How much does it cost to open a gym?

Fitness is your passion—now it’s time to make it pay the bills.

Opening your own gym is an ambitious and rewarding venture, but the biggest question is: “how much does it cost to open a gym?” Gym startup costs vary greatly depending on the size and type of operation you want to run.

That’s why we’ve created this worksheet and companion guide to determine the cost to set up a gym and calculate the details of what it will take.

Here’s what we’ll cover:

Breaking down gym startup costs

So, how much does it cost to start a gym? To answer that, you’ll first have to figure out what kind of gym you have in mind, and where.

A modest studio gym in a small town might cost significantly less to get off the ground than a mid-sized or large gym in an affluent suburb or urban area.

That said, as a rough estimate, you can expect an initial investment of £75,000-£120,000 in upfront costs to open your gym.

And how much does it cost to build a gym from the ground up? For that, you’ll have to raise the financial estimates by a wide margin.

Take into consideration factors such as square footage, location, and whether or not you’ll rent or own the gym you’re building.

Your costs could range from several hundreds of thousands of dollars—all the way up to several million pounds in some cases.

If you’re franchising, a typical initial investment can range from £19,950 (low-end) to between £1.7 million and £3.8 million for a high end establishment.

Regardless of your particular business path, it’s helpful to break down the costs into two categories: one-time startup costs and recurring costs.

One-time costs

Make no mistake, the initial costs of opening a gym aren’t cheap.

However, your wellness venture may or may not need to consider every item on this list, so feel free to pick and choose the applicable items and add them to your worksheet.

Physical location

This cost will vary greatly depending on desired size and location of your gym, as well as your decision to rent or purchase the building.

Aside from space for weights and machines, you may wish to include space for cardio, yoga, or spin classes. Additionally, you might provide locker rooms, showers, and a sauna.

If you’re buying, you will most likely need to cover a deposit of 25% of the property value, with average amounts ranging from around £21,250-£407,978 (plus additional taxes and renovations).

Average rental deposits (six months of rent) are in the range of £2,304 – £68,472.

Gym equipment

This cost similarly has a large range, depending on the amount and type of equipment you want.

As a rough estimate, your you’ll likely need to spend around £40,000 to buy equipment for 20 members.

Be sure to shop around—and keep in mind you can often get a discount if you purchase the equipment in sets as a complete package.

Licences, permits, and certifications

There is no specific, overarching licence needed to open a gym, but you will need to register your business.

Registering as a sole trader or a business partnership is free, whereas registering a limited company costs £50 online.

You might need various other licences and permits, including planning permission (if you’re changing the use of a building), music licencing (if you plan to play music in the gym), and a food hygiene permit (if you will be selling or preparing food and drink).

You’ll also want to make sure you comply with health and safety regulations, including doing risk assessments and having the appropriate insurance in place.

Don’t forget to check that the personal trainers and other gym staff you hire are properly qualified.

Legal and consulting fees

You may need professional help negotiating your lease, closing the property sale, or just muddling through the necessary licences and permits for your gym.

Expect to pay around £200 per hour for these services.

Point of Sale (POS) system

You’ll need to get set up with a POS system to accept customer payments, as well as proper gym management software to keep your business running smoothly.

You can expect to pay around £20-£200 per handheld card reader, and anywhere from £250 to over £1,000 for a countertop terminal or full till system.

Signage

Here’s an opportunity to get creative and this cost will vary a lot based on your specifications, like size, design, and materials used.

As a rough average, you should count on spending between £450 and £3,000 for a 1m x 5m shop sign that’s suitable for external use.

Employee uniforms

This is another cost that is entirely up to you.

You generally want some uniformity across staff wardrobe, but for a gym, simple workout clothes and company logo shirts are typically the norm.

If you’re planning on supplying your team with a few polo shorts or t-shirts and perhaps a hoodie or jacket, with your logo on them, £30-£80 per staff member might be a realistic ballpark cost.

