Gym Financing: Complete Loan Guide for 2026

The U.S. fitness industry generates over $39 billion in annual revenue, and more than 72 million Americans hold active gym memberships. If you are planning to open a gym, expand an existing fitness center, or purchase new equipment, gym financing is likely the most important decision you will make. The right loan structure can mean the difference between a thriving business and one that struggles under the weight of debt payments.

This guide covers every gym financing option available in 2026, from SBA loans and equipment financing to commercial mortgages and bridge loans. You will learn exactly how much capital you need, which loan products fit your situation, and how lenders evaluate gym and fitness center borrowers. Whether you are opening your first boutique studio or acquiring a franchise location, these strategies will help you secure funding on the best possible terms.

How Much Does It Cost to Open a Gym in 2026?

Opening a gym typically costs between $175,000 and $1.5 million depending on size, location, and business model. A small boutique studio can launch for under $200,000, while a large full-service health club with pool and spa amenities can exceed $2 million in total startup costs.

The biggest cost variables are real estate, equipment, and build-out expenses. Urban locations command higher lease rates but often deliver stronger membership numbers. Rural and suburban markets offer lower overhead but require aggressive marketing to reach membership targets.

Here is what drives the cost differences across gym models:

• Boutique fitness studios (yoga, Pilates, cycling) require minimal square footage (1,500 to 3,000 sq ft) and specialized equipment, keeping total costs in the $100,000 to $250,000 range.
• Budget and express gyms operate in 5,000 to 15,000 sq ft spaces with standardized equipment packages. Expect $200,000 to $500,000 in startup costs.
• Mid-range gyms offer group fitness, personal training, and a full equipment floor in 10,000 to 25,000 sq ft. Costs typically run $400,000 to $1 million.
• Full-service health clubs with amenities like pools, saunas, basketball courts, and childcare require 25,000 to 60,000+ sq ft and $800,000 to $2 million+.
• Franchise locations add $20,000 to $75,000 in initial franchise fees on top of build-out and equipment costs, though they benefit from brand recognition and established operating systems.

Before pursuing financing, get detailed quotes from equipment vendors and contractors. Lenders want to see precise cost breakdowns in your business plan, not rough estimates.

Should You Choose a Franchise or Independent Gym?

The franchise vs. independent decision affects your financing options, startup costs, and long-term profitability. Franchises are generally easier to finance because lenders view proven business models as lower risk, but independent gyms offer higher profit potential once established.

Franchise systems like Planet Fitness, Anytime Fitness, and Orangetheory have well-documented unit economics that make lenders comfortable. SBA loans are particularly accessible for franchise buyers because the SBA maintains a franchise directory of pre-approved brands. If your franchise is on the SBA registry, the underwriting process moves faster and approval rates are higher.

Independent gyms require a stronger business plan to secure the same financing. Lenders will scrutinize your personal experience, market analysis, and financial projections more closely. If you are a first-time gym owner going independent, consider partnering with someone who has fitness industry management experience. Our guide on how to get a commercial loan with no experience covers strategies for first-time borrowers.

The financial trade-off is straightforward: franchise owners pay 5% to 8% of gross revenue in ongoing royalties but benefit from national marketing and operational support. Independent owners keep 100% of revenue but must build everything from scratch.

What Gym Financing Options Are Available?

Gym owners have six primary financing options: SBA loans, equipment financing, commercial mortgages, business lines of credit, bridge loans, and investor capital. Most successful gym launches use a combination of two or three of these products to cover different parts of the startup budget.

SBA 7(a) Loans are the most popular choice for new gym owners. These government-backed loans offer up to $5 million with terms up to 25 years and down payments as low as 10%. The SBA guarantee reduces lender risk, which translates to lower rates and longer terms than conventional commercial loans. Explore our full breakdown of SBA loan programs to see if you qualify.

SBA 504 Loans are ideal if you are purchasing the building that will house your gym. The 504 program finances real estate and major equipment with as little as 10% down, splitting the loan between a bank (50%), a Certified Development Company (40%), and your equity (10%). Read more about SBA loans for commercial real estate to understand the application process.

