How much does it cost to open a gym?

Two sums that should not be mixed

The opening investment is what you spend once, before the doors open. The monthly cost is what goes out every month, even if nobody shows up. Mix the two and you end up buying equipment with the money that should pay March's rent.

1. Space and fit-out

This is almost always the biggest slice. It splits into three parts, and only the first one appears in the listing.

• Rent, plus whatever the lease asks for up front: deposit and advance rent. Ask for the exact figure before the viewing.
• Fit-out: rubber flooring, changing rooms, toilets, ventilation, sound insulation and lighting.
• Local authority fees for change of use or opening permits, which vary by city.

Get written quotes for the fit-out before you sign the lease. A cheap unit with no changing rooms can cost more than an expensive one where everything is already built.

Negotiate a rent-free period too. A landlord getting a ten-year tenant has reasons to accept two or three months without rent during the works. Every rent-free month stays in your reserve.

2. Equipment

Estimate it from your biggest class, not from a catalogue. Write down the busiest class you will run and what each person uses at the same time. Multiply by the number of spots. Add shared equipment such as rings, ropes and boxes, plus storage.

Good second-hand equipment lowers this line a lot. Barbells, plates and kettlebells last for years. Air rowers and bikes need checking: look at the monitor and the chain before buying.

The equipment list by modality, with what to buy first, is in a separate guide.

A quick way to size this line is a table with three columns: item, quantity per spot, and quantity for the biggest class. Price each line with two quotes, one new and one second-hand. The gap between the two totals tells you how much second-hand could save.

3. People

Coaches start costing money before the first paying member arrives: training, test classes and the launch event. If your country requires a licensed technical lead or head coach and you are not one, that is a wage from day one.

For employees, the salary is only part of the cost. Payroll taxes, mandatory insurance, holiday pay and any statutory bonuses sit on top, and the rules differ by country. Ask your accountant for the full annual cost of each person, not the monthly salary.

4. Permits, licences and affiliation

• Local authority fees for using the building as a gym.
• Professional licences for coaches or technical leads, where your country requires them.
• CrossFit affiliation, if you want the name. The official page lists US$2,500 to US$4,500 a year depending on location, plus a US$1,000 application fee.
• Music licences for playing music in classes. Ask which collecting societies license public performance in your country.
• Business registration, and any consumer complaint procedures your country requires.

5. Insurance

At minimum, get quotes for public liability, which covers injury to members and visitors, and for property and contents. Some countries also make accident insurance for members compulsory. Portugal does, for example.

Ask for at least three quotes, and read what each policy excludes. A policy that excludes Olympic lifting or gymnastics on rings is the wrong policy for a box.

6. Brand and launch

Name, logo, outdoor signage, website, photos and the launch event. It is the easiest category to overspend on, and the hardest to cut at the end. Set a ceiling before you speak to any supplier.

Check whether outdoor signage needs its own permit. In some town centres, an illuminated sign has rules of its own.

7. Software and payments

Gym management software is a monthly cost, usually priced by member tier. Payment methods add a fee per transaction that depends on the method, such as card or direct debit. Add your invoicing or accounting software on top.

8. The cash reserve, the line most often missing

No gym opens at break-even. Between opening day and the month when revenue covers costs, the gap comes out of the reserve. It is the line most often left out, and it decides whether you get through your first quiet season.

Work it out month by month. Write down the fixed cost and the revenue you expect, from your presale members plus a cautious growth rate. The reserve is the sum of the negative differences, plus a margin for the unexpected.

The reserve is the sum of the months until break-even. Without it, one slow month forces rushed decisions.

What gets forgotten

• Sales tax on start-up purchases. It leaves your account the day you pay, and comes back later, if at all.
• The lease deposit, which stays locked for the whole lease.
• A licensed technical lead, where the law requires one and the owner does not qualify.
• Music licences, which apply even when the coach plays a personal playlist.
• Air conditioning or ventilation in summer, which shows up on the energy bill.
• Consumables: chalk, tape, disinfectant, paper, towels.
• Replacing what breaks: skipping ropes, bands, medicine balls.
• The owner's time. If you are leaving another job, your salary is a monthly cost too.

The budget sheet

Questions to ask before you close the budget

Three conversations close almost every line on the sheet. Take the questions in writing, and ask for written answers.

For the landlord

• How much is the deposit, and how many months are paid in advance?
• Will you accept a rent-free period during the works?
• Who pays for works that stay with the building, such as changing rooms and ventilation?
• Has the unit been used as a gym before, or is its permitted use compatible?
• How is the rent reviewed, and when?

For the accountant

• What is the full annual cost of each person I plan to hire?
• Which sales tax rate applies to the memberships I will sell?
• When do I recover the sales tax on start-up purchases?
• Which legal structure makes sense to start with?

For the insurer

• What exactly does the policy exclude, movement by movement?
• How are new members added, and what does each one cost?
• Does liability cover people who are only visiting, such as a member's guest?
• Is outdoor running, for example around the block, covered?

How to lower the investment without lowering quality

• Open with the equipment for your biggest class, and buy the rest as the timetable grows.
• Negotiate a rent-free period during the works.
• Buy second-hand anything without moving parts: barbells, plates, kettlebells, boxes.
• Run a presale before opening. Every founding member shrinks the reserve you need.
• Choose software priced by active members, so the cost grows with revenue.

The presale, step by step, from interest list to first payment, has its own guide.

With Rummo

Rummo's free plan includes timetables, bookings, the waitlist and your gym's public page. Paid plans are priced by active-member tier and add memberships, class packs and online payments. Payments go straight to your own account.

The tiers and what each one includes are on the pricing page. See pricing

The gym page shows the open floor, a studio with limited spots, and plans with different class access. Gym management software