Uma Rhodes
@uptimeuma
2026-08-05
I am putting together the opening budget for a 3,000 sq ft commercial gym, and the equipment number keeps bouncing around between $50,000 and $170,000 depending on who I ask. I need a defensible way to set the equipment line before I start talking to suppliers.
Keep equipment under 40% of total startup cash, with a realistic range of 35-50% of total cost depending on build-out. For a $200,000 budget, cap equipment at roughly $80,000 and protect the rest for build-out, deposits, pre-sale marketing, and working capital.
Equipment typically runs 35-50% of total startup cost and should be capped under 40% of total startup cash to protect build-out and working capital.
A viable phase-one package for a 2,500-4,000 sq ft gym costs $50,000-$90,000 factory-direct versus $100,000-$170,000 at major brand retail.
Treadmills and selectorized strength should consume 50-60% of the phase-one equipment budget because they drive the highest utilization per dollar.
Build-out is usually underestimated by 30-40%, so keep a 15-20% contingency that is not carved out of the equipment line.
The first budget question is not “which machines” — it is “what share of total cash should equipment take.” Get that wrong and every downstream decision, from build-out to pre-sale marketing, gets squeezed.
Cap Equipment at 40% of Total Startup Cash
In a real $148,000 commercial gym startup we documented, the split looked like this:
| Line | Share of total | On a $200,000 budget |
|---|---|---|
| Equipment | 35-40%, capped at 40% | $70,000-$80,000 |
| Build-out and construction | ~34% | ~$68,000 |
| Deposits, permits, professional fees, pre-sale marketing, working capital | ~28% | ~$56,000 |
On a $200,000 budget, that is an $80,000 equipment cap. The owner who skipped the contingency in that project had to pull from equipment to finish construction — which is how a capex plan turns into a cheap-machine purchase you did not intend to make.
Price the Phase-One Package First
A viable phase-one package for a 2,500-4,000 sq ft commercial gym runs $50,000-$90,000 factory-direct or $100,000-$170,000 at major brand retail.
Get that number before you talk to suppliers, because it is the number the rest of the budget has to fit around. The full checklist — including what belongs in phase one versus what can wait — is in our gym equipment checklist for new owners and the first purchase thread.
If the package is imported rather than bought domestic, the budget line is the landed cost, not the FOB quote: shipping and import costs covers where freight and duty can approach the value of the goods. And whatever you buy, budget a first-year parts reserve — spare parts availability explains how to size it against the actual machine list.
Concentrate Spend Where Utilization Is Highest
Treadmills and selectorized strength machines should consume 50-60% of the phase-one equipment budget. These categories generate the most usage per dollar and directly support member retention.
An even split across categories is the most common allocation error, and it is expensive in both directions: idle specialty machines on one side of the floor, queues on the other. The full cost breakdown is in Gym Startup Costs Explained, which walks through the real numbers line by line.
Protect the Build-Out Line
Build-out is the most underestimated line in a startup — the documented project ran 40% over its original estimate, with a $38,000 estimate landing at $52,000.
A 15-20% contingency ($22,000-$30,000 on that project) covers the overrun without pulling from equipment. That contingency is not optional, and it should not be carved out of the equipment line: taking it from there just converts a cash problem into a durability problem.
Two adjacent decisions worth settling at the same time: whether to buy or finance the package, and what the insurance line costs, since a financed floor usually requires property coverage as a lender condition.
Model the full picture with the gym startup cost calculator, then set your equipment budget and hold it.
