This article was written by our expert who is surveying the industry and constantly updating the business plan for a wellness spa.
Starting a wellness spa requires careful financial planning to ensure long-term success.
Understanding monthly expenses is crucial for maintaining profitability and making informed business decisions in the competitive spa industry.
If you want to dig deeper and learn more, you can download our business plan for a wellness spa. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our wellness spa financial forecast.
A typical wellness spa's monthly operating expenses range from $42,000 to $157,000+ depending on location, size, and service offerings.
The largest expense categories are staff salaries (30-35% of total costs) and rent/lease payments (15-25% of total costs), which together represent approximately half of all monthly expenses.
| Expense Category | Monthly Range (USD) | Percentage of Total Costs |
|---|---|---|
| Staff Salaries (all positions) | $30,000 – $100,000 | 30-35% |
| Rent/Lease | $5,000 – $20,000 | 15-25% |
| Professional Supplies & Laundry | $2,000 – $10,000 | 8-12% |
| Marketing & Advertising | $1,000 – $15,000 | 5-15% |
| Accounting, Legal, Admin Fees | $1,000 – $5,000 | 3-8% |
| Training & Certifications | $500 – $2,000 | 2-5% |
| Utilities (electricity, water, gas) | $500 – $2,000 | 2-4% |
| Maintenance & Repairs | $200 – $5,000 | 1-6% |
| Software & POS Subscriptions | $23 – $455 | 0.5-2% |
| Insurance (all types) | $42 – $240+ | 0.5-1% |
What is the complete monthly breakdown of a spa business's expenses, with average budget ranges in USD for each category?
A wellness spa's monthly expenses typically range from $42,000 to $157,000+ depending on location, size, and service offerings.
The largest expense categories for spa businesses are staff salaries, which can account for 30-35% of total monthly costs, and rent or lease payments, representing 15-25% of expenses. Professional supplies and laundry services typically consume 8-12% of the monthly budget, while marketing and advertising can vary significantly from 5-15% depending on competition levels in your area.
Smaller but essential expense categories include accounting and legal fees (3-8%), staff training and certifications (2-5%), utilities (2-4%), and equipment maintenance (1-6%). Technology costs like software subscriptions typically represent 0.5-2% of monthly expenses, while insurance costs are usually under 1% of total monthly expenses.
These percentages provide a framework for budgeting, but actual amounts will vary based on your spa's specific location, target market, and service offerings.
How much is typically spent on rent or lease for the premises each month?
Monthly rent or lease costs for spa businesses range from $5,000 to $20,000, with location being the primary determining factor.
Prime locations in major metropolitan areas like New York City, Los Angeles, or San Francisco command the highest rents, often reaching the upper end of this range or beyond. These high-traffic areas offer greater visibility and potential clientele but come with significantly higher overhead costs.
Suburban locations and smaller cities typically fall in the $5,000-$12,000 range, offering a balance between accessibility and affordability. Rural or less densely populated areas may have even lower rental costs, sometimes below $5,000 per month.
The size of your spa facility directly impacts rental costs, with larger spaces requiring more square footage for treatment rooms, reception areas, relaxation spaces, and storage. Most successful spas allocate 15-25% of their total monthly budget to rent or lease payments.
What are the monthly salary costs for staff, including therapists, front desk, cleaners, and management?
Staff salaries represent the largest expense category for wellness spas, typically ranging from $30,000 to $100,000 per month for a mid-sized establishment.
| Position | Monthly Salary Range | Number of Staff | Total Monthly Cost |
|---|---|---|---|
| Licensed Massage Therapists | $3,500 - $6,000 | 4-8 therapists | $14,000 - $48,000 |
| Spa Manager | $4,500 - $8,000 | 1 manager | $4,500 - $8,000 |
| Front Desk Staff | $2,200 - $3,500 | 2-3 staff | $4,400 - $10,500 |
| Aestheticians | $3,000 - $5,500 | 2-4 staff | $6,000 - $22,000 |
| Cleaning Staff | $2,000 - $3,000 | 1-2 staff | $2,000 - $6,000 |
| Assistant Manager | $3,000 - $5,000 | 0-1 staff | $0 - $5,000 |
| Marketing Coordinator | $2,800 - $4,500 | 0-1 staff | $0 - $4,500 |
You'll find detailed market insights in our wellness spa business plan, updated every quarter.
How much do utilities like electricity, water, and gas usually cost per month?
Monthly utility costs for wellness spas typically range from $500 to $2,000, depending on facility size and equipment usage.
