Default planning assumptions
- Monthly rental per set$85
- Rented sets120
- Acquisition cost per set$250
- Delivery and installation per set$75
- Repair reserve per set$15/month
- Insurance$58.33/month
- Estimated monthly churn1.5%
Appliance rental business
Estimate recurring revenue, monthly operating costs, growth spending, profit, churn, and startup payback for a washer and dryer rental business.
The starting example uses 120 rented sets at $85 each for $10,200 in monthly revenue before expenses. The interview reports about 120 sets and rates of $60 for used sets and $85 for new sets. This example applies the higher rate to the entire fleet; the actual mix and average rental rate were not provided. At $60 per set, the same fleet produces $7,200. Enter your own average rate.
Enter the monthly price for one washer-and-dryer set and the number of sets currently rented. Add your acquisition, delivery, repair, storage, truck, fuel, processing, churn, and fleet-growth assumptions.
The calculator shows operating profit separately from cash after new set purchases. Acquisition and delivery costs for newly purchased sets reduce the cash result, not operating profit. Enter only the sets you expect to buy this month in “New sets added per month”; use zero if you are making no purchases. Include replacement purchases here too.
Results are planning estimates, not guaranteed income. Use quotes and actual operating records before buying inventory.
Monthly revenue = monthly rental price × rented sets.
Repair reserve = repair reserve per set × rented sets.
New-set investment = (acquisition cost + delivery/install cost) × new sets added.
Operating profit before owner pay and tax = revenue − repair reserve − storage − truck/fuel − processing − insurance.
Monthly cash after new set purchases = operating profit − new-set investment.
Annualized operating profit estimate = monthly operating profit × 12, assuming the same activity and costs each month. New-set purchases are not deducted from this annualized figure.
Startup payback estimate = (acquisition cost + delivery/install cost) × rented sets ÷ monthly operating profit. This simplified estimate covers the entered rented fleet and its initial delivery cost; it does not account for ongoing fleet purchases, idle inventory, or other startup costs. It is not a forecast of when all invested cash will be recovered.
The result does not automatically include every tax, unpaid balance, or owner wage. Add omitted expenses by increasing the closest monthly-cost input or subtracting them separately.
At the default inputs, 120 rented sets at $85 per month produce $10,200 in monthly revenue. The $1,800 repair reserve, $200 storage cost, $250 truck/fuel cost, $50 processing cost, and $58.33 insurance cost total $2,358.33, leaving $7,841.67 in operating profit before owner pay and tax. Buying five sets at $250 each plus $75 delivery/install per set uses another $1,625, leaving $6,216.67 in monthly cash after new set purchases.
With no new purchases, operating profit stays at $7,841.67 and cash after purchases is also $7,841.67 at these same rental and operating-cost inputs. Changing new-set purchases alone changes cash after purchases; it does not change operating profit or the displayed startup payback. Newly purchased sets do not automatically increase rented sets or revenue. Update “Number of rented sets” separately to model a different active fleet.
A monthly rental price may need to cover delivery, installation, replacement response, collection risk, retrieval, and customer support—not merely the appliance purchase price. Compare monthly price, minimum term, delivery fee, deposit, and repair responsibilities together.
Who owns the appliances during the rental? Who is allowed to install them? What happens after nonpayment, damage, a leak, or a move-out? How quickly will you repair or replace a failed machine? A written rental agreement and appropriate insurance matter as much as the calculator.
Landlord or property-manager relationships may reduce customer-acquisition work, but they can also create response-time and billing expectations. Confirm the economics and responsibilities in writing.
Estimate monthly rental revenue, then subtract repair reserves, storage, truck and fuel costs, insurance, and payment processing to get operating profit before owner pay and tax. Subtract newly purchased sets and their delivery/install costs separately to get monthly cash after new set purchases.
Start with a conservative per-set monthly reserve based on equipment age and condition. Replace the default with actual service history once you have enough rentals to measure it.
Delivery labor, stairs, hoses and cords, storage, missed payments, retrieval, cleaning, damage, theft, truck time, insurance, taxes, and idle inventory are commonly overlooked.
They may create repeat rental opportunities, but written terms, response times, installation responsibilities, and payment arrangements should be clear.
Kyler describes about 120 rented sets, $60 monthly pricing for used sets, $85 for new sets, and $700 in annual insurance—about $58.33 per month. The discussion estimates monthly churn at roughly 1.5%. These are reported figures from one business, not typical results.
He discusses used sets sourced for $0–$200 and around $300 for sets with a supplier warranty. The calculator retains a $250 acquisition allowance and $75 delivery/install allowance as editable planning estimates. Repair reserves, storage, truck/fuel, processing, and monthly purchases are also assumptions, not his reported expense breakdown. Free delivery to the customer does not mean delivery has no cost to the operator.
The interview introduces the business as making $10,000 a month, but does not provide a complete expense statement establishing that amount as net profit. The calculator therefore shows revenue and estimated profit separately.
Operating profit excludes new-set purchases; monthly cash after new set purchases subtracts their acquisition and delivery/install costs separately. Revenue uses the entered active rented sets for a full month. Churn is a separate planning count and does not automatically reduce revenue or add costs. Reduce active rented sets to model vacancies. The delivery/install input applies only to newly purchased sets; account separately for retrieval, redelivery of existing sets, and other costs not included in the inputs.