What Profit Margin Does a Gym Have?
A gym or fitness studio typically achieves a gross margin above 90%, because cost of goods is only about 8% of revenue, covering towels, cleaning supplies, and a small retail line. Revenue Map's gym-studio presets model COGS at 8% across all growth phases, with membership dues of $89 to $99 per month against a 450-slot capacity. The high gross margin is real, but fixed costs of roughly $19,000 to $22,000 per month plus a $200,000 equipment loan determine whether that margin translates to profit.
Gym economics confuse founders because the gross margin is among the highest in Revenue Map's local-business library, yet many studios struggle. The reason is that nearly every dollar of cost sits below the gross margin line: rent, trainers, utilities, insurance, and equipment financing are all fixed. Revenue Map's presets model monthly fixed costs of roughly $18,860 in phase one, rising to about $22,000 at maturity as staff grows from 3 to 4.5 employees. Against that base, gross margin is almost irrelevant to profitability. Occupancy is what matters.
Format shifts the revenue ceiling and the cost base simultaneously. A personal training studio at $320 per month with 90 slots and $130,000 capex plays a completely different game than a full gym at $45 per month with 1,200 slots and $480,000 capex. The gross margin percentage is similar across formats because COGS stays near 8%, but the number of members required to clear fixed costs varies by a factor of five.
Revenue Breakdown
Gym and studio margin ranges by format and cost layer
| Item | Typical range | Notes | Source |
|---|---|---|---|
| COGS (default boutique studio) | 8% of revenue | Towels, cleaning supplies, equipment consumables, and retail across all three phases | Revenue Map model presets |
| Gross margin (after COGS) | About 92% | Inverse of the 8% COGS; consistent across formats because material inputs are minimal | Revenue Map model presets |
| Monthly fixed costs (default studio) | $18,860 to $22,000 | Staff $9,360 to $14,310, rent $5,000 to $5,200, utilities $1,200, insurance $400, admin $500, marketing $1,500 to $2,000 | Revenue Map model presets |
| Monthly debt service (default studio) | About $2,600 | $200,000 loan at 9.5% over 10 years covering equipment, flooring, mirrors, showers, and sound | Revenue Map model presets |
| Membership dues by format | $45 to $320 per month | Full gym $45, boutique $89 to $129, CrossFit $155, yoga $115, personal training $320 | Revenue Map industry presets |
| Build-out cost by format | $130,000 to $480,000 | Personal training $130,000, martial arts $150,000, CrossFit $180,000, yoga $190,000, boutique $260,000, full gym $480,000 | Revenue Map industry presets |
Sources: Revenue Map model presets (default investment, pricing and funnel assumptions in our industry templates), Revenue Map model templates (vertical research in each financial model), Revenue Map benchmark tables (the thresholds behind our free calculators), and honest industry ranges where our own data is thin. Ranges are planning bands, not guarantees.
What Moves the Number
Occupancy is the only margin lever that matters
Revenue Map's presets model occupancy climbing from 45% in phase one to 82% at maturity on a 450-slot capacity. At 45% occupancy and $89 dues, monthly revenue is roughly $18,000, which barely covers the $18,860 of fixed costs before debt service. At 82% occupancy and $99 dues, revenue climbs to about $36,500, leaving roughly $10,000 of monthly profit after all costs. The 92% gross margin is identical in both scenarios; occupancy alone determines profitability.
Staff cost grows with occupancy
Revenue Map's presets ramp staff from 3 employees at $2,600 per month in phase one to 4.5 by phase three, with a 20% payroll tax. That takes the labor line from $9,360 to roughly $14,310. Because trainers are fixed employees rather than gig workers, each hire is a step-function cost increase that arrives before the additional members do. Hiring one trainer too early can erase a month of progress toward break-even.
Format determines the break-even member count
A full gym at $45 per month needs roughly 500 paying members to clear a $22,000 cost base, while a personal training studio at $320 per month needs roughly 70. The percentage margin is nearly identical, but the number of humans who need to walk through the door is five to seven times higher for the low-dues model. Revenue Map's capacity presets reflect this: 1,200 slots for a full gym versus 90 for a personal training studio.
The nine-month ramp eats working capital
Revenue Map's gym-studio presets model a nine-month demand ramp starting at 55% of phase-one occupancy. During this period, collected dues do not cover fixed costs and the studio burns roughly $3,000 to $5,000 per month. The preset $130,000 of owner investment exists to absorb those losses. If the ramp runs longer than nine months because of location, competition, or churn, the studio needs additional capital or a shorter lease commitment.
Frequently Asked Questions
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