Equipment Financing allows you to fund treadmills, weight machines, and other equipment with the equipment itself as collateral. Rates range from 6% to 15%, terms run 3 to 7 years, and some lenders offer zero-down programs for borrowers with strong credit. This keeps your cash available for other startup needs.

Commercial Mortgages make sense if you are buying the property. Typical terms include 15% to 30% down, 5 to 25 year terms, and rates between 6.5% and 9.0%. Use our commercial mortgage calculator to model your monthly payments.

Bridge Loans provide fast funding when timing is critical. If you need to close on a property quickly or cover costs while waiting for long-term financing to fund, bridge loans deliver capital in days rather than months. Rates are higher (8.5% to 12%), but the speed and flexibility can save a deal.

Business Lines of Credit give you revolving access to working capital for day-to-day expenses, marketing pushes, and unexpected costs. Rates range from 8% to 24% depending on your credit profile.

How Much Should You Budget for Gym Equipment?

Equipment is typically the single largest line item in a gym startup budget, accounting for 30% to 40% of total costs. A mid-range gym with a full cardio floor, free weight area, and strength machines should budget $150,000 to $350,000 for equipment alone.

Purchasing new commercial-grade equipment from brands like Life Fitness, Precor, Hammer Strength, and Rogue delivers reliability and manufacturer warranties but comes at premium prices. Used and refurbished equipment can cut costs by 30% to 50%, though availability is inconsistent and warranty coverage is limited.

Many gym owners use dedicated equipment financing rather than folding equipment costs into their primary loan. The advantages include preserving your SBA or commercial loan capacity for real estate and build-out, faster approval timelines, and the ability to upgrade equipment at the end of the term without refinancing your entire debt structure.

A smart equipment strategy phases purchases over 6 to 12 months. Start with essential cardio and strength equipment to open your doors, then add specialty items (functional training rigs, turf areas, recovery equipment) as membership revenue grows and cash flow stabilizes.

What Do Lenders Look for in a Gym Loan Application?

Lenders evaluating gym financing applications focus on five core factors: your credit score, business plan quality, collateral, industry experience, and the property's potential to generate revenue. A credit score of 680 or higher opens the door to the best rates, while scores below 650 limit you to higher-cost options.

Your business plan is arguably more important than your credit score for gym loans. Lenders want to see realistic membership projections, detailed competitive analysis, a clear marketing strategy, and conservative financial forecasts. The best business plans include month-by-month projections for the first two years and annual projections for years three through five.

Key metrics lenders evaluate include:

• Debt Service Coverage Ratio (DSCR): Your projected net operating income divided by annual loan payments. Most lenders require 1.20x or higher. Use our DSCR calculator to check your numbers before applying.
• Loan-to-Value (LTV): For property purchases, lenders typically cap LTV at 75% to 85%. SBA loans allow up to 90%.
• Personal Guarantee: Nearly all gym loans require a personal guarantee from owners with 20%+ ownership.
• Cash Reserves: Lenders want to see 6 to 12 months of operating expenses in reserve after closing. Gyms have a ramp-up period, and lenders know month one revenue will not cover full expenses.
• Industry Experience: Prior gym management or ownership experience significantly strengthens your application. If you lack direct experience, highlight transferable skills and consider bringing on an experienced partner or consultant.

To understand commercial loan down payment requirements in more detail, review our dedicated guide that covers every loan type and property scenario.

How Do You Create Financial Projections for a Gym?

Start with your membership pricing model and target member count, then work backward to determine break-even and profitability timelines. Most gyms reach break-even within 18 to 36 months and achieve stabilized profitability by year three.

Here is a framework for building credible gym financial projections:

Revenue Streams to Model:

• Monthly membership dues (70% to 80% of total revenue for most gyms)
• Personal training and group class packages (10% to 20%)
• Retail sales (supplements, apparel, accessories) (2% to 5%)
• Smoothie bar or cafe operations (2% to 5%)
• Childcare fees, locker rentals, and ancillary services (1% to 3%)

Key Expense Categories:

• Rent or mortgage (15% to 25% of gross revenue)
• Payroll and benefits (30% to 40%)
• Equipment lease payments (5% to 10%)
• Utilities (5% to 8%)
• Marketing and advertising (5% to 10%)
• Insurance (2% to 4%)
• Maintenance and repairs (2% to 4%)
• Software and technology (1% to 3%)

Membership Growth Assumptions: A realistic ramp-up projects 50 to 100 new members per month for a mid-range gym during the first year, with growth slowing to 20 to 40 per month by year two as the market matures. Monthly attrition rates of 4% to 6% are industry standard and must be factored into your projections.

