How much does it cost to open a day spa?

A day spa typically costs $100,000 to $350,000 to open, with the wide range driven by location, number of treatment rooms, and level of build-out. A small 2-3 room spa in a suburban strip mall can open for $80,000-$120,000, while a luxury urban spa with wet rooms and saunas can exceed $300,000.

How many treatment rooms does a new spa need?

Most new spas start with 3-5 treatment rooms to balance capacity with overhead costs. Each room costs $5,000-$15,000 to equip and build out. You want enough rooms to keep therapists busy during peak hours without paying for unused space during slow periods.

Is owning a spa profitable?

Spas can be profitable with net margins of 10-18% once established. The average day spa generates $300,000-$800,000 in annual revenue. Profitability depends heavily on keeping therapist utilization above 60% and selling retail products, which carry 40-50% margins.

Spa Startup Cost Comparison

Knoxville, TN vs Chicago, IL

Knoxville, TN

$74,000 - $280,000

COL Index: 88.2

Chicago, IL

$99,000 - $376,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Knoxville, TN	Chicago, IL	Difference
Business Registration & Licenses	$1,100 - $5,000	$5,600 - $10,900	-63%
Commercial Lease (First + Last + Security)	$6,300 - $31,300	$17,600 - $88,000	-64%
Spa Equipment & Furnishings	$20,000 - $80,000	$20,000 - $80,000	Same
Initial Product & Supplies Inventory	$5,000 - $20,000	$5,000 - $20,000	Same
Interior Build-Out & Ambiance Design	$22,000 - $79,200	$28,800 - $103,500	-24%
Business Insurance (Annual)	$3,000 - $8,000	$3,000 - $8,000	Same
Marketing & Launch	$3,000 - $12,000	$3,000 - $12,000	Same
Working Capital (3 Months)	$13,200 - $44,100	$16,200 - $53,900	-18%
Total Estimated Cost	$74,000 - $280,000	$99,000 - $376,000	-25%

Local Market Factors

Factor	Knoxville	Chicago
Cost of Living Index	88.2	107.8
Commercial Rent ($/sqft/yr)	$10 - $22	$25 - $65
Labor Rate Index	0.88	1.15
Sales Tax	9.25%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$300	$150

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