What Is the Average Annual Revenue of a Gym After Expenses?

June 8, 2023



    If you're thinking of opening a gym or already own one, you might be wondering what the annual revenue of a gym after expenses is. After all, running a gym involves a range of costs, from equipment and maintenance to rent and wages, and you need to know whether you can make a profit.

    Analyzing the Average Annual Revenue Of Gyms

    Now that we have a basic understanding of the factors that can affect gym revenue, let's take a closer look at the different types of gyms and their average annual revenue.

    Small, Independent Gyms

    Small, independent gyms without franchises or multiple locations may have a harder time generating revenue, but can be more profitable if costs are kept low. These gyms often have a more personal touch and can offer unique services that larger gyms may not be able to.

    However, they may struggle to attract a large customer base. It's important for these gyms to focus on building a strong community and offering exceptional customer service to retain their members.

    The average annual revenue for these gyms can range from $50,000 to $250,000, depending on the location and size of the gym. It's important for these gyms to carefully manage their expenses and find creative ways to increase revenue, such as offering personal training or hosting events.

    Large, Franchise Gyms

    Large, franchise gyms such as Gold's Gym and 24 Hour Fitness can generate higher revenue due to their size, customer base and varying product and service offerings. These gyms often have state-of-the-art equipment, multiple locations and a wide range of classes and amenities.

    They also have the advantage of brand recognition, which can attract a large customer base.

    These gyms can earn between $500,000 to over $5 million in annual revenue, depending on the size and popularity of the franchise. However, with larger revenue comes larger expenses, such as equipment maintenance and staffing costs.

    It's important for these gyms to carefully manage their expenses and stay up-to-date with industry trends to remain competitive.

    Boutique Fitness Studios

    Boutique fitness studios offer a more niche experience and typically specialize in a particular type of workout or training. These studios often have a unique atmosphere and a strong community of members. Popular studios like SoulCycle and Pure Barre have gained a large following and have been able to expand to multiple locations.

    The average revenue for boutique fitness studios can vary greatly depending on the popularity of the studio and the type of services offered. However, on average, these studios generate an annual revenue of $1.5 million to $2 million.

    It's important for these studios to continue offering exceptional service and unique experiences to retain their loyal customer base.

    Strategies for Increasing Gym Revenue

    Regardless of the type of gym, there are several strategies that can be employed to increase revenue.

    Effective Marketing and Promotions

    Marketing campaigns and promotions can help to bring in new customers and keep current members engaged. Offering discounts on membership fees, free trials or classes can help to increase signups. A referral program that rewards customers for bringing in new members can also be effective.

    However, it's important to ensure that marketing efforts are targeted towards the right audience. For example, if the gym is located in an area with a high concentration of young professionals, social media and digital marketing may be the most effective way to reach potential customers.

    Retention and Member Engagement

    Retaining current members and keeping them engaged can be a powerful source of revenue. Providing a high-quality experience, including good facilities, knowledgeable trainers, and top-notch classes and programs can help to build member loyalty and encourage longer-term memberships.

    Offering personalized coaching, virtual scheduling, and community events can also help to keep members engaged and coming back.

    It's also important to listen to member feedback and make changes accordingly. For example, if members are consistently requesting a particular class or piece of equipment, it may be worth investing in to improve their experience.

    Expanding Services and Offerings

    Gyms can also generate new revenue streams by expanding their offerings. For example, adding specialised classes such as yoga or pilates can attract a new demographic of customers.

    Unusual services such as cryotherapy, infrared saunas or even adding a juice bar can all provide customers with more reasons to come back to the gym, and ultimately increase revenue.

    Another option is to partner with local businesses to offer exclusive discounts or promotions to gym members. This can help to build a sense of community and provide additional value to customers.

    Understanding Gym Revenue and Expenses

    Before we can determine the average annual revenue of a gym after expenses, it's important to understand the different sources of gym revenue and typical gym expenses.

    Common Sources of Gym Revenue

    The main sources of gym revenue are membership fees, personal training and group fitness classes, and retail sales of fitness products such as apparel and supplements. Some gyms also generate revenue from corporate partnerships, referral programs, and event rental fees.

    Membership fees are the bread and butter of gym revenue. Depending on the gym, monthly membership fees can range from $10 to $200 or more. Personal training and group fitness classes are also a significant source of revenue for many gyms.

    These services can be offered at an additional cost to the membership fee, or included in a higher-tier membership package.

    Retail sales of fitness products can also provide a boost to gym revenue. Many gyms sell their own branded apparel and supplements, as well as products from other fitness companies. Corporate partnerships can also bring in additional revenue through sponsorships and advertising.

    Event rental fees can be another source of revenue for gyms. Some gyms rent out their space for events such as fitness competitions, seminars, and workshops.

    Typical Gym Expenses and Overhead Costs

    • Rent - typically the largest expense for a gym, ranging from a few thousand to tens of thousands of dollars per month depending on location and size.
    • Utilities - significant expenses for gyms, including electricity and water.
    • Equipment purchases and repairs - major expenses for gyms due to the high cost of fitness equipment and the need for regular maintenance.
    • Staff wages - can be a significant expense, especially if the gym employs a large number of trainers and support staff.
    • Marketing costs - add up quickly for gyms, including advertising campaigns, social media management, and website development.
    • Overhead costs - necessary for any business, including gyms, such as insurance, accounting, and legal fees.

    Factors Affecting Gym Revenue

    There are several factors that can affect the revenue that a gym generates. While location, membership pricing, and offerings are some of the most important factors, there are other elements that can impact a gym's financial success.

    Location and Demographics

    The location of a gym can be a major influencer of revenue. For example, a gym located in a busy city center may have more foot traffic and thus more potential customers.

    However, the location should also be easily accessible to its target market. For instance, a gym that caters to seniors may not be successful if it is located in an area that is difficult for seniors to reach.

    The demographics of the area, such as income levels and age ranges, can also determine the target market and membership pricing. A gym located in an affluent area may be able to charge higher prices for memberships and services, while a gym located in a lower-income area may need to offer more affordable options to attract customers.

    Membership Pricing and Offerings

    The pricing structure of the gym and the types of memberships available can also affect revenue. A gym with more expensive memberships may have a smaller customer base, but generate more revenue per member. On the other hand, a gym with lower membership fees may attract more customers, but generate less revenue per member.

    The range of offerings, such as personal training, group classes or other services can also impact revenue. For example, a gym that offers a variety of group fitness classes may attract customers who are interested in those specific classes, and therefore generate more revenue from those customers.

    Additionally, offering personal training services can be a lucrative source of revenue for gyms, as these services are often priced at a premium.

    Ancillary Services and Products

    Gyms can also generate additional revenue through the sale of ancillary products and services, such as fitness apparel, supplements, and food and beverage offerings. Some clubs even offer spa services or childcare services to their members.

    Offering these additional services can not only generate additional revenue, but also create a sense of community and loyalty among members.

    For example, a gym that offers healthy food and beverage options may attract customers who are interested in maintaining a healthy lifestyle, and who may be more likely to continue their membership long-term.

    Overall, there are many factors that can impact a gym's revenue. By carefully considering location, membership pricing and offerings, and ancillary services and products, gym owners can increase their chances of financial success.


    While there can be a wide range of revenue and expenses for gyms, the potential for profitability is there for those who are savvy about their operations and marketing strategy. By taking different factors into account and employing various strategies to increase revenue, gym owners can maximise their business potential, making it a highly rewarding investment.


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