Thinking of starting a laundry business in 2025? You’re not alone.
More Filipinos are exploring small business opportunities, and laundry shops remain one of the most practical ventures. The demand for clean clothes is constant, especially in urban areas where working professionals, students, and families are often too busy to do their own laundry.
But how much does it really cost to start a laundry business in the Philippines today?
This guide breaks down everything you need to know about startup costs, types of setups, and what to expect in your first few months.
Is the Laundry Business Still Worth It in 2025?
Yes, and even more so now.
Laundry shops have proven to be resilient, even during challenging periods like the pandemic. With the growing urban population and rising demand for convenience, a well-run laundry business can offer a steady income and a solid return on investment.
Many entrepreneurs report recovering their initial investment within 12 to 18 months, depending on location and business model. It’s a business that meets an essential need, making it a smart choice for aspiring entrepreneurs.
What Type of Laundry Business Can You Start?
Before calculating costs, it’s important to define the kind of laundry business you want to run. Each model has its own setup requirements and capital range.
Type of Business | Description | Approximate Cost |
Self-Service Laundry | Customers operate machines on their own | ₱1 million to ₱2.5 million |
Full-Service Laundry | Staff handles washing, drying, and folding | ₱500,000 to ₱1.2 million |
Home-Based Laundry | Operate from your home using basic equipment | ₱150,000 to ₱300,000 |
Pick-Up & Delivery | Offer door-to-door laundry services | ₱200,000 to ₱500,000 |
Many first-time entrepreneurs start with a home-based or small full-service model to test the market before scaling up.
Breakdown of Startup Costs in 2025
Here’s a practical breakdown of the most common costs involved in launching a laundry business this year.
Business Registration and Permits
- DTI or SEC Registration: ₱500 to ₱2,000
- Barangay Clearance: ₱500 to ₱1,000
- Mayor’s Permit: ₱2,000 to ₱5,000
- BIR Registration and Books: ₱2,000 to ₱3,000
Estimated total: ₱5,000 to ₱11,000
Equipment and Machines
- Industrial Washing Machine: ₱100,000 to ₱180,000
- Industrial Dryer: ₱90,000 to ₱160,000
- Ironing Equipment and Tables: ₱5,000 to ₱15,000
- Racks, Baskets, and Other Tools: ₱5,000 to ₱10,000
Estimated total for two machine sets: ₱400,000 to ₱700,000
Entrepreneurs on a budget often look for slightly used machines from reliable resellers. It’s a practical way to reduce startup costs without compromising quality.
Renovation and Shop Setup
Costs for renovations can vary, especially if your space needs plumbing, flooring, signage, or electrical rewiring.
Estimated cost: ₱50,000 to ₱150,000
Rent and Lease Costs
Rental costs depend on location. A small shop in a residential barangay might cost ₱10,000 per month, while a shop in a commercial area could range from ₱25,000 to ₱50,000 monthly.
Most landlords require two to three months’ advance and deposit.
Estimated initial rental cost: ₱75,000 to ₱150,000
Staff Wages
If running a full-service setup, you’ll likely need at least one staff member to assist with washing, drying, and customer service.
- Helper or attendant: ₱8,000 to ₱12,000 per month
You can choose to start solo and hire staff later as demand increases.
Utilities and Supplies
Recurring monthly expenses include:
- Electricity: ₱6,000 to ₱10,000
- Water: ₱3,000 to ₱6,000
- Detergents and supplies: ₱3,000
- Miscellaneous: ₱1,000 to ₱2,000
Estimated monthly operating cost: ₱15,000 to ₱25,000
Sample Budgets by Setup Size
Here’s a summary of how much you may need depending on your chosen business model.
Setup Type | Home-Based | Full-Service | Self-Service |
Equipment | ₱120,000 | ₱400,000 | ₱1.2 million |
Registration | ₱6,000 | ₱8,000 | ₱10,000 |
Rent & Renovation | ₱30,000 | ₱100,000 | ₱200,000 |
Operating Supplies | ₱10,000 | ₱20,000 | ₱30,000 |
Total | ₱166,000 | ₱528,000 | ₱1.44 million |
The flexibility of laundry businesses makes it accessible for a wide range of budgets. Starting small is not only possible, but also advisable for many new business owners.
Earning Potential and ROI
The average laundry shop charges around ₱30 per kilo. If you process 50 kilos a day, that’s ₱1,500 in daily sales or ₱45,000 monthly.
After deducting expenses, a shop can earn a net profit of ₱15,000 to ₱25,000 per month in the early stages, with higher potential as customer volume increases.
One laundry shop owner in Laguna shared that she started with a single washer in her garage and served only neighbors. After one year, she added a second machine and expanded her services. Today, she handles over 100 kilos of laundry per week and earns more than her old office job.
How to Reduce Startup Costs
- Buy second-hand machines from trusted sellers or refurbishers.
- Use energy-efficient appliances to cut down electricity bills.
- Start from home to eliminate rental costs.
- Outsource delivery using motorbike riders instead of hiring full-time staff.
- Partner with local stores to accept drop-offs and pick-ups.
Smart planning and creative problem-solving can make your investment stretch further.
Where to Get Funding or Capital
Access to startup capital is often the biggest challenge for aspiring business owners. Fortunately, there are private financing options available that cater to MSMEs in the Philippines.
One such option is Radiowealth Finance Company (rfc.com.ph), which offers small business loans and equipment financing with flexible payment terms. This can be a good fit for entrepreneurs who need fast and practical funding to get their laundry business off the ground.
When applying for financing, make sure you have the essentials in place: valid IDs, business permits (if available), and a simple breakdown of how you’ll use the funds.
Final Thoughts
Starting a laundry business in the Philippines in 2025 remains a strong and practical business move. Whether you’re planning a small home-based setup or a full-service laundry shop, understanding your costs and making data-informed decisions is key.
With the right location, quality service, and smart budgeting, you can build a profitable and sustainable venture in just a few months.
MSME Philippines is committed to helping entrepreneurs like you make informed decisions. Whether you’re just starting out or looking to grow, our guides aim to provide clear, actionable insights for Filipino business owners.