BizMetricsHQ

Industry data hub · 2025–2026 · 290+ gym businesses

Gym Industry Benchmarks

Revenue, profit margins, owner salaries, membership economics and valuation multiples for gym businesses.

RevenueProfit MarginOwner SalaryValuation
Revenue$1.2Mmedian annual revenueView Benchmarks →Margin18%median net marginView Benchmarks →Owner Pay$120Kmedian compensationView Benchmarks →Valuation3.5× SDEmedian multipleView Benchmarks →
MRR

median membership MRR (est.)

~$62K/mo

Industry Intelligence

Gym Industry Scorecard

Overall

Solid

  • Profitability
  • Scalability
  • Recurring Revenue
  • Customer Retention
  • Growth Potential

Industry Snapshot

  • Category
    Fitness & Wellness
  • Business Model
    Membership
  • Recurring Revenue
    Very High
  • Capital Requirement
    High
  • Labor Dependence
    Medium
  • Retention Importance
    Very High

Benchmark Your Gym Business

Compare your company against industry quartiles.

Your overall rating

Average
  • RevenueAverage
  • Net MarginAverage
  • Active MembersAverage
  • Recurring RevenueAverage

Source: BizMetricsHQ Composite industry benchmarks (2024–2025 (HFA); 2025–2026 (owner economics)). Methodology

Gym Industry Economics

Membership-driven revenue, retention economics, and why MRR is the core metric for gym operators and buyers.

  • Membership-driven economics

    Gym businesses typically generate recurring monthly revenue through memberships while supplementing income through personal training, group classes, and retail sales.

  • Retention beats acquisition

    Member retention often has a greater impact on profitability than new member acquisition. A 5% improvement in monthly retention can materially change annual profit.

  • MRR is the core metric

    Monthly recurring revenue (MRR) from memberships is the foundation of gym valuation. Operators who track MRR, churn, and revenue per member make better pricing and staffing decisions.

  • Valuation follows recurring quality

    Businesses with strong recurring revenue, low churn, and diversified income streams generally achieve higher valuations than single-revenue-model gyms.

Average Gym Revenue

Annual revenue percentiles for independent gyms and boutique fitness studios.

PercentileRevenue
25th$650K
Median$1.2M
75th$1.8M
Top 10%$2.5M+

Distribution: 25th $650K · Median $1.2M · 75th $1.8M.

Gym Revenue Mix

Where gym revenue typically comes from — membership dues plus personal training, classes, and ancillary sales.

  • Membership Revenue
    62%

    Monthly and annual membership dues — the recurring revenue engine

  • Personal Training
    18%

    1-on-1 and small-group training packages

  • Group Classes
    8%

    Spin, HIIT, yoga, and specialty class fees

  • Retail Sales
    5%

    Supplements, apparel, and accessories

  • Nutrition Programs
    4%

    Meal plans, coaching, and challenge programs

  • Other Revenue
    3%

    Day passes, corporate wellness, and events

Membership Economics

The signature metrics that define gym business health — MRR, churn, and revenue per member.

Signature Section

Membership Metrics

Core membership economics for subscription-based gyms — sourced from HFA industry data where available.

Average Membership Fee
$38/mo

Range: $38 – $69/mo

Median monthly dues for U.S. clubs; mean was $69/mo in 2024.

Source: Health & Fitness Association (HFA), 2024 U.S. club data

Monthly Recurring Revenue
~$62K/mo

Range: $50K – $85K/mo

Estimated membership MRR for a ~$1.2M-revenue independent gym (~62% from dues).

Source: BizMetricsHQ model using HFA dues + revenue-mix benchmarks

Average Member Lifetime
12 – 18 mo

Range: 10 – 24 mo

Typical tenure before cancel; half of new members leave within six months (HFA).

Source: HFA retention research; industry tenure estimates

Member Churn Rate
3 – 5%/mo

Range: 2 – 8%/mo by format

Monthly cancellations; budget gyms trend higher, boutique lower.

Source: HFA 66.4% annual retention (~3.4% implied monthly); industry ranges

Revenue Per Member
~$43/mo

Range: $43 – $65/mo

Membership plus ancillary revenue; independents with PT skew higher.

Source: HFA estimate of $517/member/year

Member economics figures combine publicly reported Health & Fitness Association (HFA) club data with published industry retention and marketing studies. Derived metrics (MRR, LTV) use documented formulas — not single-point estimates from an undisclosed proprietary panel.