But it could be less or significantly more, depending on the uniform requirements and quality.

Merchandise

Don’t overlook a great opportunity to offer customers supplies and merchandise. Think t-shirts, supplements, protein shakes and powders, water, etc.

Make sure you budget in the cost of the initial stock.

As an example, a startup stock of merchandise—including 50 branded t-shirts, 20 branded hoodies, 100 branded plastic sports bottles, and 50 branded microfibre gym towels—would be around £1,700 – £2,000, depending on the exact quantities, quality choices, and complexity of branding.

Marketing and advertising

You’ll want to announce your arrival to attract potential customers.

The average cost of a multi-channel marketing campaign to announce the launch your gym could range from around £7,000 to £72,000 or more, including the set-up cost of a new, responsive website.

Your total will depend on which marketing channels you prioritise, but they could include digital adverting, a content and SEO strategy, and targeted local or regional print and broadcast adverting.

Contingency budget

It’s a good idea to make sure you have a contingency fund in place to cover normal business costs and any unforeseen expenses.

Aim to have enough reserve funds to cover three to six months of operating expenses.

Recurring and ongoing costs

Since the ongoing cost of owning a gym varies so significantly between gym types and sizes, we’ve made a list of potential costs for you to consider in your venture.

Exact figures may be more or less for your operation, but these average gym operating cost categories should be on your mind.

While there are a lot of expenses to keep track of here, these can be easily managed using expense tracking software.

Mortgage or lease payments

Regardless of whether you rent or purchase the property your gym is based in, you’ll have a monthly expense in the form of a mortgage or lease payment.

Costs will vary significantly depending on the factors outlined above and the final cost of the building or loan amount.

Insurance

You’ll need public liability insurance and employers’ liability insurance and professional indemnity cover.

You should also consider buildings or commercial property insurance, as well as contents or specialist equipment insurance.

It’s a good idea to invest in cover for business interruptions as well.

You can expect to pay a minimum of around £1,000 per year for a small gym with four employees, but depending on the cover you need, your insurance could easily cost £1,500-£3,000 or more per year.

Equipment lease payments

If you choose to go the leasing route for your equipment, make sure to budget for those payments.

As a general estimate, you would potentially be looking at around £2,500 per month for a full commercial gym setup, catering to 200 members.

Utilities

A gym uses a lot of electricity, especially if it’s open 24 hours a day. You could easily be looking at around £2,000 per month for utilities.

Equipment repairs and maintenance

Gym equipment takes a beating day in and day out. Make sure you factor in repair and maintenance costs in your budget.

This could cost you anywhere from around £1,000 per year for a smaller gym to £11,000 or more for larger gyms.

Cleaning supplies

Cleanliness and sanitation is a must for a gym. You’ll need mops, vacuums, toilet paper, bleach, wipes, laundry service, etc.

For an average-sized gym, you can you can expect to pay somewhere in the region of £200-£300 per month, based on bulk buying.

HVAC maintenance

This is your heating and air conditioning, and it’s pretty important upkeep for a gym.

Generally, the maintenance cost can range from around £50 to £200 per unit, depending on the type of system you have and the service that’s needed.

Internet and Wi-Fi

Your customers will appreciate free Wi-Fi. The average price of business broadband in the UK is around £40 per month.

POS software

In terms of payment and business management software, solutions typically range from around £20 to £200+ per month.

Employee wages

Employees will earn varying salaries depending on their skills and experience levels.

Make sure you have payroll for the first few months on hand before opening—it may take some time to turn a profit.

Credit card processing fees

Business credit card processing fees typically range from 1.5% to 3.5% of the transaction amount.

Marketing

It’s up to you if you want to make your marketing efforts an ongoing cost.

You’ll have to consider your individual business model and measure the return on investment of different marketing strategies. Most businesses spend 2-5% of their revenue on marketing.

Legal fees and professional fees

This is a fluctuating expense, as it depends on your particular business model and situation.

