Services · Recurring revenue

The Gym

A subscription business wearing a fitness costume. The members you keep matter far more than the ones you sign, because roughly half of them quietly stop showing up while their cards keep billing. That gap between sold and used capacity is where the margin lives, and churn is the meter that drains it, usually faster than the front desk can re-sell the spot. Most owners learn the number the hard way, in March, when the January join-up rush cancels all at once.

High capitalManager-run possibleRecurring duesRetention is everything
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$45/mo
Typical membership dues
before add-ons
~5%
Members who quit each month
churn is the business
20 mo
Avg member life at 5% churn
dues × life = LTV
~50%
Members who rarely show up
breakage is the margin

Cited sources Typical bands for this kind of business, compiled from the public sources listed under Sources and method; they are a synthesis, not figures copied from any one source. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A good fit if you

  • Have capital or financing for a space-and-equipment-heavy build
  • Understand that retention and marketing math run the business
  • Can build community and a member experience that keeps people coming
  • Are comfortable with a competitive, churn-driven market

A poor fit if you

  • Are undercapitalized: rent and equipment are unforgiving fixed costs
  • Think signing members is the job (keeping them is)
  • Dislike marketing; you will always be replacing members who quit
  • Want a quiet, low-competition business
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method10 public sources, with the year and a link where the source gives one. The benchmark bands are smbnest's synthesis of these sources, not figures copied from them.

Sources & Method

Figures are compiled from the public sources below; the bands are a synthesis of them, not copies

How these numbers were built: member retention, the median club EBITDA margin and industry growth come from the Health and Fitness Association’s 2025 Fitness Industry Benchmarking Report (175 operators); payroll as a share of revenue comes from the same report as summarized by PushPress, and rent from gym owner surveys collected by GymInsight; owner earnings, sale prices and resale multiples come from BizBuySell’s sold gyms and fitness centers (2021 to 2025); survival rates come from BLS Business Employment Dynamics and financing terms from the SBA. The opening kit is priced from equipment makers and remanufacturers (Core Health and Fitness, Concept2, Fitness Superstore), the Anytime Fitness Item 7 table, and build-out cost guides. The default club (1,500 members at $45 a month, about 6,000 to 8,000 sq ft, a paid manager) is a planning starting point; replace it with a real site’s rent, staffing and member counts the moment you have them. Figures are current as of 2025 to 2026.

Retention and the median EBITDA margin come from the Health and Fitness Association 2025 Fitness Industry Benchmarking Report (175 operators); payroll as a share of revenue comes from the same report as summarized by PushPress, and rent from gym owner surveys (GymInsight); owner earnings and resale multiples come from BizBuySell’s sold gyms and fitness centers (2021 to 2025). ARM and length-of-engagement benchmarks come from Two-Brain Business, an operator consultancy focused on coaching gyms, so treat those as directional for a mid-priced club.

Government data
U.S. Bureau of Labor Statistics · 2024
Business Employment Dynamics: establishment age & survival
https://www.bls.gov/bdm/bdmage.htm
U.S. Small Business Administration · 2026
7(a) loan program
https://www.sba.gov/funding-programs/loans/7a-loans
Industry
Health and Fitness Association (formerly IHRSA) · 2025
Health and Fitness Association Releases 2025 Fitness Industry Benchmarking Report
https://www.healthandfitness.org/health-fitness-association-releases-2025-fitness-industry-benchmarking-report/
Two-Brain Business
The Business Metrics That Every Gym Owner Should Know
https://twobrainbusiness.com/gym-metrics/
Health and Fitness Association, via Recreation Management · 2025
2025 Fitness Industry Benchmarking Report: median EBITDA margin 23.6%, revenue growth 9.9%, two-thirds of members retained
https://recmanagement.com/articles/155432/health-fitness-association-releases-2025-fitness-industry-benchmarking-report
PushPress · 2026
Busy But Broke: payroll 30 to 40% of revenue (HFA 2025), facility costs under 25%, net profit 15 to 25%
https://www.pushpress.com/blog/busy-but-broke-why-high-revenue-gyms-can-still-lose-money
GymInsight · 2025
The profitability squeeze: rent 15 to 25% of revenue, labor 30 to 45%
https://blog.gyminsight.com/15308-the-profitability-squeeze-why-most-gym-owners-still-earn-under-60k-and-how-to-fix-it/
Market & valuation
BizBuySell · 2025
Gym & fitness center valuation benchmarks (sold 2021 to 2025): median sale $210,500, owner earnings about 25% of revenue, 2.55x SDE
https://www.bizbuysell.com/learning-center/valuation-benchmarks/gym-fitness-center/
StartCosts
Gym startup costs: build-out, equipment, deposits and totals by gym size
https://startcosts.com/guides/gym-startup-costs
Regulatory
Sharpsheets
Anytime Fitness franchise initial investment: equipment, technology, signs, design and pre-sale lines
https://sharpsheets.io/blog/anytime-fitness-franchises-costs-profits

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
$99 for your first 3 months

then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

$199 today, then $199 each year until you cancel.

Renews until you cancel. Cancel any time from your account; you keep access to the end of the period you paid for, and your saved plans stay in your account. What membership opens

smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.