Gym Break-Even Analysis: $62K Monthly Revenue Target

Fixed costs $56.2K Year 1 base

Contribution margin 90% After variable costs

Break-even revenue $62.4K Monthly target

Break-even timing Month 6 Launch month

Break-even calculator

Test monthly break-even by changing revenue, variable expenses, and fixed monthly costs.

Lean Base Full

Monthly revenue Monthly membership and class revenue sets the margin pool that covers fixed costs. $ Low sales High sales Variable expenses Direct costs that rise with sales eat into each new dollar of revenue. $ Low fees High fees

Money available to cover fixed costs $72,667 $80,741 revenue - $8,074 variable expenses

Margin ratio

90%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the gym has to cover before profit starts. $ Lean costs Heavy costs

Break-even chart Revenue Total costs

Which gym expenses are fixed, and which move with sales?

Cost classification

Your break-even date is Month 6, but that only holds if fixed overhead and sales-driven expenses stay separate. Here’s the quick math view: rent and core payroll set the monthly floor, while fees and member supplies move with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease	Fixed	Include $15,000 per month as base overhead from Month 1 through Month 60.	Treating rent as member-driven instead of a fixed monthly hurdle.
General Manager and Assistant Manager payroll	Fixed	Include $11,667 per month in overhead, based on $140,000 annual salary total.	Excluding salaried leadership from the break-even overhead load.
Front Desk Staff, Salaried Fitness Instructors, and Personal Trainers	Semi-fixed	Start with about $17,917 per month in the first year, then step up as full-time equivalents rise.	Missing staffing jumps as utilization and member volume grow.
Utilities	Semi-variable	Model the $3,500 monthly base, but watch usage pressure as classes, showers, and operating hours scale.	Assuming electricity, water, and gas stay flat at higher traffic.
Insurance, cleaning, software, security, and maintenance	Fixed	Include $5,600 per month as recurring overhead across the planning period.	Burying smaller monthly bills and understating the fixed floor.
Instructor Fees for Premium Classes	Variable	Apply 1.5% of revenue in the first year, declining to 1.2% by Year 5.	Treating premium class delivery as free margin.
Consumables for Member Amenities	Variable	Apply 1.0% of revenue in the first year, declining to 0.7% by Year 5.	Ignoring towels, supplies, and member amenity usage.
Payment Processing Fees	Variable	Apply 2.5% of revenue in the first two years, declining to 2.2% by Year 5.	Forgetting card fees on recurring membership billing.

How does break-even change across lean, base, and full gym formats?

Scenario table

Lean gets you to break-even with tight cost control. Base and full cases add more revenue cushion, but fixed rent and staffing still set the pace.

Planning assumptions only; one-time capex and financing sit outside operating break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean gym	$624k	$62k	$562k	90%	$0	Break-even is just reached, so lease risk is tight.
Base gym	$809k	$81k	$562k	90%	$166k	Cash flow turns positive, with a modest cushion.
Full-service gym	$3.79M	$2.69M	$670k	29%	$2.85M	Strong cushion, but only if high variable costs stay in check.

What breaks the gym’s break-even plan if sales slow or costs rise?

Stress test

Year 1 break-even is about $624,000 of annual revenue. A $10,000 monthly miss, $5,000 more payroll or rent, or lower margin all push the target up fast, and Month 6 is the tight cash point at $286,000 minimum cash.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to the plan.	$624,000	$0 gap	Break-even lands by Month 6.
Revenue shortfall	Monthly revenue runs $10,000 below plan.	$744,000	$120,000 gap	A small top-line miss creates a six-figure gap.
Fixed-cost pressure	Payroll or rent rises by $5,000 per month.	$680,000	$56,000 gap	Overhead growth needs more member revenue fast.
Margin pressure	Contribution margin slips from 90% to 85%.	$661,000	$37,000 gap	Lower margin makes each dollar of revenue work less.
Combined pressure	Revenue is $10,000 below plan, payroll or rent rises $5,000 per month, and contribution margin slips to 85%.	$837,000	$213,000 gap	Stacked misses can erase the Month 6 cushion.

Can this gym hit break-even before you sign the lease?

Founder checklist

Verify member demand, lease load, staffing, and cash before you lock in the build-out. With a 976-member break-even target, about $56.2K of monthly fixed cost, and $605K of capex, the model only works if the funnel and pricing hold from launch.

1Member target976 members

Compare expected active members with the 976 break-even target before you sign the lease; at the first-year price mix, that is about $57.3K in monthly subscription revenue.

2Lease load$56.2K/mo

Check that rent, utilities, insurance, cleaning, software, security, and repairs stay near $56.2K a month, because the $50 join fee will not cover that gap.

3Margin mix90% contribution

In year 1, digital marketing, payment processing, instructor fees, and consumables take about 10% of revenue, so contribution stays near 90% before wages and rent.

4Staffing ramp$32.1K/mo

Phase hiring against the Year 1 payroll run rate of about $32.1K a month, and keep the front desk and instructor plan aligned with actual member flow.

5Cash cushion$605K / $286K

Protect cash for the $605K capex plan and the $286K minimum cash point, since breakeven lands in Month 6 and payback takes 21 months.

6Funnel math30% / 40% / $15

Test that 30% of visitors join a trial, 40% of trials pay, and CAC stays near $15 before you scale the $50K Year 1 marketing budget.