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The Economics of Public Washrooms: Why Pay-and-Use is Failing

Published on Jul 2, 2026
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If you've ever handed over a ₹5 or ₹10 coin to a caretaker outside a public toilet, you might assume that the facility generates enough revenue to sustain itself. The reality is far more complex, and often, mathematically impossible.

The "Pay and Use" model was introduced as a silver bullet to solve the maintenance crisis. The idea was simple: users pay a nominal fee, and the revenue covers water, electricity, cleaning supplies, and the caretaker's salary. However, across major Indian cities, this model is fundamentally breaking down.

The Mathematics of Maintenance

Let's look at the numbers. A typical public toilet block requires at least two shifts of caretakers to remain open for 16 hours a day. Even at minimum wage, staffing costs alone can exceed ₹30,000 per month. Add electricity, water tankers (because municipal supply is often erratic), and commercial cleaning chemicals, and the baseline operating cost for a single block easily crosses ₹50,000 monthly.

To break even at ₹5 per use, the toilet needs 10,000 paying users a month—over 300 a day. While this is achievable at railway stations or major bus stands, a typical neighborhood or highway toilet sees only a fraction of this footfall. The result? Contractors cut corners. They dilute cleaning supplies, reduce staffing, or lock the doors entirely when water runs out.

Indian Rupee Coins
The math behind ₹5 per use doesn't always add up.
Source: Editorial Collection

A New Paradigm: Cross-Subsidization

We are realizing that sanitation cannot be a purely standalone, profit-driven enterprise. The most successful public toilets in India are those attached to other commercial entities. A washroom at a petrol pump is maintained because it attracts fuel customers. A toilet in a metro station is maintained as part of the transit infrastructure.

Moving forward, urban planners need to look at cross-subsidization. By attaching public toilets to advertising hoardings, ATMs, or small commercial kiosks, the maintenance cost can be absorbed by the revenue from these secondary assets, ensuring the toilet remains free or nominally priced, and crucially, clean.

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Written by Vansh Jain

Founder of Lavvi, India's most trusted public toilet finder. We are on a mission to ensure clean, safe, and accessible sanitation facilities for everyone.