Electricity represents the largest portion of utility expenses, particularly for spas with hot tubs, saunas, steam rooms, and extensive lighting systems. These amenities can consume significant energy, with hot tubs alone adding $150-$400 monthly to electricity bills. Heating and cooling systems for maintaining comfortable temperatures in treatment rooms also contribute substantially to electricity costs.
Water usage in spas is considerably higher than typical businesses due to laundry services, hot tubs, steam rooms, and frequent cleaning requirements. Monthly water bills typically range from $200-$600 depending on local rates and usage patterns.
Gas costs vary by region and season, primarily used for heating water and maintaining comfortable temperatures. Northern climates or spas with extensive hot water needs may see gas bills of $100-$500 monthly.
Energy-efficient equipment and proper insulation can significantly reduce these costs over time.
What are the average monthly costs for professional supplies such as massage oils, skincare products, towels, and laundry services?
Professional supplies and laundry services typically cost wellness spas between $2,000 and $10,000 monthly, representing a significant operational expense.
Massage oils and lotions are essential consumables that cost approximately $300-$800 per month depending on client volume and product quality. High-end spas using premium organic or specialized products may spend significantly more. Skincare products for facials and treatments can range from $500-$2,000 monthly, with luxury brands commanding higher prices.
Towels, robes, and linens require substantial investment both in initial purchase and ongoing replacement. A typical spa needs 200-400 towels in rotation, with replacement costs of $200-$500 monthly due to wear and frequent washing.
Laundry services represent a major ongoing expense, typically costing $0.75-$1.50 per pound of linens. Most spas generate 1,000-3,000 pounds of laundry monthly, resulting in costs of $750-$4,500. Some spas choose in-house laundry facilities to reduce long-term costs but require initial equipment investment and additional utility expenses.
How much is allocated monthly to marketing and advertising, both online and offline?
Marketing and advertising budgets for wellness spas range from $1,000 to $15,000+ monthly, varying significantly based on market competition and business goals.
Digital marketing typically consumes 60-70% of advertising budgets, including Google Ads ($300-$2,000 monthly), Facebook and Instagram advertising ($200-$1,500 monthly), and search engine optimization services ($500-$2,000 monthly). Social media management and content creation can add another $300-$1,000 monthly.
Traditional marketing methods still play important roles in spa marketing. Print advertisements in local magazines and wellness publications cost $200-$1,000 monthly, while direct mail campaigns can range from $500-$2,000 monthly depending on target audience size.
Spas in highly competitive markets like major metropolitan areas often allocate 10-15% of gross revenue to marketing, while those in less competitive areas may spend only 5-8%. New spa businesses typically invest more heavily in marketing during their first year to build brand awareness and attract initial clientele.
This is one of the strategies explained in our wellness spa business plan.
What is the cost of business insurance per month, including liability, property, and workers' compensation?
Business insurance costs for wellness spas range from $42 to $240+ monthly, depending on coverage types and business size.
General liability insurance, essential for protecting against client injury claims, typically costs $42-$62 monthly for basic coverage. This insurance covers incidents like slips, falls, or allergic reactions to spa products. Professional liability insurance, covering treatment-related claims, adds another $30-$50 monthly.
Property insurance protects expensive spa equipment, furniture, and inventory, costing approximately $50-$100 monthly depending on facility value and location. Spas with high-end equipment like advanced laser devices or premium furniture may pay higher premiums.
Workers' compensation insurance is mandatory in most states and costs vary based on employee count and injury risk. Spa businesses typically pay $80-$150 monthly for workers' compensation coverage for a small to medium-sized team.
Comprehensive coverage including all necessary insurance types typically totals $200-$300+ monthly for established spa businesses with multiple employees and extensive equipment.
How much is spent each month on software subscriptions and POS systems used for bookings, inventory, and customer management?
Software subscriptions and POS systems for wellness spas cost between $23 and $455 monthly, depending on features and business size.
Basic booking and scheduling software starts around $23-$50 monthly for single-location spas with limited features. Mid-range solutions offering customer management, inventory tracking, and basic reporting typically cost $100-$200 monthly.
Comprehensive spa management platforms with advanced features like automated marketing, detailed analytics, staff management, and multi-location support can cost $200-$455 monthly. These premium systems often include POS functionality, reducing the need for separate payment processing systems.
Point-of-sale systems specifically designed for spas typically add $30-$100 monthly in subscription fees, plus transaction processing fees of 2.6-3.5% per payment. Some spa management software includes integrated payment processing, potentially reducing overall costs.
Additional software costs may include accounting software ($15-$50 monthly), email marketing platforms ($20-$100 monthly), and specialized apps for specific treatments or services.
What are the average monthly maintenance and repair costs for spa equipment and facilities?
