Chartered Financial Analyst specializing in fitness industry finance and operations.
Determine how many members your gym must have each month to cover its total overhead. Enter any three variables—Monthly Fixed Costs, Avg. Membership Fee, Variable Cost per Member, or Breakeven Members—to solve for the fourth.
Gym Breakeven Calculator
Gym Breakeven Formula
The breakeven formula for a gym finds the number of members (Q) it must have for total monthly revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Membership Fee (P):
P = (F / Q) + V
Solve for Variable Cost per Member (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead (e.g., rent, full-time staff salaries, utilities, and equipment leases).
- Avg. Membership Fee (P): Your average monthly revenue per member.
- Variable Cost per Member (V): The direct costs per member (e.g., payment processing, towel service, amenities).
- Breakeven Members (Q): The total number of members needed to reach $0 in monthly profit.
Related Calculators
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What is a Gym Breakeven Point?
A **Gym Breakeven Point** is the number of members a gym must have on its roster each month to cover its total costs. It’s the critical line between losing money and being profitable. For a gym, accurately separating fixed and variable costs is the most important step.
**Fixed Costs (F)** are your monthly operational expenses, or “overhead.” This includes all costs that do not change with the number of members you have, such as rent for the facility, full-time staff salaries (front desk, managers), equipment leases, and utilities.
**Variable Costs (V)** are the costs incurred *specifically because you have a member*. This is often low for gyms but includes credit card processing fees, amenities (e.g., towel service, toiletries), and any franchise fees per-member. The **Contribution Margin** (P – V) is your net profit from one member, which then goes to pay down your fixed costs.
This calculator helps you find the number of members, each contributing this margin, needed to cover your total monthly overhead. Any members signed *after* this breakeven number generate your gym’s net profit.
How to Calculate Gym Breakeven (Example)
Let’s calculate the breakeven point for a new gym.
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Identify Monthly Fixed Costs (F):
The gym has $15,000 in monthly rent, staff, and utilities.
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Identify Avg. Membership Fee (P):
The average member pays a monthly fee of $50.
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Identify Variable Cost (V):
Each member costs $5 in processing fees and amenities.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per member: $50 (P) – $5 (V) = $45.
Next, divide the fixed costs by this margin:
Q = $15,000 / $45 = 333.33 -
Conclusion:
The gym must have 334 members (rounding up) on its books each month to cover all costs and start making a profit.
Frequently Asked Questions (FAQ)
Full-time, salaried staff (managers, front desk) are **Fixed Costs (F)**. A trainer you pay *per class or per client* (as a percentage) is a **Variable Cost (V)**.
Use a weighted average of all your tiers (e.g., (100 ‘Basic’ @ $30 + 50 ‘Premium’ @ $60) / 150 total). Or, simply use your most common tier’s price for a quick estimate.
PT revenue is complex. You could add its *net profit* to (F) as a *negative cost* (cost reduction). A better way is to use (P) as your ‘Average Revenue Per Member’ (ARPM), which includes fees *and* PT, and (V) as your ‘Average Cost Per Member’ (ACPM).
Set your (F) (e.g., $15,000), (V) (e.g., $5), and a target number of members (Q) you can service (e.g., 300). Solve for (P) to find your minimum price: `P = ($15,000 / 300) + $5 = $50 + $5 = $55`. You must charge at least $55 per member.