How profitable is owning a gym?

If you are wondering the profitability of owning a gym, you should know that gym profit margins vary depending upon the type of gym, location, age, and many other factors. The average gym profit margin is 10-15%, with franchise gym profits on the lower end of 10%, boutique fitness studios averaging 20% to even 40% profit margins, and CrossFit gym profit margins in the 25-30% range.

Smart Gym Payment Processing & Online Payments Increase Gym Profit Margins

So, is owning a gym profitable? Are gyms profitable businesses? Just how profitable are gyms exactly? Do gyms make money? Yes!

Read on to learn more about average profit for various types of gyms, read our gym owner guide, and check out the best gym management software today.

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Gym Profit Margins by Type of Gym

Here are the average gym profit margins for different types of gyms:

Type of GymAverage Profit MarginSource
Boutique fitness studios20-40%SoulCycle press release (
Traditional gyms10-15%International Health, Racquet & Sportsclub Association (IHRSA) (
Franchise gyms10%FranchiseHelp (
CrossFit boxes27%National Association of Professional Trainers (
Yoga studios20-30%Yoga Alliance (
Pilates studios20-30%Club Industry (
Swimming pool and aquatic centers10-15%National Swimming Pool Foundation (

Are fitness centers profitable? Are franchise gyms profitable? Are CrossFit gyms profitable? They all can be! From the table above you can see that the average boutique fitness studio profit margin is 20-40%, the average traditional gym profit margin is 10-15%, the average franchise gym profit margin is 10% (quite a bit lower than other gyms, but with a more established playbook and higher certainty of financial success), the average CrossFit gym profit margin is 27%, the average yoga studio profit margin is 20-30%, the average Pilates studio profit margin is 20-30%, and the average swimming pool/aquatic center profit margin is 10-15%.

Factors that Influence Gym Profitability

Of course, it is important to note that gym revenue and gym profitability can vary widely from one gym to another. Key factors for gym business profits include the gym owner/operator’s experience level, the type of gym business model, the market/location, the cost structure, pricing strategies and other factors.

Yes, it’s great to increase gym revenue, but as a gym owner (read our gym owner guide to learn more), what you really want to do is to increase your gym’s profits, because that is what’s left over after paying all your expenses, and what ultimately will end up as cash in your bank account. Sure, having average gym revenue is a milestone, but if you want to be a successful gym owner, then you likely want to earn more profit as a gym owner than the typical average gym owner salary of $150,000 per year.

What makes a profitable gym? Experienced gym owners implement a number of key strategies for increasing gym profits.

From upsells and online training memberships:

Upsells & Online Training Memberships Increase Gym Profitability

To smart time-saving fitness automations for member engagement and retention:

Member Engagement Automations Increase Gym Profit Margins

Gym owners use the platform to manage and grow their gym’s profitability every single day. Upsells and automations are just one of many profit-boosting features. From gym check-ins to workout logging and gym payment processing, gyms of all sizes (and profit margins!) can improve their gym profitability with one improvement at a time.

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How to Increase Gym Profitability

There are a number of ways to increase gym profitability.

Jimmy Myers Relentless Sports Performance
If you want to offer an elite service for the end user you need to get with the times and use elite level software that is intuitive, visually appealing, and effective. That is exactly what delivers to its clients.
Jimmy Myers
Owner/Trainer, Relentless Sports Performance

Talk to us about how we can help your gym with software tools to power gym growth. Get a demo now!

What factors contribute to the profitability of a gym?

Profitability is influenced by factors such as membership fees, additional revenue streams, location, target audience, and competition. Efficient management, cost control, and effective marketing strategies can also play a significant role in determining the success of a gym.

Read More: How to Hire Gym Staff and Build an A+ Team

How long does it typically take for a gym to become profitable?

The time it takes for a gym to become profitable can vary widely, but on average, it can take anywhere from 1 to 3 years. Factors such as initial investment, ongoing expenses, and the success of marketing efforts can impact the time it takes to reach profitability.

