Salon, spa & fitness
Gym Membership Revenue Calculator
Works membership revenue, where churn compounds against the base.
Result
Agreements often earn little on the fee alone. They are worth having for the access, the retention and the work members buy without shopping around, so judging them on the fee margin alone undervalues them.
Get a Free Business AuditHow the calculation works
Members times the monthly fee, less the cost of serving them, giving monthly recurring contribution, with churn applied to project the base. Churn compounds, so a base losing a steady share each month requires continuous recruitment simply to stand still.
What moves the number
- Monthly churn rate.
- New joins per month and their seasonality.
- Fee level and mix of membership types.
- Cost to serve a member.
Where this one goes wrong
January joins churn heavily, which means a gym judging its growth from a strong first quarter is reading a seasonal spike as a trend, and the base in June tells the truer story. Measure the retained base rather than cumulative joins. Reducing churn is also worth more than adding members, since each retained member removes the need for a replacement and the effect compounds through every future month.
Before you quote
- Measure the retained base, not cumulative joins.
- Expect heavy churn from seasonal join spikes.
- Track churn reasons, not just the rate.
Questions
About this calculator
Why is January growth misleading?
Because seasonal joins churn heavily, so a gym reading a strong first quarter as a trend is reading a spike. The retained base in June tells the truer story, and measuring that rather than cumulative joins avoids planning on numbers that evaporate.
Why does churn matter more than new members?
Because it compounds. Each retained member removes the need for a replacement and improves every future month, while each new member only fills a gap. A base growing through heavy recruitment against heavy churn is not accumulating.
What causes members to leave?
Not attending, mostly, followed by peak-time crowding and equipment that is broken or unavailable. All three are measurable and addressable, which is why asking departing members is worth more than any projection of future joins.
The formula
recurring revenue = members x annual fee; total profit adds the margin on pull-through work
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How to use this calculator
- Agreements in force. Enter your own figure; the page starts at 180.
- Annual fee ($). Enter your own figure; the page starts at $1,188.
- Cost to deliver one ($). Enter your own figure; the page starts at $540.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 52%.
The result updates as you type, so you can try a figure, see what it does to recurring revenue, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Agreements in force | 180 |
| Annual fee | $1,188 |
| Cost to deliver one | $540 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 52% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $213,840 |
| Profit on the agreements | $116,640 |
| Profit on pull-through work | $17,784 |
| Total gross profit | $134,424 |
| Members still there next year | 137 |
$213,840 of recurring revenue, earning $116,640 on the agreements themselves and $17,784 on the work members bring back. The second number is usually the reason to sell them.
How sensitive the answer is
Holding everything else steady and changing only annual fee, this is what happens to recurring revenue. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual fee ($) | Recurring revenue |
|---|---|
| $594 | $106,920 |
| $891 | $160,380 |
| $1,188 example above | $213,840 |
| $1,782 | $320,760 |
| $2,376 | $427,680 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $1,188.
- Cost to deliver one ($)
- A money amount, starting at $540.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 52%.
What the results tell you
| Result | What it is |
|---|---|
| Recurring revenue | The headline result. A money figure. |
| Profit on the agreements | A money figure. |
| Profit on pull-through work | A money figure. |
| Total gross profit | A money figure. |
| Members still there next year | A number. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.