Maintenance and repair costs for wellness spa equipment and facilities range from $200 to $5,000 monthly, depending on equipment age and complexity.
Routine maintenance represents the majority of these costs, including HVAC system servicing ($100-$300 monthly), hot tub and pool maintenance ($150-$500 monthly), and general facility upkeep ($100-$400 monthly). Regular maintenance prevents costly emergency repairs and extends equipment lifespan.
Spa equipment like massage tables, facial steamers, and treatment devices require periodic servicing and calibration, typically costing $200-$800 monthly across all equipment. High-tech devices like laser equipment or advanced facial machines may require specialized technician visits costing $100-$500 per service call.
Unexpected repairs can significantly impact monthly budgets, making it essential to maintain emergency repair funds. Common emergency repairs include HVAC failures ($500-$2,000), plumbing issues ($200-$1,000), and equipment breakdowns ($300-$1,500).
Preventive maintenance contracts can help stabilize costs and reduce emergency repair frequency, typically costing 10-15% more than basic maintenance but providing significant long-term savings.
How much is budgeted monthly for training, certifications, or continued education for staff?
Training and certification costs for wellness spa staff typically range from $500 to $2,000 monthly, representing a crucial investment in service quality and compliance.
Ongoing certification maintenance for licensed massage therapists costs approximately $50-$150 per therapist monthly, including continuing education credits required by state licensing boards. Aestheticians face similar requirements, typically costing $40-$120 monthly per staff member.
Specialized training for new treatments or techniques represents additional investment, with costs ranging from $200-$800 per training session. Popular treatments like hot stone massage, aromatherapy, or advanced facial techniques require specialized certification that can cost $300-$1,200 per staff member.
Safety and compliance training, including CPR certification, first aid, and health department requirements, typically costs $100-$300 monthly across all staff members. Management training for supervisory staff can add another $200-$500 monthly.
We cover this exact topic in the wellness spa business plan.
What are the monthly accounting, legal, or administrative service fees typically involved in running the business?
Accounting, legal, and administrative service fees for wellness spas typically range from $1,000 to $5,000 monthly, covering essential business support functions.
Professional bookkeeping and accounting services represent the largest portion of these costs, typically ranging from $500-$2,000 monthly depending on business complexity and transaction volume. This includes monthly financial statement preparation, tax preparation assistance, and payroll processing.
Legal services for contract review, regulatory compliance, and employment matters typically cost $200-$1,000 monthly on retainer or as-needed basis. Spas offering medical treatments or employing healthcare professionals may require additional legal oversight, increasing costs to $500-$1,500 monthly.
Business licensing and regulatory compliance fees vary by location but typically cost $100-$500 monthly. This includes health department permits, business licenses, and professional licensing fees for staff members.
Administrative services like payroll processing, HR support, and business consulting can add $300-$1,000 monthly, depending on services utilized and business size.
How much is usually set aside each month for taxes or estimated tax payments (local, state, federal)?
Tax obligations for wellness spas vary significantly based on revenue, profit margins, and jurisdiction, but most businesses set aside 15-35% of profits for tax payments.
Federal income tax rates for spa businesses organized as corporations range from 15-35% depending on profit levels. S-corporations and LLCs pass tax obligations to owners, who pay individual income tax rates that can reach 37% for high earners.
State income taxes vary dramatically by location, ranging from 0% in states like Texas and Florida to over 10% in high-tax states like California and New York. Local taxes and business licenses can add another 1-5% depending on municipality.
Payroll taxes represent significant ongoing obligations, including Social Security (6.2%), Medicare (1.45%), federal unemployment tax (0.6%), and state unemployment taxes (typically 1-5%). These taxes apply to all employee wages and represent substantial monthly obligations for spas with large staff.
Sales tax obligations depend on state regulations and services offered. Some states exempt certain spa services from sales tax, while others apply standard rates of 4-10% to all services. Professional tax advice is essential for accurate tax planning and compliance.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Understanding these monthly expenses is crucial for maintaining a profitable wellness spa business and making informed financial decisions.
Careful budgeting and expense monitoring will help ensure your spa's long-term success and sustainability in the competitive wellness industry.
Sources
- Finmodelslab - Spa Operating Costs
- SalonRenter - Average Salon Suite Rental Costs
- Salon Suites - Rental Prices
- ZipRecruiter - Spa Attendant Salary
- Dojo Business - Wellness Spa Monthly Upkeep Costs
- ABIC - Calculating Treatment Costs
- Patient Gain - Med Spa Advertising Spend
- Insureon - Day Spa Insurance Cost
- Insure Bodywork - Salon Spa Insurance Cost
- The Salon Business - Insurance Cost