When facilities evaluate new laundry equipment, the conversation often focuses on purchase price. But the real decision should be based on return on investment, or ROI, and how quickly improved equipment pays for itself through savings and increased efficiency.
In many cases, modern high-speed washers and efficient dryers do more than replace equipment. They reduce operating costs every single day.
Here is a simple way to calculate laundry ROI with real-world factors that impact your bottom line.
Step 1: Understand What Actually Creates Savings
Commercial laundry ROI usually comes from five areas.
1) Utility Savings
Modern washers extract more water, which means:
- Less dryer time
- Lower gas consumption
- Lower electrical usage
- Reduced wear on dryers
High-extract washers reduce moisture retention, cutting drying time by 15 to 30 percent in many facilities.
2) Labor Savings
Faster cycle times allow staff to process more laundry per shift.
This can result in:
- Fewer overtime hours
- Reduced staffing needs
- Employees freed up for other tasks
Labor is often the largest hidden expense in laundry op3) Increased Throughput
Faster wash and dry cycles mean:
- More loads per day
- Less waiting
- Higher machine availability
For hotels, apartments, or laundromats, this leads to better customer satisfaction and more revenue opportunities.erations.
3) Increased Throughput
Faster wash and dry cycles mean:
- More loads per day
- Less waiting
- Higher machine availability
For hotels, apartments, or laundromats, this leads to better customer satisfaction and more revenue opportunities.
4) Linen and Textile Life Extension
Modern wash controls and extraction reduce textile damage.
Result:
- Towels and linens last longer
- Replacement costs decrease
- Less waste
5) Reduced Maintenance and Downtime
New equipment:
- Runs more reliably
- Requires fewer repairs
- Keeps operations moving
Downtime costs facilities far more than most realize.
Step 2: Example ROI Calculation
Let’s look at a simplified example using real-world assumptions.
Facility Example
• 60 lb washer running 8 loads per day
• Dryer gas cost reduced due to better extraction
• Dryer time reduced by 5 minutes per load
Annual Dryer Savings
8 loads per day multiplied by 365 days equals 2,920 loads per year.
If each load saves $0.75 in gas and electric costs, annual savings are:
2,920 multiplied by $0.75 equals $2,190 per year per washer.
If you operate multiple machines, savings multiply quickly.
Labor Savings Example
If faster processing saves 15 minutes of labor per day:
0.25 hours per day multiplied by $20 per hour multiplied by 365 days equals $1,825 per year in labor savings.
Combined Savings Per Machine
Utility savings: about $2,190 per year
Labor savings: about $1,825 per year
Total annual savings are approximately $4,000 per machine.
Step 3: Calculate Payback Period
If upgraded equipment costs $20,000 more than lower-speed alternatives:
$20,000 divided by $4,000 per year equals a 5-year payback.
After that, the savings continue every year.
Many facilities see payback even sooner when factoring in:
- Linen savings
- Maintenance reduction
- Increased laundry throughput
Step 4: Questions Every Facility Should Ask
When evaluating laundry equipment, ask:
• How much dryer time will be reduced?
• How many loads do we process per day?
• What is our labor cost per hour?
• How often do we replace linens?
• How much downtime do repairs cause?
The answers usFinal Thought: Buy Value, Not Just Equipment
The lowest-priced machine is rarely the lowest-cost machine over time.
Laundry equipment runs every day. Small efficiency gains compound into tens of thousands of dollars saved over a machine’s lifespan.
A proper ROI analysis helps facilities invest confidently and operate more efficiently long term.ually show that operating cost matters more than purchase price.
Final Thought: Buy Value, Not Just Equipment
The lowest-priced machine is rarely the lowest-cost machine over time.
Laundry equipment runs every day. Small efficiency gains compound into tens of thousands of dollars saved over a machine’s lifespan.
A proper ROI analysis helps facilities invest confidently and operate more efficiently long term.
Need Help Calculating Your Laundry ROI?
Wash Automated works with hotels, apartments, healthcare facilities, and laundromat owners to evaluate:
✔ Equipment efficiency
✔ Utility savings
✔ Labor optimization
✔ Layout improvements
✔ Replacement planning
We are happy to review your operation and provide recommendations.
Contact Wash Automated for a no-cost laundry evaluation. 800-422-0380 or Info@WashAutomated.com
