
  • Lower rent cost if done from home
  • Requires logistics (a small delivery vehicle or rider partnership)

4. Franchise Laundry Shop

  • Comes with branding, training, and business systems
  • Great for beginners who want support
  • Requires higher investment but less trial-and-error

How Much Does It Cost to Start a Laundry Business in 2025?

Let’s go over what it really takes to launch a laundry shop this year.

Your actual cost will depend on your chosen business model, your location, and whether you buy new or secondhand machines.

  1. Business Registration and Permits

Expense Item

Estimated Cost

DTI Registration

₱500 to ₱1,000

Barangay Clearance

₱500 to ₱1,000

Mayor’s Permit

₱2,000 to ₱5,000

BIR Registration

₱500 to ₱1,000

Total

₱3,500 to ₱8,000

Getting registered is simple but essential. Don’t skip this part if you want to operate legally.

  1. Equipment and Machines

Equipment

Estimated Cost

Commercial Washer

₱80,000 to ₱120,000

Commercial Dryer

₱90,000 to ₱130,000

Water Pump and Tank

₱8,000 to ₱15,000

Electrical and Plumbing Setup

₱20,000 to ₱40,000

POS System

₱10,000 to ₱15,000

Carts, Racks, Tables

₱10,000 to ₱20,000

Initial Detergent Stock

₱3,000 to ₱5,000

Total

₱250,000 to ₱450,000

Tip: If you’re on a budget, consider buying refurbished machines from reputable dealers.

  1. Location and Renovation

Expense Item

Estimated Cost

Monthly Rent (Metro Area)

₱15,000 to ₱25,000

Renovation / Shop Setup

₱50,000 to ₱100,000

Signage

₱5,000 to ₱10,000

Total

₱70,000 to ₱130,000 upfront

The best locations are near dormitories, subdivisions, condos, or public markets with lots of foot traffic.

  1. Labor and Staff

Role

Cost Estimate

Staff Salary (1–2)

₱8,000 to ₱24,000/month

Training & Uniforms

₱3,000 to ₱5,000 (one-time)

Total

₱11,000 to ₱29,000

Hiring reliable staff is essential if you’re running a full-service shop. Train them well friendly service keeps customers coming back.

Estimated Capital Based on Setup

Business Type

Estimated Capital

Home-Based Laundry

₱150,000 to ₱250,000

Full-Service Shop

₱350,000 to ₱600,000

Self-Service Laundry

₱700,000 to ₱1,200,000

Franchise Setup

₱1.2M to ₱2M+

Monthly Operating Expenses to Expect

Even a profitable laundry business needs to keep monthly costs under control.

Expense Category

Monthly Cost

Rent

₱15,000 to ₱25,000

Electricity & Water

₱8,000 to ₱15,000

Staff Salaries

₱8,000 to ₱24,000

Supplies

₱3,000 to ₱5,000

Maintenance

₱2,000 to ₱5,000

Marketing

₱1,000 to ₱3,000

Total

₱37,000 to ₱77,000

How Long Before You Break Even?

Let’s say you invest ₱500,000. When can you expect to get that back?

Here’s a conservative sample:

Metric

Value

25 customers daily at ₱120

₱3,000/day

30 operating days

₱90,000/month

Monthly expenses

₱60,000

Net profit

₱30,000/month

At this rate, your capital could be recovered in 16 to 18 months.

Some laundry owners break even even faster if they’re in high-demand areas.

Common Mistakes First-Time Laundry Owners Make

  • Poor Location Choice
    A good shop in the wrong area won’t get the traffic it needs.
  • Ignoring Plumbing and Water Pressure
    Machines won’t function properly without stable water supply and drainage.
  • No Maintenance Plan
    Equipment downtime can cost you days of income. Schedule regular maintenance.

No Online Presence
Customers search online first. A simple Facebook Page can already bring in traffic.

Smart Ways to Save on Startup Costs

  • Buy quality secondhand machines from trusted sellers
  • Rent a space that already has plumbing and electrical setup
  • Start from home if allowed in your area
  • Begin with one washer-dryer pair and grow gradually
  • Join online laundry owner groups for tips and supplier contacts

Tech and Tools to Simplify Operations

Running a laundry shop doesn’t require fancy systems, but these tools can help:

  • Loyverse POS: For managing daily sales
  • Google Sheets: For staff schedules and inventory
  • Messenger or Viber: For customer orders and pickups
  • Wave or QuickBooks: For simple accounting

These tools help keep things organized and professional even if you’re just starting out.

Frequently Asked Questions (FAQ)

How much capital is needed to start a laundry business in the Philippines?

You can start with ₱150,000 for a home-based setup. A basic full-service shop may require ₱350,000 to ₱600,000. A self-service laundromat could cost ₱700,000 or more.

Yes. Shops in high-demand areas can earn ₱20,000 to ₱50,000 in monthly net profit. It’s one of the most consistent service-based businesses.

You’ll need DTI registration, Barangay Clearance, a Mayor’s Permit, and BIR registration.

Yes, especially for wash-and-fold services. Just make sure local zoning laws allow it and you have proper drainage and power.

Most laundry businesses break even in 12 to 18 months depending on their location and daily customer volume.

Final Thoughts

Now that you know how much it costs to start a laundry business in the Philippines in 2025, you can move forward with confidence. Whether you’re planning a small shop or a full-blown laundromat, understanding your startup and operating costs is the first step toward a successful launch.

Starting lean is possible, and growth will come if you combine good service, efficient operations, and smart budgeting.

If capital is a concern, Radiowealth Finance Company is here to support you. We’ve helped countless Filipino entrepreneurs turn ideas into thriving businesses. Whether it’s for equipment, setup, or expansion, we offer financing that fits your needs.

We don’t just fund machines. We help fund your future.