Just keep in mind that professional services, such as accounting or legal, typically cost around £200 per hour at least.

Common gym startup myths & mistakes

Every gym startup operation is different, saddled with its own unique set of challenges to face.

You’ll have to accept that you’re bound to make some mistakes. Our advice: just make sure to avoid these common missteps.

1. Don’t skip the training and accreditation. As a fitness professional, your clients look to you as an authority, so make sure that’s the truth. Proper training and accreditation is key to the success of your clients’ goals and therefore the success of your gym as a business. You aren’t serving your clients or yourself if you and your staff are not properly trained. Accreditation in niche or specialty fitness markets is also a great way to set your gym apart from competitors.
2. Don’t begin without a client base. If you’re considering opening your own gym or fitness centre, you most likely already have a number of clients. A gym is a tough business to start from scratch, so you really want to make sure you have a sustainable number of devoted clients who will become members. If you don’t have any sure clients at the outset, don’t invest in opening your own gym at this stage—work on building your client base on a smaller scale.
3. Don’t skimp on equipment quality. Across the board, you want to make sure your equipment and facilities are up to snuff—if not for your members, then for your own bottom line. Gyms take a lot of abuse and going cheap on flooring will cost you more in the long run when you have to replace it. Buying used machines may be less expensive at the time, but you’ll sacrifice access to the full manufacturer’s warranty coverage, as well as up-to-date technology to best serve your members.
4. Don’t surprise your neighbours. There’s going to be some noise. Weights will be heavy, music will be pumping, machines will be whirring—even downstairs neighbours of a zen yoga studio will hear some thumping. If your space is connected to, or within earshot of, others you’ll want to be fully upfront about the inevitable noise with your landlord and neighbours. The last thing you want is for your business to have a negative impact on its surrounding area, so make sure you clear this issue early on.
5. Don’t forget about the gym management software. Naturally, you’ll want your gym to operate smoothly and efficiently. A lot goes on behind the scenes with each membership. Sophisticated software to handle check-ins, billing schedules, membership renewals, day-to-day scheduling, and various other administrative tasks may not be cheap, but it’s worth every penny. Remember: automation is your friend.

How to use the gym startup cost worksheet

Our gym startup cost worksheet is easy and intuitive to use. Once downloaded, it’s fully customisable to fit your needs.

The template includes some high and low-end estimates for starting a gym to get the ball rolling.

• Download the free template.
• Add or remove fields applicable to your particular gym startup type.
• Assess your needs and related costs.
• Make a note of costs that might change or costs to be determined.
• Plug in your numbers and enjoy the simplified breakdown of your startup and ongoing costs.

Sage lets you focus on building your business, not tracking expenses

Opening and maintaining a gym requires a lot. Day in and day out you invest your time, energy and focus into creating something amazing.

So why waste your valuable time and efforts tracking expenses the old-fashioned way?

Administrative tasks can now be fully automated—so upgrade your business model with Sage Accounting.

You have enough on your plate and our online accounting software can save you time and money. Outsource the busy work and get back to doing what you do best—making your business a success.

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Is our sample gym startup cost calculator not what you’re looking for? Please check out our other templates. We also offer solutions for all of your startup needs.

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Important information about these gym startup costs

The startup costs shown here by industry are merely guidelines and average estimates based on information pulled from a variety of sources. While we have attempted to present the most accurate information available, please be aware that startup costs can vary greatly according to a number of factors, including but not limited to your location, local fees, and contractor quotes. The information presented here is intended to help guide prospective business owners in the search for information on starting a business within a given industry, but should not be interpreted as an exact quote.

Sage provides the information contained here as a service to the public and is not responsible for, and expressly disclaims all liability for damages of any kind arising out of use of, reference to, or reliance on any information contained on this site. While the information contained on this site is periodically updated, no guarantee is given that the information provided is correct, complete, and up-to-date. Sage is not responsible for the accuracy or content of information contained on this site.