Full methodology →

Member Retention Scorecard

Retention quality drives MRR stability and valuation — the metrics buyers scrutinize most.

Member Retention

  • Member Retention
  • Monthly Churn
  • Referral Rate
  • Recurring Revenue

How profitable is a gym business?

What is the average gym profit margin — and how much profit does a gym make?

Are gyms profitable? Yes — healthy operators keep 12 – 24% net profit, median ~18%.

  • Average gym profit margin

    12 – 24% net

    Median ~18%

  • Typical annual profit

    $145K – $290K

    At $1.2M revenue

  • Top-quartile profitability

    25 – 30% net

    Strong operators

  • How profitable is a gym business?

    How profitable is a gym business? Typically 12 – 24% net margin (median ~18%). Top operators reach 25 – 30%.

  • What is the average gym profit margin?

    What is the average gym profit margin? About 18% net; healthy range 12 – 24%. Gross margin usually 60 – 75%.

  • Are gyms profitable?

    Are gyms profitable? Yes, when membership retention and staffing stay in range. Below-range margins usually signal cost drift.

  • How much profit does a gym make?

    How much profit does a gym make? About $145K – $290K a year at median $1.2M revenue (~$216K at 18% net).

Net margin distribution

Poor

6 – 10%

Average

11 – 15%

Good

16 – 20%

Top Performer

21 – 28%

MetricValue
Gross Margin55 – 68%
Net Margin12 – 22%
Owner Salary (normalized)$85K – $160K

Expense Benchmarks

Expense Category% Revenue
Rent & Occupancy18 – 28%
Payroll & Trainers28 – 38%
Equipment & Maintenance6 – 12%
Marketing & Acquisition8 – 14%
Utilities & Insurance5 – 9%
Software & Admin3 – 6%

How Much Do Gym Owners Make?

Owner compensation from solo operator to regional multi-location gym operator.

Owner Operator

Compensation Benchmark

$85K – $110K

Small Gym

Compensation Benchmark

$110K – $140K

Multi-location Gym

Compensation Benchmark

$140K – $220K

Regional Operator

Compensation Benchmark

$220K – $350K+

Gym Business Valuation

SDE, EBITDA, and revenue multiples used to value gym businesses at sale.

SDE Multiple

2.8× – 4.2×

EBITDA Multiple

4.0× – 6.5×

Revenue Multiple

0.6× – 1.1×

Estimate Gym Value

Quick SDE-based valuation using industry multiples.

Estimated Value

$980,000

Range: $784,000 – $1,176,000

At 3.5× SDE on $280,000 SDE

SDE-Based Value

$980,000

Revenue-Based Value

$1,020,000

Example: $1.2M revenue · $280K SDE → ~$980K value at 3.5× SDE

What Top Gyms Do Differently

Practices that separate high-performing gym operators from the median.

Top Performing Gyms Often:

  • Maintain low member churn
  • Upsell personal training
  • Build strong communities
  • Improve referral rates
  • Track member retention closely
  • Diversify revenue streams

Member Economics Dashboard

The unit economics behind gym profitability — membership fee, LTV, CAC, and retention.

Fitness Exclusive

Member Economics

Unit economics behind gym profitability. Ranges reflect format, market, and marketing mix.

  • Average Membership Fee

    $38/mo

    Range: $38 – $69/mo

    Median monthly dues; mean was $69/mo in 2024 across U.S. clubs.

    Source: Health & Fitness Association (HFA), 2024 U.S. club data

  • Revenue Per Member

    ~$43/mo

    Range: $43 – $65/mo

    Total monthly revenue per active member including ancillary sales.

    $517 ÷ 12 months

    Source: HFA industry estimate ($517/member/year)

  • Member Lifetime Value

    $500 – $900

    Range: $400 – $1,200

    Total revenue per member over membership; varies by format and upsell rate.

    Revenue per Member × Average Membership Lifespan (months)

    Source: Derived from HFA revenue/member and published tenure benchmarks

  • Customer Acquisition Cost

    $80 – $200

    Range: $63 – $249+

    Blended sales + marketing spend per new paying member; referrals lowest.

