Industry Benchmarks

Fitness

Gyms and fitness studios carry high fixed costs from rent and equipment leases. Membership-based revenue provides recurring income, but churn rates of 30-50% annually make retention critical. Group classes and personal training boost margins.

Key Benchmarks for Fitness

Net Profit Margin

10–20%

After all expenses, taxes, and overhead

Gross Margin

30–40%

Revenue minus cost of goods sold

Labor Cost

~35% of revenue

Total labor as a share of top-line revenue

Overhead

~30% of revenue

Rent, utilities, insurance, admin costs

Break-Even Timeline

~18 months

Average time for a new business to break even

Cost Split

65% fixed / 35% variable

Typical fixed vs variable cost ratio

Recommended Calculators for Fitness

Break-Even Calculator

Find exactly how many units or how much revenue you need to cover all costs.

Cash Flow Forecast

Project your cash position over 12 months with growth and seasonal inputs.

Employee True Cost

See the real cost of an employee beyond base salary – taxes, benefits, overhead.

Markup & Margin Calculator

Understand the difference between markup and margin to set the right price.

What Fitness Business Owners Should Know

Margins matter more than revenue. A fitness business with 20% net margins on $500K revenue is healthier than one with 10% margins on $1M. Use the Markup & Margin calculator to find your sweet spot.

Know your break-even number. Most fitness businesses take ~18 months to break even. The Break-Even calculator shows exactly how many sales you need.

Labor is your biggest lever. At ~35% of revenue, labor costs in fitness are significant. Before hiring, run the Can I Afford to Hire? calculator.