Hotel laundry cost calculator

Put every line of an on-premise laundry — burdened labor, water and sewer, energy, chemicals, linen replacement and equipment — into one cost per pound, one laundry cost per occupied room, and the vendor rate at which outsourcing breaks even.

Volume and labor

rms
lb

Weigh a week of carts to get your own PPOR

days
hrs
$/hr
%

Cost per pound inputs

$/lb
$/lb
$/lb
$/lb

Wash-related loss, rejects and rag-out

$/mo
$/lb
All-in laundry cost
$0.506

per pound processed in house

Pounds per day
1,776 lb
Laundry cost per occupied room
$6.07
Labor per pound
$0.192
Utilities per pound
$0.150
Chemicals and linen per pound
$0.130
Equipment per pound
$0.034
Pounds per operator hour (PPOH)
111 lb
In-house cost for the period
$26,966
Outsourced cost for the period
$33,034

At $0.62 per pound, outsourcing is $6,067 more expensive than your own laundry over the period. Break-even vendor rate: $0.506 per pound.

What a hotel laundry cost calculator should include

An on-premise laundry (OPL) cost per pound is the sum of burdened labor, water and sewer, gas and electric, chemicals, linen replacement and equipment cost, divided by pounds processed. Vendor quotes are all-in per pound, so a comparison that leaves out linen replacement or payroll burden will always flatter the in-house option.

Volume comes from occupancy, not from the laundry

Poundage is driven by pounds per occupied room (PPOR) and the number of occupied rooms, so the same laundry has a different cost per pound in a soft month. Model the rooms side first with the housekeeping staffing calculator and set stock levels with the linen PAR calculator, because a thin PAR forces rush cycles that raise both labor and linen replacement.

How this calculator works

Calculation steps used by this tool
OutputFormula
Pounds per dayOccupied rooms × pounds per occupied room
Burdened labor per dayOperator hours × wage × (1 + benefit load %)
Labor per poundBurdened labor per day ÷ pounds per day
Equipment per poundEquipment cost for the period ÷ pounds for the period
Cost per poundLabor + utilities + chemicals + linen replacement + equipment, all per pound
Laundry cost per occupied roomCost per pound × pounds per occupied room
Break-even vendor rateEqual to your in-house cost per pound

Assumptions and limits

  • No default utility or chemical rates are supplied. The starting figures are placeholders to show the shape of the math. Replace them with your own invoices before you make a decision.
  • Rent, space and management overhead are excluded. They usually do not disappear when you outsource. Add them only if you would genuinely recover the space or the salary.
  • Outsourcing is not only a price question. Turnaround time, linen quality, loss policies, delivery frequency and PAR requirements all change when the laundry leaves the building — a thinner PAR is rarely viable with an outside vendor.
  • Verify PPOR by weighing. Weigh soiled carts for a full week across departure-heavy and stayover-heavy days rather than using a published average.

Hotel laundry cost questions