How Much Does It Cost To Open A Gym?

Last Updated on March 26, 2025
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

If you dream of leaving the corporate grind behind and opening your own gym, you’re not alone. Gym ownership lets you help people achieve their fitness goals while doing work you’re passionate about. But launching any successful business requires smart planning, realistic budgeting, and a commitment to hard work.

This guide covers all the potential startup and ongoing costs involved in getting a gym off the ground. We’ll provide estimated price ranges for essential investments like equipment, real estate, buildouts, staffing, and legal compliance. Read on for a detailed cost breakdown, budgeting tips, and real-world insights into gym profitability.

How Much Does It Cost To Open A Gym?

The total cost to open a gym ranges from about $30,000 for a basic personal training studio to over $1 million for a large fitness franchise location, with the average startup cost for most full-service gyms falling between $100,000 to $500,000 depending on size and services. The high end of the range factors in equipment, facility leasing and buildout, operating reserves, legal compliance, insurance, software systems, and any franchise fees.

The costs to launch a gym can range widely, from tens of thousands to over half a million dollars. Consider how these variables affect your budget:

Type of Gym or Business Model

The costs to open a gym vary widely depending on your business model:

Traditional Gyms outfitted with weights, cardio gear, and class spaces average $100,000 – $300,000 to start. You need sufficient room and equipment for diverse training options.

Boutique Studios focusing on niche exercises like yoga, cycling, or boxing require less equipment. But specialized build-outs and branding push startup costs to $50,000 – $150,000.

Personal Training Studios only need limited gear, but high insurance costs for 1:1 training reach $30,000 – $75,000 in investment.

Franchise Gyms like Planet Fitness provide brand recognition and support, but carry high franchise fees totaling over $250,000.

Location and Facility Size

Facility costs directly correlate with size. A large suburban gym will cost much more than a compact city studio in terms of rent, equipment and buildout. Factor in your market too.

Equipment Selection

Outfitting with all new, premium equipment costs far more than buying quality used gear or leasing options. Used cardio gear is 50-70% cheaper than new.

According to Exercise.com, the cost to open a gym ranges from $5,000 for a modest home-based gym to over $1,000,000 for expansive full-service commercial gyms. Mid-range options like boutique fitness studios or franchise gyms typically cost between $100,000 and $500,000, while specialty studios such as yoga or Pilates centers can be set up for $15,000 to $50,000. Important expenses include equipment (ranging from $50,000 to $500,000+), real estate costs ($5,000 to $50,000 per month), renovations ($10,000 to $500,000+), and marketing ($5,000 to $50,000+).

On Trafft, gym start-up costs are reported to range from $15,000 to $100,000, depending on whether the gym is rented or owned. Monthly rental costs can vary between $3,500 and $7,500, with security deposits spanning $21,000 to $45,000 for 3–6 months of rent. Utilities add another recurring expense of $1,500 to $4,000 per month, making location and demographics critical factors in managing finances.

The article on Upmetrics estimates that opening a traditional gym costs between $86,000 and $229,000, while boutique fitness studios or CrossFit gyms may require investments ranging from $150,000 to $800,000 or more, depending on size and location. Monthly lease payments range from $3,500 to $7,500, with utility bills adding an additional $1,500 to $4,000 per month.

According to TeamUp, US gym startups should expect initial expenses between $245,000 and $400,000, including property costs and equipment. These figures reflect the investment needed for mid-size facilities offering diverse services.

Lastly, Gymdesk reports that opening a gym typically costs between $245,000 and $400,000, with property deposits ranging from $45,000 to $90,000 for leases or $105,000 to $150,000 for purchases. Equipment leasing costs range from $2,000 to $3,000, while purchasing equipment can significantly increase expenses.

Rent, Leases and Buildout

Securing an appropriate commercial property or retail space represents one of the largest startup investments for a new gym. Consider:

Base Monthly Rent – Expect to pay $2-5 per sq ft in base rent for an unfinished space suitable for a gym depending on location and market. A 2,000 sq ft gym would run $4,000 – $10,000 monthly. Be sure to negotiate allowances for buildout into the lease.

Buildout and Renovations – Gym layouts require customized spaces like workout zones, locker rooms, shower facilities, bathrooms, etc. Buildout costs range from $20 – $60 per sq ft for materials and contractors. A 5,000 sq ft gym could require $100,000 – $300,000 in renovations.

Multi-Year Lease Commitments – Landlords often require guarantees of 5, 10 or even 20 year leases for commercial properties. This ensures stability but represents a major financial commitment for your gym. Negotiate early termination clauses if possible.

Zoning, Permits and Regulations – Consult your city planning office on zoning laws and permits like occupancy approval and commercial development plans. Expect fees of $2,000 – $10,000 for permits, architectural plans and inspections.

Gym Equipment Costs

Outfitting your gym with diverse, commercial-grade equipment entails significant capital:

Cardio Machines

• Treadmills – $2,500 – $7,000 new, $800 – $2,000 used
• Ellipticals – $3,000 – $6,000 new, $900 – $2,500 used
• Exercise bikes – $1,500 – $4,000 new, $400 – $1,200 used
• Rowing machines – $2,000 – $4,000 new, $600 – $1,500 used

Lease options can save upfront costs.

