Let’s Talk Numbers - Real Numbers

If you’re running a laundromat and only looking at top-line revenue, you’re only seeing half the picture. The real story of your business, how healthy it is, what it’s worth and where it’s bleeding, is written in your financials. And there’s one metric that laundromat owners absolutely must get intimate with: EBITA.

What is EBITA (and Why Should You Care)?

EBITA stands for Earnings Before Interest, Taxes, and Amortization. It’s a clean, clear way to measure the actual operating performance of your business, stripped of all the noise from how your financing is structured or how you’re handling depreciation.

In simpler terms, EBITA answers this question:

 👉 “If you just look at how well your laundromat is operating day-to-day, without all the accounting magic, how much is it truly earning?”

Why EBITA Beats Net Profit in the Real World

Let’s say your net profit looks low. That might sound like bad news, but if you’re pouring cash into paying down a loan or got hit with some tax timing issues, your net profit can lie to you. EBITA cuts through that and focuses on operational profitability.

For Example:

See that $180,000 EBITA? That tells you the real strength of your store, before interest, taxes, and amortization water it down.

EBITA is Key to Valuing Your Laundromat

Here’s where it gets exciting: EBITA is often used by investors and buyers to determine how much your laundromat is worth.

Valuations often work on a multiple of EBITA. In the laundromat world, that multiple might range from 2.5x to 4.5x EBITA depending on the location, age of equipment, and whether the business runs absentee or owner-operated.

So if your EBITA is $180,000 and your store is semi-absentee with strong systems?

👉 You could be sitting on a $540,000–$810,000 asset.

Let that sink in.

How to Use EBITA in Your Day-to-Day

1. Track it monthly
   Create a simple spreadsheet or use accounting software to get your EBITA each month. Don’t wait for your CPA to tell you at year-end.
2. Use it to set goals
   Want to sell your store in 2 years? Set an EBITA target and work backward. Want to increase your valuation by $100K? Boost EBITA by $25-$40K.
3. Compare stores
   If you own multiple laundromats, EBITA lets you compare apples to apples, regardless of loan structures or tax differences.
4. Spot performance issues early
   A dip in EBITA isn’t just a number drop, it’s a smoke signal. Something’s changed. Pricing, expenses, throughput… you’ll know to dig deeper.
   

Wrap-Up: Numbers Don’t Lie… But They Do Hide

Profit is nice, but EBITA is the heartbeat. It’s the truth serum of your business. If you’re serious about growing, selling, or just understanding the real health of your laundromat, make EBITA a regular part of your financial rhythm.

Need help calculating your EBITA or understanding your store’s value?

We help laundromat owners across the country take control of their numbers, grow their EBITA, and build million-dollar laundromats.

👉 Join the Innovators Lounge and get access to tools, coaching, and conversations that make this whole money thing a whole lot simpler.

Laundry Advisors

Helping you turn your laundromat into a cash-printing, legacy-building machine.