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How much does it cost to open a gym?

Opening your own gym is an ambitious and rewarding venture, but 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, but our worksheet can help you pull the details together.

1 April, 202613 min read Share

Starting a gym in the UK typically requires around £75,000 to £120,000 in upfront costs, although your total could be much lower or much higher depending on your location, the size of your space, and other factors.

If fitness is your passion, turning it into a profitable business starts with understanding those numbers early – that way you can plan for the obvious costs as well as those that are easier to overlook.

This worksheet and companion guide aim to help you with that planning.

Together, they’ll help you map out the real cost of setting up a gym, from one-time startup expenses like property, fit-out, equipment, licences, and launch marketing to ongoing costs such as utilities, staffing, and software.

Here’s what we’ll cover:

How much does it cost to start a gym?

Starting a gym typically requires £75,000 to £120,000 in upfront costs, though this varies widely based on the gym’s size and location and whether you rent or build.

To nail down more precise figures for your business plan, you’ll need to consider what kind of gym you have in mind and where you want to open it. A modest studio in a small town will cost significantly less to get off the ground than a mid-sized or large gym in an affluent suburb or urban area.

You should also think about whether you want to build or rent a space and whether you prefer to start your own business from scratch or open a franchise location of an existing gym. These factors will also influence the cost to open your gym.

How much does it cost to build a gym from the ground up?

Your costs to build a gym could range from hundreds of thousands to several million pounds, depending on the square footage and location.

How much does it cost to open a franchise gym location?

An initial franchise investment can start as low as £19,950, but for a higher-end establishment, the cost could rise to between £1.7 million and £3.8 million. Franchising offers a more structured path to ownership, but the financial range is wide. The gap between those figures largely comes down to brand recognition, territory size, and the level of fit-out and equipment the franchisor requires.

What are the one-time costs of launching a gym?

Upfront costs to open a gym include the physical space, equipment, legal permissions and requirements, and marketing expenses.

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 to add to your budget worksheet.

Physical location

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

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

The specifics will depend on the location of your space and its size. Think carefully about how much space you’ll need. 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.

Gym equipment

As a rough estimate, you’ll likely need to spend around £40,000 to buy equipment for 20 members. But this cost can vary widely depending on the amount and type of equipment you want.

Be sure to shop around, and keep in mind that you can often get a discount if you purchase 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; the fee for registering a limited company online is £100.

You might need a variety of 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 to £200 per handheld card reader and anywhere from £250 to more than £1,000 for a countertop terminal or full till system.

Signage

As a rough average, you should count on spending between £450 and £3,000 for a 1-by-5-meter shop sign that’s suitable for external use. This cost will vary based on your specifications, like size, design, and materials used.

Employee uniforms

Simple workout clothes and company logo shirts are typically the norm for gym workers’ uniforms. 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 to £80 per staff member might be a realistic ballpark cost.

But this is another cost that is entirely up to you. It could be less or significantly more, depending on your uniform requirements.

Merchandise

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

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 to £2,000, depending on the exact quantities, quality choices, and complexity of branding.

Marketing and advertising

The average cost of a multi-channel marketing campaign to announce the launch of 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 advertising, a content and SEO strategy, and targeted local or regional print and broadcast advertising.

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.

What recurring and ongoing costs can I expect?

Recurring costs for a gym can include rent or mortgage payments, utilities, insurance, equipment costs, employee wages, credit card processing fees, and marketing costs.

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

The main insurance costs for this kind of business are:

• Public liability insurance – covers you if a client is injured or their property is damaged because of your business.

• Employers’ liability insurance – covers your business if an employee is injured or becomes ill because of their work.

• Professional indemnity cover – covers you if a client claims your advice or services caused them financial loss or harm.

• Commercial property insurance – covers the building itself, and can be paired with contents or specialist equipment insurance to protect the equipment and other valuable items inside.

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 to insure a small gym with four employees, but depending on the cover you need, your insurance could easily cost £1,500 to £3,000 or more per year.

Equipment lease payments

If you choose to go the leasing route for your equipment, you could 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. UK gyms can expect to spend anywhere between £1,500 and £12,000 per month on energy.

Equipment repairs and maintenance

Gym equipment takes a beating day in and day out. Repair and maintenance costs could be anywhere from around £1,000 per year for a smaller gym to £11,000 or more for larger gyms.

Cleaning supplies

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

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

HVAC maintenance

Generally, maintenance for your Heating, Ventilation, and Air Conditioning (HVAC) systems 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. Basic business broadband packages now range from £28/month to £55/month, depending on the type of connectivity you choose.

POS software

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

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.

How to avoid common gym startup mistakes

Every gym startup operation has its own unique set of challenges to face. You’re bound to make some mistakes, but you can avoid some of the most common pitfalls by following our advice.

1. Don’t skip the training and accreditation. The latter being official proof that you or your staff have completed the right training or meet industry standards. 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 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 gym management software. Naturally, you’ll want your gym to operate smoothly and efficiently, and 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.

Gym startup costs: Industry tip

Running a business is hard work. Don’t burn yourself out tracking expenses—consider upgrading to online accounting software with Sage Accounting to save time and money.

How to use a 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.

“With Sage Accounting, you don’t have to worry about anything. The beauty of automation is that we can focus on what makes the business tick.”

Dan Shardlow Owner, Sky Spa Wellness health and fitness centre

Additional startup cost templates

If our sample gym startup cost calculator isn’t 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.

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