What are the average profit margins for a gym, and how do they compare to other industries?

The average profit margin for a gym can range from 10% to 30%, depending on factors like size, location, and services offered. This is comparable to or even higher than some other industries, particularly when a gym effectively manages its expenses and optimizes revenue streams.

What strategies can I implement to maximize the profitability of my gym?

To maximize profitability, focus on attracting and retaining members, optimizing membership pricing, and offering additional revenue-generating services such as personal training, group classes, and retail sales. Implement cost-saving measures, maintain efficient operations, and regularly evaluate your marketing strategies to ensure their effectiveness.

How can I increase gym membership sales?

A strong marketing strategy, effective lead generation, offering competitive pricing and promotions, and providing a positive member experience can help increase gym membership sales. Leveraging the features of a comprehensive gym management software like, such as lead tracking and automated follow-ups, can also contribute to driving membership sales.

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How can I optimize gym revenue streams?

Optimizing gym revenue streams involves diversifying offerings beyond memberships, such as personal training sessions, group classes, merchandise sales, and online training programs. Utilizing a gym management software like can help manage and track revenue from different streams, enabling effective financial management and strategic decision-making.

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How can I improve member retention rates?

Member retention is crucial for long-term gym profitability. Building strong relationships with members through personalized experiences, exceptional customer service, offering engaging and varied workout programs, and implementing effective member communication strategies can help improve retention rates. Gym management software, like, can aid in automating member communications, tracking member activity, and providing a personalized experience.

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How can I manage gym expenses effectively?

Managing gym expenses effectively involves identifying areas of cost optimization, such as energy usage, inventory management, and staff scheduling. Utilizing a gym management software with robust reporting and analytics capabilities, like, can help track expenses, analyze financial data, and identify opportunities for cost savings and operational efficiency.

How can I leverage technology to enhance gym profitability?

Leveraging technology is essential for enhancing gym profitability. Implementing a comprehensive gym management software solution like can streamline business operations, automate administrative tasks, improve member engagement, and provide valuable insights through data analytics. By embracing technology and utilizing the right tools, gym owners can drive efficiency, increase revenue, and ultimately enhance profitability.

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How can I effectively track and manage the financial performance of my gym?

Utilize accounting software or hire a professional accountant to monitor your gym’s finances, including revenue, expenses, and cash flow. Regularly review your financial reports to evaluate profitability and make data-driven decisions to optimize your gym’s operations and marketing strategies. Choosing the best accounting software for gyms will also help you streamline financial operations.

What role does member retention play in the profitability of a gym?

Member retention is crucial for gym profitability, as it is generally more cost-effective to retain existing members than to acquire new ones. High member retention rates contribute to a stable revenue stream, allowing for better financial planning and more predictable cash flow.

How are gyms profitable?

Gyms can be profitable through a combination of factors. Solid marketing strategies help attract a steady stream of new members, while good location ensures accessibility and visibility. Providing exceptional customer service fosters loyalty and positive word-of-mouth referrals. Strong processes and efficient operations optimize resources and reduce costs. A robust gym management software solution, like, plays a critical role in streamlining operations, automating tasks, managing memberships, scheduling classes, and tracking progress. This comprehensive tooling allows gyms to focus on delivering an exceptional fitness experience while optimizing revenue streams and maximizing profitability.

Are there any additional revenue streams to consider for increasing gym profitability?

Consider offering ancillary services such as personal training, group fitness classes, workshops, or specialized programs. Expanding into retail sales of fitness apparel, supplements, or equipment can also provide additional revenue. Partnering with local businesses for cross-promotions or hosting events may create further opportunities to boost your gym’s profitability.

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“Working with and their team has been an amazing experience and a dream come true in terms of accomplishing a vision! Their workout technology has helped us effectively engage our community, and I highly recommend to grow your business!”
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Co-Founder, AMPD Golf Performance

If you want to join the many gym owners utilizing the best gym management software to open a gym and then run and grow their gym on the platform, get a demo to see how you can start improving your gym profit margins today.

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