Gym membership pricing calculator: set fees from your costs

Cost-plus takes your cost per member and adds a percentage. A cost of ₹750 with a 60% markup gives ₹1,200. It is simple and it never sells below cost.

Target margin works backwards from the share of the price you want to keep. Margin and markup are not the same number: a 25% margin means price minus cost is a quarter of the price, so ₹750 of cost needs a ₹1,000 price, which is a 33% markup. Mixing the two up is the most common pricing slip, and it usually leaves the gym with less than it planned.

A monthly price is the anchor. Longer plans get a discount in exchange for money up front and a longer commitment. A 12-month plan is attractive to members who already train regularly, and it protects your income against the quiet months. The risk is the other direction: discount too far and the per-month price falls below the cost of serving that member.

The rounding box rounds each plan to a tidy number. Rounding to ₹50 gives prices such as ₹2,650 instead of ₹2,673, which are easier to say, write on a board and remember.

The numbers are only a worked example. Replace them with your own costs.

• Is the per-month price of the longest plan still above your cost per member?
• Does your break-even still work at this price? Check it in the break-even calculator.
• Does the price ladder leave room for a joining offer or festival discount?
• Have you added GST correctly on the bill the member sees?

Prices are only half the story: a gym that keeps members longer needs fewer new joiners. The churn calculator puts a rupee value on that.

Which method should I use, cost-plus or target margin?

Cost-plus is easier to explain to a partner: cost, plus a markup. Target margin answers a different question, namely what share of each rupee you keep. If you think in terms of keeping 30 paise of every rupee, use margin.

How many members should I enter?

Use the number you can realistically serve in a normal month, not your capacity. If you enter a hopeful number, the cost per member comes out low and the price looks cheaper than your real position.

How big should the long-plan discount be?

Big enough to move people to longer plans, small enough that the per-month price stays above your cost per member. The table shows the per-month figure for every plan so you can check that.

Do the prices include GST?

The main price is before GST. The next column adds GST at the rate you set. Confirm the correct rate for memberships with your CA.

Should I match the gym down the road?

Look at it, but price from your own costs first. A competitor's price tells you what members will compare you with, not whether that price covers your rent.