How much does it cost to start a med spa?
A med spa is a hybrid medical and aesthetic facility that offers cosmetic procedures under physician supervision.
Quick answer
Starting a med spa typically costs $250,000 to $750,000 in initial capital, including buildout, equipment, working capital, and licensing, with most owners spending $400,000 to $600,000.
The detail
Med spa startup costs break down across five buckets. Buildout and lease deposits run $80,000 to $200,000 for a 1,500 to 3,000 square foot space depending on market. Capital equipment is the largest line: a single laser platform runs $90,000 to $180,000, IPL devices run $40,000 to $90,000, body contouring devices run $100,000 to $250,000, and most successful spas open with at least two device categories. Initial inventory of injectables (Botox, Dysport, hyaluronic acid fillers) requires $20,000 to $50,000. Software (EHR, scheduling, POS, marketing) runs $5,000 to $15,000 to launch. Working capital to cover the first six months of operating losses is $75,000 to $150,000. Licensing and entity formation under state-specific medical director rules runs $5,000 to $20,000. Med spas in states with strict corporate practice of medicine rules require a friendly PC structure that adds legal cost.
The American Med Spa Association reported the average med spa generated $1.4M in revenue in 2023 (AmSpa 2024 State of the Industry report, reflecting 2023 data).
Most successful med spas reach breakeven in 12 to 18 months on $1M+ in first-year revenue.
Source: AmSpa industry data
Capital equipment depreciation over 5 to 7 years is the largest fixed cost driver in year one.
What this means for clinic owners
From Sorso
Underestimating working capital is the most common reason new med spas close before 18 months. Plan for at least six months of operating expenses on top of buildout and equipment, regardless of how aggressive your revenue forecast looks.
Related questions
What is the average cost per patient encounter?
Average cost per patient encounter ranges from $80 to $250 for primary care, $150 to $400 for specialty care, and $30 to $90 for physical therapy visits, depending on payer mix and overhead structure.
What is a med spa worth?
Med spas typically sell for 4x to 7x EBITDA for single-location and add-on acquisitions, and 6x to 9x EBITDA for multi-location platforms, with valuations heavily weighted toward recurring membership revenue and provider retention.
When should I add a second clinic location?
You should add a second location when your first location is at 80 percent or more capacity utilization, has 25 percent or higher EBITDA margins, and you have 6 to 12 months of operating cash plus dedicated growth capital.
What is Section 179 for medical equipment?
Section 179 lets medical practices immediately expense up to $2.5M of qualifying equipment placed in service in the tax year (for tax years beginning after Dec 31, 2024, per OBBBA — Public Law 119-21, signed July 4, 2025; $2.56M for tax year 2026 per Rev. Proc. 2025-32), instead of depreciating it over multiple years.
Founder of Sorso. 19 years in corporate finance. Managed a $450M loan portfolio before building a fractional CFO firm exclusively for healthcare clinics.
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