"How much money can I make from a vending machine?" It's the first question every aspiring operator asks—and the answer you'll find online ranges from "$50/month" to "$500/month" with little explanation of how to get there.
After running vending machines myself and talking to hundreds of operators, I've learned that the real answer depends on a handful of key variables. Let me break down exactly how to calculate your potential profit.
The Basic Profit Formula
Vending machine profit is simple math:
Profit = Revenue - Cost of Goods - Operating Expenses - Commission
Let's break down each component with realistic numbers.
Revenue: What Can You Expect?
Revenue depends primarily on location foot traffic and product pricing. Here's what I've seen across different location types:
| Location Type | Monthly Revenue | Transactions/Day |
|---|---|---|
| Office (50-100 employees) | $200-400 | 5-15 |
| Manufacturing/Warehouse | $400-800 | 15-30 |
| Gym/Fitness Center | $300-600 | 10-25 |
| Laundromat | $150-350 | 5-12 |
| Hotel/Motel | $250-500 | 8-20 |
| High-Traffic Retail | $600-1,200+ | 25-50+ |
Key insight: A "good" location does $400-600/month in revenue. An "excellent" location does $800+. Anything under $200/month is usually not worth servicing.
Cost of Goods Sold (COGS)
Your product cost typically runs 40-55% of revenue, depending on what you stock and where you buy it.
| Product Type | Typical Cost | Sell Price | Margin |
|---|---|---|---|
| Candy/Chips (wholesale) | $0.50-0.75 | $1.50-2.00 | 50-65% |
| Soda (cans) | $0.30-0.40 | $1.25-1.75 | 70-75% |
| Bottled Water | $0.15-0.25 | $1.50-2.00 | 85-90% |
| Energy Drinks | $1.50-2.00 | $3.00-3.50 | 40-50% |
| Healthy Snacks | $0.80-1.20 | $2.00-2.50 | 50-60% |
Pro tip: Buying from wholesale clubs (Costco, Sam's Club) or distributors can drop your COGS by 10-20% compared to retail.
Operating Expenses
These are the costs most new operators underestimate:
- Gas/Transportation: $15-50/month per machine (depends on route density)
- Card Reader Fees: 5-10% of card transactions (if you accept cards)
- Spoilage/Theft: 1-3% of inventory
- Repairs/Maintenance: $10-30/month average (amortized)
- Insurance: $5-15/month per machine
Total operating expenses: Typically $50-100/month per machine.
Commission (Location Fee)
Many locations require a commission—a percentage of sales paid to the property owner. Common structures:
- No commission: Smaller offices, some gyms
- 10-15%: Standard for most locations
- 20-25%: High-traffic locations, hotels
- Flat fee: $50-100/month (less common)
Putting It All Together: Sample Calculations
Scenario 1: Average Office Location
| Monthly Revenue | $350 |
| Cost of Goods (50%) | -$175 |
| Operating Expenses | -$60 |
| Commission (10%) | -$35 |
| Monthly Profit | $80 |
Scenario 2: Good Manufacturing Location
| Monthly Revenue | $600 |
| Cost of Goods (45%) | -$270 |
| Operating Expenses | -$70 |
| Commission (15%) | -$90 |
| Monthly Profit | $170 |
Scenario 3: Excellent High-Traffic Location
| Monthly Revenue | $1,000 |
| Cost of Goods (45%) | -$450 |
| Operating Expenses | -$80 |
| Commission (20%) | -$200 |
| Monthly Profit | $270 |
ROI: How Long to Pay Off a Machine?
A new vending machine costs $3,000-6,000. A quality used machine runs $1,500-3,000. Here's how long it takes to pay off:
| Machine Cost | Monthly Profit | Payoff Time |
|---|---|---|
| $2,000 (used) | $100 | 20 months |
| $2,000 (used) | $170 | 12 months |
| $4,000 (new) | $170 | 24 months |
| $4,000 (new) | $270 | 15 months |
The sweet spot: Most operators aim for 12-18 month payoff. After that, it's mostly profit (minus ongoing expenses).
How to Maximize Your Profit
- Focus on location quality over quantity. One $600/month machine beats three $150/month machines.
- Optimize your product mix. Track what sells and cut what doesn't. High-margin items like water and soda boost profits.
- Reduce service trips. Dense routes and reliable machines mean less gas and time.
- Negotiate commissions. Start at 10% and only go higher for proven high-traffic spots.
- Buy smart. Wholesale clubs and distributor relationships save 10-20% on COGS.
Track Everything to Know Your Real Numbers
The calculations above are estimates. Your actual profit depends on your specific locations, products, and efficiency. The only way to know your real numbers is to track everything—revenue, costs, expenses, and time.
That's exactly why I built VendHub. Instead of guessing or maintaining complex spreadsheets, you can see your actual profit per machine, per location, in real-time.
Know Your Real Numbers
Stop guessing at your vending profits. VendHub tracks revenue, costs, and expenses so you always know exactly what each machine is making.