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How Much Does It Cost To Start A New Gym?

By Tracey Heinz

Opening a gym is exciting and very rewarding but before anything, you need to have a budget and the financials set up. In this article, we'll give you a breakdown of all the costs associated with starting your own gym or fitness club.

Sole Ownership or Franchise

Before anything else you need to see whether you want to own your gym or do you want to purchase a franchise. You might want to research this and see which suits you better. Both sole ownership and franchising have their pros and cons, so you need to see which one you prefer more. Buying a franchise will have a large initial purchase cost and possibly monthly costs associated with it. This article does not include franchise costs.

Gym Startup Cost: A Breakdown

There are a few basic costs that are part of any gym startup, mainly space of the facility, equipment, legal and processing fees, insurance, computer systems, miscellaneous gym supplies, advertising and marketing and utilities.

Fitness Gym Layout

Location and space

Let’s say you want to open a studio gym, it could cost you $55,000, while a mid-sized gym will cost you $115,000. So, there is a possibility of spending $60,000 to $1,000,000 on your gym, depending on its size.

Gym Equipment

Equipment costs also depend on the type and amount of equipment you are getting. It can cost you anywhere from $8,000 for a studio to $50,000 for a large gym with all the equipment you could need. While investing in gym equipment make sure you look out for the best quality equipment so that you do not have to keep maintaining it. A one-time investment is much better than repairing the same equipment again and again.

You can check the following articles to gain insight into the type of equipment you might need:

A Complete Boxing Equipment Guide for Your New Boxing Club [Owner's Guide]

The Ultimate Fitness Equipment Checklist for your new Fitness Club

The Ultimate MMA Gym Equipment Checklist [Owner's Guide]

License and permit charges

The license and permit charges vary according to the area you are opening the gym in. You might need to do some research on the business license and permits of your country / state. But you need to get a business license, a trade name registration, and certification showing that your gym is safe for people. You also require legal counsel or an attorney for this purpose. For the certifications, licenses, and permits, you need to allocate a budget of $3000.

Gym Insurance Policy


You need to make sure your gym is ensured in case of any natural disaster such as an earthquake, fire, or flood. As your facility will be entertaining many people, any harm caused by your members to your property will create an issue for you. So making sure that your gym is ensured is necessary. Expect to have $12,000-$15,000 for premiums of your insurance. The higher amount you pay for the insurance premium the better coverage it will provide.

Interior design

Your gym's interior design includes the layout, the theme, the ambience, the flooring etc. You need to allocate some amount for setting up your gym, which includes the layout with the following:

  • Flooring
  • Lighting
  • Mirrors
  • Equipment Placement
  • Couches
  • Chairs
  • Mats
  • Tables
  • Weighing scales

For the interior design, you need to allocate a budget of about $30,000 - $100,000, which includes all of the renovations.

Gym Interior Design

Computer systems

You would require a few systems to manage your gym more effectively. Having a point-of-sale system to accept payments, as well as gym management software will ensure that all operations are running smoothly. The cost of these systems will depend on the hardware you are getting, which can vary from $1,000 to $5,000 initially.

After the initial cost, your gym management software system can cost you about $200 per month.

Equipment maintenance

First and foremost, you need to invest in quality equipment. If you go cheap on your equipment then you need a lot of maintenance to do on it, which will increase your overall costs of running your gym. Just to be on the safe side, you should allocate $1,500 for your maintenance costs.


A gym will obviously require a lot of electricity, especially if you have a large gym that is open 24 hours a day. It will cost you about $5,000 - $6,000 monthly. Running water will also cost you about $70 - $80 per month. Other than electricity and water, you can provide Wi-Fi to your members, the cost of which will vary on the company you are getting your internet connection from.

Advertising and marketing

You need to have a budget set aside for your marketing and advertising ventures. Marketing will include both traditional and online marketing. You should set a budget of $3,000 for your marketing campaigns initially. 

Marketing and Advertising Gym

Some gyms don’t market traditionally, they just rely on online marketing, especially through Instagram and Facebook. They spend their budget on hosting giveaways, membership rewards, and other activities to promote their gym. You can read more on how to set a marketing budget in our previous article, 5 Steps To Setting a Gym Marketing Budget.

Employee Salary

The next cost you need to consider is the salaries you will be paying to your employees. The number of employees you will employ will depend on the size of your facility. You can hire from 3 - 12 employees depending on your need. The salaries will vary according to the employee’s position in your gym. For example, a fitness instructor can earn $40,000, a personal trainer can earn $60,000, and a gym manager can earn up to $70,000 annually.

So, you should have a budget of $600,000 for staff wages annually.

Staff Uniforms

Staff uniforms are not necessary and are totally up to you. If you want to get uniforms for your staff, you should set aside a budget of $800.

Miscellaneous gym supplies

Your gym would need to have some basic supplies such as pens, papers or pads, towels, soaps, and some other necessities as well. So you should keep about $800 for miscellaneous supplies.


Any good gym signage can cost you from $100 to $300 depending on its size and style. Digital signage can be engaging and informational for your members. 


We have now covered the major costs you will have to pay whenever you open your gym. Keeping track of your expenses by creating a Gym Budget Plan is the best way to keep track of where your money is being spent.

To summarize, here are all the costs you will incur initially:

  • Location and space (one-time): $55,000 - $1,000,000
  • Gym equipment (one-time): $8,000 - $50,000
  • License and permit charges (one-time): $3000
  • Insurance (annually): $12,000 - $15,000
  • Interior design (one-time): $30,000 - $100,000
  • Computer systems (one-time): $1,000 - $5,000
  • Computer systems (monthly): $200
  • Equipment maintenance: $1,500
  • Utilities - Electricity (monthly): $5,000 - $6,000
  • Utilities - Water (monthly): $70 - $80
  • Advertising and marketing (one-time): $3,000
  • Staff Wages (annually): $600,000
  • Staff Uniforms (one-time): $800
  • Signage (one-time): $100 - $300 

Tags: Gyms & Clubs

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