High costs, slow returns: The brutal truths of running a gym in Singapore

Thinking of opening a gym? Don’t expect quick money.

Running a gym in Singapore is not cheap.

When Vulcan Post spoke to Ryan Cheal, Group Chief Operating Officer of Inspire Brands Asia—the exclusive regional master franchisee of Anytime Fitness (AF)—in Jan 2026, he shared that it takes up to US$450,000 to become a franchisee of an AF gym here.

Despite the high startup costs, more gyms have been popping up across the island. As of Oct 15, 2025, Singapore had 505 gyms—a 3.05% increase since 2023. With rising fitness trends like HYROX, it’s no surprise that both individuals and operators are trying to ride the wave.

But hopping on trends doesn’t always guarantee success. The industry has also seen its share of closures, including Ritual, which abruptly shut all four of its Singapore outlets in 2024, and high-profile names like UFC Gym.

These examples show that even well-known brands can struggle to sustain operations in a competitive market. Even with sufficient startup capital, keeping a gym running—attracting members, covering monthly expenses, and managing unexpected costs—requires careful planning and a strong financial runway.

So what does it really cost to open and operate a gym in Singapore?

To find out, we dug into industry data and spoke with two operators: Unstoppable Fitness, a homegrown bodybuilding gym, and Snap Fitness, a US-born fitness chain with 10 outlets in Singapore (and one more at West Mall slated to open in Apr).

Opening doors is just step one

Based on industry estimates online, the startup capital required to open a gym can range between S$150,000 and over S$800,000, depending on size, location, equipment needs, and franchise fees.

Broadly speaking, here’s how it breaks down:

When we spoke to operators at Unstoppable Fitness and Snap Fitness, their startup costs largely lined up with these estimates.

Luke Yeo, 33, founder of Unstoppable Fitness, spent nearly S$400,000 to launch his 3,875 sqft. facility. On the other hand, Snap Fitness master franchisee Noah Oberman shared that it costs around S$600,000 to open a 4,000 sqft gym franchise. “Most gyms we’ve opened are anywhere between S$600,000 and over S$1 million,” he added.

Gym equipment is one of the highest upfront costs for the two businesses, with Unstoppable Fitness spending more than half of its startup capital on machines and weights, while Snap Fitness’ equipment expenses can roughly match the rental deposit.

On top of that, miscellaneous inventory—from water dispensers to towels—can add thousands more, quickly increasing the total initial outlay before a single member walks through the door.

These figures only cover the cost of opening a gym. To sustain and keep it running, owners needs to have additional capital—to market the business, grow membership, and maintain a buffer for unexpected expenses or changing client needs.

For Snap Fitness, monthly operating costs can reach at least S$55,000. Luke, on the other hand, shared that his monthly expenses hit around S$25,300, meaning he would need roughly another S$300,000 in reserves to stay adequately funded for a year.

Luke added that bills continue regardless of early traction or revenue earned, emphasising the need for sufficient runway in the first year.

“Cash burns fast. Without strong reserves, you won’t fail slowly—you’ll shut down quickly,” he said. “Most gyms don’t close because the owner lacks passion or knowledge. They close because they run out of money before they earn trust,” he explained.

“Not the highest ROI business“

Gyms aren’t a quick-profit business. It can take years before you start seeing a real return on your investment.

“As gyms are not the highest ROI business, you are likely to break even only in year 2.5 or more,” said Noah.

When Vulcan Post compared this to other industries, the break-even period for gyms is actually shorter than in sectors like F&B or retail.

However, startup costs are higher for gyms, and the figures we found are based on established franchises such as Anytime Fitness, which benefit from brand recognition and pre-existing systems. Some even claim that AF gyms can break even within six months or even before they open. 

That said, these are outliers. Here’s a closer look at what it takes for different gym models to reach break-even:

Based on its S$24,828 monthly costs and its lowest-tier annual plan (S$119/month), Unstoppable Fitness would need at least 277 members to break even each month.

Snap Fitness will need over 561 members to cover their monthly operating costs. It’s worth noting that more funds are needed to run a franchise gym than an independent gym, hence the difference in the number of members needed to break even. 

No one “owes you a chance”

As newer and smaller players, both Unstoppable Fitness and Snap Fitness have to find a way to stand out in a crowded market against established brands, as they face a higher risk of failure. 

“The real problem? Opening your doors and having no customers at all,” Luke candidly shared. “No one owes you a chance. If you’re new, unknown, and lack social proof, people simply won’t walk in.” 

As such, both operators not only have to spend more on marketing, but also focus their efforts on building strong communities within the brand that can tide them through the high and low seasons, through activities such as supporting members at competitions or celebrating physical transformations. 

Independent gyms like Unstoppable Fitness often reinvest earnings into upgrades in their equipment and amenities. These might sound simple, but they help customers feel more comfortable in the space as they work out. 

“People can leave for cheaper gyms, but they rarely leave a place that feels like home,” added Luke. 

Hard-selling packages no longer work, and long-term, no-refund memberships can leave customers burnt when gyms shut down. Noah also emphasised that gyms need to maintain transparency with their customers, as they are also effective in increasing referrals. 

He added that many health and fitness businesses make the mistake of building around a single trend, so when the hype dies down, the brand goes with it. Building evergreen offerings beyond trends is key to long-term survival, and adjusting them to meet demand adds to their versatility. 

“There’s a fine balance between hopping on trends and diluting the brand by changing too much, versus staying to the core of what the brand is supposed to do and service. But generally, we try to keep an open mind and see what the market really wants and try our best to accommodate that.” 

Only those with strong foundations are likely to survive

Overall, opening a gym remains viable in Singapore, given the strong demand for health and fitness in the country. However, as the market becomes more saturated and competition for the lifestyle dollar intensifies, gyms can’t be seen as a way to get a quick buck. 

Aspiring owners must carefully assess whether they have the financial runway to sustain at least two years, offer competitive prices, and ensure that their services provide enough value for their members to increase loyalty. 

As Singapore’s fitness scene matures, newer players can’t win in scale: they have to differentiate themselves through other means to attract members and at least break even. Nevertheless, Noah and Luke remain optimistic.  

“I would agree that the first mover advantage is definitely real, and some of the longstanding gyms will be very hard to displace. But I do think there’s still plenty of opportunity in the market,” Noah encouraged. 

“We can’t compete with big box gyms on size. We win on service, elite equipment, and culture,” added Luke. 

Featured Image Credit: Unstoppable Fitness/ Snap Fitness