    (Sales + Marketing Spend) ÷ New Paying Members

    Source: Published fitness marketing CAC benchmarks (budget to mid-range clubs)

  • Retention Rate

    66.4%

    Range: 60 – 75% annual

    Share of members retained year-over-year; boutique studios often higher.

    Source: HFA 2025 Fitness Industry Benchmarking Report (U.S. clubs)

Member economics figures combine publicly reported Health & Fitness Association (HFA) club data with published industry retention and marketing studies. Derived metrics (MRR, LTV) use documented formulas — not single-point estimates from an undisclosed proprietary panel.

Primary sources

  • Health & Fitness Association (HFA) — 2025 Fitness Industry Benchmarking Report (66.4% U.S. member retention; 175-operator sample)
  • Health & Fitness Association (HFA) — 2024 U.S. monthly dues ($69 mean, $38 median)
  • HFA industry revenue estimate — ~$517 per member per year

Figures are directional benchmarks, not financial advice. See full methodology →

Industry Outlook

Industry Tailwinds

  • Health awareness growth
  • Corporate wellness programs
  • Hybrid training models
  • Personal training demand
  • Boutique fitness expansion

Industry Challenges

  • High fixed costs
  • Member churn
  • Economic downturns
  • Local competition
  • Equipment replacement costs

Business Quality Dashboard

Quick assessment of typical gym business characteristics — recurring revenue, retention dependency, and exit potential.

Industry Intelligence

Typical Gym Business Industry Scorecard

Overall

Solid

  • Recurring Revenue
  • Revenue Stability
  • Scalability
  • Retention Dependency
  • Exit Potential

Fitness Industry Comparison

Fitness Benchmark Rankings

How gym businesses compare across margin, valuation, recurring revenue, and startup cost.

Fitness Business Economics Dashboard

Compare recurring revenue, startup cost, profit margin, and valuation across major fitness formats.

Fitness Only

Fitness Format Comparison

Star ratings compare relative strength across gym, pilates, yoga, and CrossFit business models.

MetricGymPilatesYogaCrossFit
Recurring Revenue
Startup Cost
Profit Margin
Valuation

Gym Business Calculators

Model revenue, membership growth, member lifetime value, churn, and gym valuation.

Gyms Profitability FAQs

How profitable is a gym business?

Typically 12 – 24% net margin (median ~18%). Top operators reach 25 – 30%.

What is the average gym profit margin?

About 18% net; healthy range 12 – 24%. Gross margin usually 60 – 75%.

Are gyms profitable?

Yes — when membership retention and staffing stay in range. Thin margins usually signal cost drift.

How much profit does a gym make?

About $145K – $290K a year at median $1.2M revenue (~$216K at 18% net).

How profitable is a gym?

Healthy independent gyms typically achieve 12–22% net profit margin, with a median around 18%. Operators with strong personal training penetration, low churn, and efficient staffing can reach 20%+. High rent markets compress margins below 12%.

What is average gym revenue?

The median independent gym generates about $1.2M in annual revenue. The interquartile range spans $650K (25th percentile) to $1.8M (75th percentile), with top-performing multi-location operators exceeding $2.5M.

How much do gym owners make?

Gym owners typically earn $85K–$160K in total compensation, with a median around $120K for owner-operators of established single-location gyms. Multi-location operators with strong MRR and training revenue can exceed $250K.

What is a gym business worth?

Gym businesses typically sell at 2.8×–4.2× SDE, with a median near 3.5×. A gym with $1.2M revenue and $280K SDE might value between $780K and $1.2M. Low churn and high recurring revenue support premium multiples.

How important is member retention?

Member retention is critical — it often matters more than new sales. Improving monthly churn from 5% to 4% can add six figures in annual revenue without additional marketing spend. Buyers heavily weight retention when valuing gym businesses.

What is a good churn rate for a gym?

Industry-wide annual retention is 66.4% per the HFA 2025 Benchmarking Report — roughly one in three members cancels each year. That implies roughly 3–4% monthly churn in a steady-state model. Budget gyms often run 5–8% monthly; boutique and community-driven formats may achieve 2–4%.

How many members does a gym need to be profitable?

Most independent gyms break even between 350–500 active members depending on rent, payroll, and equipment debt. At HFA median dues (~$38/mo) plus training revenue, 800–1,200+ active members typically supports healthy margins for a single-location operator.

Related Fitness Industries

290+ gym businesses · U.S. data · Methodology