Is the 1/2 bath for guests or just family ?

PLease don't use screen shots to post? They do not blow up for those on a computer.

Why does the half bath need to be combined with a laundry?! I can think of nothing worse, but that's me.

Show a plan for the gut, maybe a better solution? We don't even know the question?!

What IS the question,?

Show the entirety of the plan, and in jpeg drawing and to scale......below

I think you are adding a counter to the left of toilet as a folding counter? Is that an optimal location (e.g. would a utility sink in a long counter to the right of toilet be better if there must be this scenario)? If you have front load W/D, is there room on top for a counter? Since you are expanding by 3' anyway, is there a way for a separate laundry room/area?

the drawing is too small to see.

Is there any outside walls?

Do you have existing plumbing? or will it be all new?

I get it if this is the only place to stick the W/D because of water hook ups and other limitations. But exit the room and go elsewhere for folding - dining room table, coffee table. Not next to a toilet.

Will you provide dimensions and whether the toilet and plumbing can be moved around or not? The space can work, but we need info to help you.

Plumbing can be moved anywhere 7 1/ by 81/2 is room dimensions. And the door was changed to pocket door on the 71/2 in middle