Lenders will test your assumptions by comparing them to industry benchmarks. Overly optimistic projections are the number one reason gym loan applications get declined.

What Are the Steps to Finance Your Gym From Start to Finish?

The gym financing process takes 30 to 120 days from initial application to funded loan, depending on the loan type and complexity of your deal. SBA loans typically take 60 to 90 days, while equipment financing can close in as little as two weeks.

Here is what to expect at each stage:

Step 1: Build Your Business Plan (2 to 4 weeks). This is your most important document. Include an executive summary, market analysis, competitive landscape, marketing strategy, management team bios, and detailed financial projections. If you are buying a franchise, include the Franchise Disclosure Document (FDD) and unit-level economics.

Step 2: Determine Total Capital Needed (1 week). Create a detailed sources and uses statement. Add up equipment costs, build-out expenses, lease deposits, working capital needs, and at least 6 months of operating reserves. Add a 10% to 15% contingency buffer for unexpected costs.

Step 3: Choose Your Loan Structure (1 to 2 weeks). Based on your total capital needs and personal financial situation, select the right combination of loan products. A common structure is an SBA 7(a) loan for the bulk of startup costs, supplemented by equipment financing for major machines.

Step 4: Prepare Documentation (1 to 2 weeks). Gather three years of personal tax returns, personal financial statement, business plan with projections, lease agreement or purchase contract, equipment quotes, contractor estimates for build-out, and proof of equity injection (bank statements showing your down payment funds).

Step 5: Apply and Negotiate (2 to 6 weeks). Submit applications to multiple lenders to compare offers. Do not accept the first term sheet. Negotiate on interest rate, origination fees, prepayment penalties, and personal guarantee terms. An experienced commercial lending advisor can help you navigate this process.

Step 6: Close and Fund (1 to 3 weeks). Once you accept a term sheet, the lender completes due diligence, orders appraisals if needed, and prepares closing documents. After signing, funds are disbursed, and you can begin purchasing equipment and building out your space.

Ready to get started? Contact our team for a free consultation on structuring your gym financing package. We work with over 6,000 lenders nationwide and specialize in matching fitness industry borrowers with the right capital solutions.

How Can You Increase Your Chances of Loan Approval?

The single most effective way to boost approval odds is bringing a larger down payment to the table. Moving from 10% down to 20% down can shift your application from borderline to approved, because it reduces the lender's risk and demonstrates your financial commitment to the business.

Beyond the down payment, here are proven strategies for strengthening your gym loan application:

• Build your credit score above 700. Pay down revolving debt and correct any errors on your credit report before applying. Even a 20-point increase can meaningfully improve your rate.
• Secure a strong location first. A signed letter of intent or lease for a high-traffic location with good demographics signals to lenders that your gym has revenue potential.
• Get equipment quotes in writing. Detailed vendor quotes show lenders you have done your homework and know your true costs.
• Demonstrate pre-sales. If you can show 100+ pre-sold memberships before opening, lenders see immediate revenue potential and reduced risk.
• Hire an experienced general manager. If you lack personal gym management experience, hiring someone with a proven track record addresses the lender's experience concern.
• Keep personal finances clean. Avoid large personal purchases, new credit inquiries, or job changes in the 6 months before applying.

For acquisition loans, the existing gym's financial history does much of the heavy lifting. Lenders will evaluate the trailing 12 months of actual revenue and expenses rather than relying solely on projections.

Get a personalized financing assessment from our commercial lending team. We will review your business plan and recommend the optimal loan structure for your gym concept.

What Are the Biggest Risks in Gym Financing?

The biggest financial risk for gym owners is overleveraging during the startup phase. Taking on too much debt before membership revenue stabilizes creates a cash flow crisis that can force closure within the first two years. Industry data shows that roughly 81% of gyms survive past year one, but the failure rate increases significantly for undercapitalized startups.