Strength Equipment

• Dumbbells – $1,000 – $4,000 for a full rack set
• Kettlebells – $100 – $150 each
• Weight benches – $300 – $600
• Power racks – $1,000 – $3,000
• Cable machines – $1,500 – $8,000

Shop for quality used free weights and racks to save.

Additional Training Gear

TRX systems, medicine balls, foam rollers, mats, boxes, ropes, sleds, bands and more cost $5,000 – $15,000 for a well-equipped area. Choose gear aligned with your programming.

Service and Warranties

Factor $500 – $2,000 per year for commercial equipment service contracts and repairs.

Staff, Software and More

Running your gym smoothly requires investing in qualified staff, management tools and upkeep:

Employee Salaries and Benefits

With trainers, childcare staff, janitorial, front desk, management and more, payroll often exceeds $7,500 per month for a 10–15-person team. Offering health insurance or retirement plans adds costs.

Gym Management Software

All-in-one software for membership management, point-of-sale, scheduling and workout tracking costs $200 – $500 monthly. Budget $3,000 – $5,000 for setup and customization.

You might also like our articles about the cost of opening a car wash, beverage company, or Pret-a-Manger franchise.

Utilities and Maintenance

Keep $5,000 – $10,000 available annually for covering utility bills, HVAC system maintenance, cleaning supplies, garbage pickup and miscellaneous repairs.

Licenses, Insurance and Legal Considerations

Don’t overlook the legal aspects of starting your gym:

Business Structure and Registration Fees

Filing as an LLC costs $500 – $2,000 including state registration and drafting operating agreements. An attorney provides expertise.

Business Licenses and Health Permits

Register your gym with the city or county for required business licenses, typically $50 – $500 initially with modest annual renewals.

Health departments also inspect for compliance. All told, plan $2,000 – $7,000 in permitting expenses.

Insurance Coverage

Secure general liability, professional liability, property and workers’ comp policies. Expect at least $3,000 – $8,000 in annual premiums.

Franchise Considerations (If Applicable)

Joining a franchise like Anytime Fitness or Planet Fitness requires significant upfront and ongoing investment:

Franchise Fees

You’ll pay a one-time franchise fee of $10,000 – $75,000 to use their branding, systems and processes.

Royalties

Also factor ongoing royalty payments of 5-10% of your gym’s gross revenue back to the franchisor.

In return you gain instant brand recognition, marketing support, equipment discounts and gym setup guidance.

Financing Your Gym startup

With six-figure startup costs, many gyms need funding help through:

Small Business Loans and Credit – Banks may offer SBA-backed loans with favorable terms or business lines of credit up to $250,000 with good credit.

Fitness Industry Partners and Investors – Connecting with gym industry mentors or private investors provides capital in exchange for equity stakes.

Equipment Leasing – Leasing essential gear like treadmills lets you spread costs over 3-5 years.

Personal Savings and Credit – Some entrepreneurs fund startups from savings or personal loans before seeking outside financing. Have at least 50% of needed capital on hand.

Detailed Gym Budget Examples

Here are three sample startup budgets based on real scenarios:

1) Barebones Personal Training Studio

• Used equipment and mats: $15,000
• Simple buildout of office space: $5,000
• 3 months rent security deposit: $3,000
• Liability insurance, license: $2,000
  -Website, gym software deposit: $1,000
• Marketing materials, branding: $1,000
• Additional operating capital: $3,000

Total: $30,000

This scales up with 1:1 training revenue.

2) Mid-Size Multi-Purpose Gym

• 2,000 sq ft suburban retail lease: $120,000
• Equipment for weights, cardio, classes: $75,000
• Lockers, showers, custom buildout: $60,000
• 3 months operating expenses: $30,000
• Licensing, permits, insurance: $10,000
• Gym software, POS system: $5,000
• Legal, architect fees: $5,000
• Advertising, grand opening: $10,000

Total: $315,000

Takes at least 150+ members to break even.

3) Large Fitness Franchise Gym

• Purchase and update 5,000 sq ft facility: $1,000,000
• New premium equipment: $250,000
• Buildout including childcare area: $125,000
• 6 month operating reserve: $100,000
• Franchise fee and branding: $50,000
• IT, security, software upgrades: $75,000
• Advertising and lead generation: $100,000

Total: $1,700,000+

Significant upfront investment but strong systems in place.

Final Words

While startup costs are daunting, successful gyms can achieve 20-30% profit margins once membership revenue outpaces expenses. But budget 12-24 months to break even. Maximize revenue through personal training, classes, supplements and other sales. Member retention is critical, so invest in excellent service and community.

For those with passion for fitness and business savvy, startup gym ventures hold exciting profit potential. Perform in-depth financial planning and partner with experienced gym entrepreneurs or consultants before diving in.

Answers to Common Questions

How profitable is opening a gym?

Established gyms can achieve 20-30% profit margins. But most don’t break even for 12-24 months after covering substantial startup costs. Maximize revenue streams beyond memberships.

What does it cost to build a personal home gym?

For a garage or basement home gym, expect to spend $2,000-$5,000 for quality used equipment like a rack, bench, weights, cardio machine, and rubber flooring.

Is opening a gym a risky business?

Yes, gyms face many inherent risks like high fixed costs, customer churn, shifts in exercise trends, and reliance on membership sales. Success requires tenacity, substantial startup funding, and excellent business management.