How Much Passive Income Can My Business Make With an ATM?

Author Justin Gilmore

For all kinds of businesses, both big and small, an ATM can be a great way to add an extra source of revenue. Once you pay the upfront costs for the machine itself, most of the money from collecting surcharges is pure profit. So, just how much can your business make from having an ATM? Well, it’s not an exact science, as there are a number of variables based on different locations. However, there are formulas that you can apply, depending on your business.

Foot traffic formula

If you believe you have enough foot traffic at or near your business to warrant an ATM machine, the general rule is that roughly 4% of people who see the machine will use it. Obviously, there are no guarantees, but over an extended period of time, the rule of averages should come out to somewhere in the area of 4%. So, multiply your surcharge by four and that’s roughly the income your ATM will bring in for every 100 people who see it. If you know how much foot traffic your business gets, you can extrapolate that amount over a longer period of time.

Customer volume formula

Another formula for calculating ATM income is based on the number of customers that frequent your business. Count up the number of customers your business gets in a given day and it’ll be roughly equivalent to the number of people who will use your ATM in a month, give or take about 10%. However, if your store gives cash back or has a high volume of customers who pay via credit card, you may not make quite as much as this formula may indicate.

Hotel or residential building formula

Hotels and residential buildings are a common location for ATMs, as they help to serve your guests or residents. For these buildings, you’ll want to take the number of rooms or apartments and multiply it by your average percentage of occupancy to give you your expected amount of ATM users in a month. Obviously, there are a number of variables for hotels, but for most midsize or large hotels, there is typically enough guests to warrant an ATM.

Commercial building formula

Commercial buildings have a similar formula for hotels. However, you have to take the number of total workers in the building and multiply it by the number of workdays, as few people will be in the building on weekends and holidays. This makes it a little harder to calculate than hotels or businesses that may be open seven days a week. However, if the commercial building is large enough, an ATM should bring in enough passive income to justify having one.

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