Other key risks to understand and mitigate:

• Seasonal membership fluctuations. January through March is peak sign-up season, while summer months see higher attrition. Build your cash flow model around these cycles, not peak-month revenue.
• Equipment depreciation. Commercial gym equipment depreciates rapidly. Budget for replacement cycles of 5 to 8 years for cardio machines and 8 to 12 years for strength equipment.
• Lease exposure. Long-term commercial leases (5 to 10 years) are standard for gyms, and breaking a lease due to business failure creates personal liability.
• Competition saturation. Research your 5-mile radius carefully. A market can only support a finite number of gyms per capita, and new competitors can erode membership quickly.
• Rising interest rates. If you choose a variable-rate loan, budget for potential rate increases. Fixed-rate options cost more upfront but provide payment predictability.

The best defense against these risks is conservative financial planning. Underestimate revenue, overestimate expenses, and maintain a cash reserve that covers at least 6 months of debt service and operating costs.

Frequently Asked Questions About Gym Financing?

What credit score do I need to finance a gym? Most SBA and conventional lenders require a minimum credit score of 650, with 680+ preferred for the best rates. Equipment financing companies may approve scores as low as 600, but at higher interest rates. Aim for 700+ to access the widest range of options at competitive terms.

Can I get a gym loan with no money down? True zero-down gym financing is rare for startup locations. SBA loans require 10% to 20% equity injection, and commercial mortgages typically require 15% to 30% down. Equipment financing is the one area where zero-down options exist for borrowers with strong credit (700+). Some franchisors also offer financing programs that reduce upfront capital requirements.

How long does it take to get approved for gym financing? Timelines vary by loan type. Equipment financing can be approved in 3 to 7 business days. SBA 7(a) loans typically take 45 to 90 days from application to funding. Commercial mortgages take 30 to 60 days. Having all documentation ready before applying can shave 2 to 3 weeks off these timelines.

Is it better to lease or buy gym equipment? Leasing preserves capital and allows easier upgrades, but you pay more over time and never own the equipment. Buying costs more upfront but builds equity and eliminates payments once the loan is repaid. For core equipment you will keep long-term (squat racks, benches, dumbbells), buying usually makes more financial sense. For technology-heavy cardio equipment that becomes outdated quickly, leasing offers flexibility.

What is the average ROI for a gym investment? Well-run gyms generate net profit margins of 10% to 18% once stabilized, with total ROI depending on your equity investment and debt structure. A gym generating $600,000 in annual revenue at a 15% net margin produces $90,000 in annual profit. If you invested $200,000 in equity, that represents a 45% cash-on-cash return. However, reaching stabilized operations typically takes 2 to 3 years.

Can I use an SBA loan to buy an existing gym? Yes. SBA 7(a) loans are commonly used for gym acquisitions. The loan can cover the purchase price, equipment upgrades, working capital, and even minor renovations. Buying an existing gym with established cash flow is actually easier to finance than a startup because lenders can underwrite based on actual historical performance rather than projections.

What insurance do I need before lenders will approve my gym loan? Lenders typically require general liability insurance ($1 million to $2 million per occurrence), commercial property insurance covering the full replacement cost of equipment and build-out, workers compensation insurance if you have employees, and professional liability insurance for personal trainers. Budget $3,000 to $8,000 annually for a comprehensive insurance package.

How do I refinance an existing gym loan? If you have been operating for 2+ years with strong financials, refinancing can lower your rate, extend your term, or cash out equity for expansion. Gather your trailing 12 months of financial statements, current loan payoff amount, and updated property appraisal. Submit refinance applications to multiple lenders and compare the total cost of each offer, including any prepayment penalties on your existing loan.

Gym financing does not have to be complicated. With the right business plan, adequate capital, and a clear understanding of your loan options, you can build a fitness business that generates strong returns for years to come. Contact Clear House Lending today to discuss your gym financing needs with an experienced commercial lending advisor.

Sources: IHRSA Global Report (2025), IBISWorld Gym and Fitness Industry Report (2025), SBA Office of Advocacy, National Health Club Association, Franchise Business Review, American Council on Exercise.