How much does it cost to open a small gym?

A small boutique gym (3,000-4,000 sq ft) typically costs $50,000 to $150,000 to open, including lease deposits, equipment, build-out, and marketing. A full-scale commercial gym with extensive equipment can exceed $500,000. Buying used equipment can save 40-60% on the largest line item.

What is the most expensive part of opening a gym?

Fitness equipment is the single largest expense, ranging from $30,000 for a basic setup to $150,000 or more for a comprehensive mix of cardio and strength machines. The commercial lease deposit is typically the second largest cost, especially in high-traffic locations.

How many members does a gym need to be profitable?

Most small gyms need 200-400 active members to cover expenses and generate profit, depending on membership pricing and overhead. At an average rate of $40-$60 per month per member, a gym with 300 members generates $12,000-$18,000 in monthly membership revenue.

Gym Startup Cost Comparison

Ann Arbor, MI vs Los Angeles, CA

Ann Arbor, MI

$86,000 - $426,000

COL Index: 108

Los Angeles, CA

$117,000 - $587,000

COL Index: 166.5

Detailed Cost Comparison

Expense	Ann Arbor, MI	Los Angeles, CA	Difference
Business Registration & Licenses	$900 - $4,600	$4,000 - $14,400	-70%
Commercial Lease (First + Last + Security)	$14,600 - $87,700	$30,000 - $180,000	-51%
Fitness Equipment	$30,000 - $150,000	$30,000 - $150,000	Same
Interior Build-Out & Renovation	$15,800 - $84,000	$20,300 - $108,000	-22%
Business Insurance (Annual)	$3,000 - $10,000	$3,000 - $10,000	Same
Technology & Software	$2,000 - $10,000	$2,000 - $10,000	Same
Marketing & Pre-Sale Campaign	$3,000 - $15,000	$3,000 - $15,000	Same
Working Capital (3 Months)	$16,200 - $64,800	$25,000 - $99,900	-35%
Total Estimated Cost	$86,000 - $426,000	$117,000 - $587,000	-27%

Local Market Factors

Factor	Ann Arbor	Los Angeles
Cost of Living Index	108	166.5
Commercial Rent ($/sqft/yr)	$18 - $38	$30 - $85
Labor Rate Index	1.05	1.35
Sales Tax	6%	9.5%
Minimum Wage	$10.33/hr	$16.78/hr
LLC Filing Fee	$50	$70

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