The Real Numbers
Opening a gym is not cheap. But Texas is one of the best states to do it — no state income tax, a growing population, affordable commercial real estate (compared to coastal states), and a culture that values fitness. Here is what it actually costs.
Startup Cost Breakdown
Lease and Build-Out
- Lease: $3,000-15,000/month depending on city and square footage
- Build-out: $20-50 per square foot for flooring, mirrors, HVAC, lighting
- Security deposit: Typically 2-3 months rent
- Typical total: $30,000-150,000
- Houston: $12-20/sq ft annually
- Dallas-Fort Worth: $14-22/sq ft
- Austin: $18-28/sq ft
- San Antonio: $10-16/sq ft
Equipment
- Budget setup (basic strength + cardio): $30,000-50,000
- Mid-range (brand-name, diverse selection): $75,000-150,000
- Premium (Rogue, Hammer Strength, specialty): $150,000-300,000
Licenses and Permits
- Business license: $50-300
- Occupancy permit: $100-500
- Health department inspection: $100-300
- Music licensing (ASCAP/BMI): $300-800/year
- Total: $1,000-3,000
Insurance
- General liability: $1,000-3,000/year
- Professional liability: $500-1,500/year
- Property insurance: $1,000-3,000/year
- Workers' comp: Varies by employee count
Marketing and Launch
- Website and branding: $2,000-10,000
- Pre-sale marketing: $5,000-15,000
- Grand opening event: $2,000-5,000
- Ongoing monthly marketing: $1,000-3,000
Total Startup Costs by Gym Type
| Type | Size | Total Cost |
|---|---|---|
| Boutique Studio | 1,500-3,000 sq ft | $50,000-100,000 |
| CrossFit Box | 3,000-5,000 sq ft | $80,000-150,000 |
| Standard Gym | 5,000-10,000 sq ft | $150,000-300,000 |
| Full-Service Facility | 10,000+ sq ft | $300,000-500,000+ |
Monthly Operating Costs
Once you are open, expect:
- Rent: $3,000-15,000
- Utilities: $1,000-3,000
- Payroll: $5,000-20,000 (depending on staff size)
- Insurance: $300-600
- Marketing: $1,000-3,000
- Maintenance: $500-1,500
- Software (billing, scheduling): $200-500
- Total: $11,000-43,000/month
Revenue Expectations
- Break-even: Most gyms break even at 200-400 members
- Average membership: $40-80/month in Texas
- Personal training: $50-100/session (additional revenue)
- Profit margin (year 2+): 10-20%