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Have you ever looked at your med spa expenses and thought, “Where is all my money going?”
You’re not alone.
The funny thing is, most prospective med spa owners may not fully realize the full scale of their overheads until they’re knee-deep in running their business.
Between rent, staff salaries, the latest medical equipment, and enough high-end skincare products to fill a small warehouse, costs can add up quickly.
That’s why understanding your operational costs is critical.
Knowing where every buck is going helps you plan smarter, boost profitability, and — most importantly — avoid those “uh-oh” moments when bills come in.
So, let’s break down med spa operational costs, piece by piece, so you can make informed financial decisions and ensure your med spa is thriving, not just surviving.
How much does it cost to run a medical spa?
The costs of running a med spa aren’t just about the one-time set-up costs. There are many ongoing expenses that will either minimize or maximize its profitability.
These expenses can fluctuate based on factors such as:
- Location: Rent amount varies by location — expect higher pricing in high-traffic urban areas than in suburban or rural spots
- Service offerings: Advanced treatments like lasers or premium injectables means higher equipment, products, and skilled staff costs
- Client volume: More regular clients is great, of course, but it also means you’ll have higher costs for staff, consumables, and product supplies
In fact, according to industry reports, the estimated monthly operating expenses for a medical spa range from anything between $30,000 to over $70,000.
What are the startup costs for a medspa?
Before launching a med spa, a detailed checklist of all your essential costs is key to planning your budget and securing the right financing.
Now, let’s break those costs into pieces.
📍Location and lease
Securing the right location for your med spa is a major upfront expense. You’ll also have to account for in rental payments every month.
Typically, it’s up to the landlords to decide the type of payment they want for the space, so here is a breakdown of the key costs involved:
- Lease deposits: In the US, prime commercial spaces may require up to six months’ rent upfront as a deposit, with leases ranging from $3,000 to $10,000 monthly.
- Monthly rent: The rent costs will vary depending on location, square footage, and traffic.
- Additional fees: Some leases include Common Area Maintenance (CAM) fees, property taxes, and insurance, adding $1,000-$5,000 per month.
- Equipment and supplies: Again, depending on the services your med spa offers, essential costs for this can range from $100,000 to $300,000.
- Marketing: Successful med spas need a solid marketing strategy to attract and retain business, which might cost from $20,000 to $50,000.
- Software solution: Investing in a management software system to streamline med spa operations can cost from $5,000 to $20,000.
🔨Renovations and equipment
Reputable med spas need to offer clean, inviting, and professional spaces.
To transform your med spa into a functional, client-ready facility, you’ll need to invest upfront in renovations and high-quality equipment.
The cost of those things will depend on:
- The current space condition: If the space is completely empty you’ll need to deal with build-out costs — walls, plumbing, and electrical. Even a ‘finished’ space may need upgrades for med spa standards.
- The size of the space: Bigger space = more square footage to renovate and equip.
- The services you offer: You’ll need high-quality injectable supplies, consumables, machines, treatment chairs, and so on.
Depending on whether you’ll need to renovate the space and transform it to fit a med spa environment, costs can range from $50,000 to over $150,000.
📜Licensing and permits
In the US, all med spas must obtain licenses and permits to operate legally. Again, these are costs that widely vary based on location, the services you offer, and the regulations in the state you’re operating from.
Here are some of the licenses/permits you may need in your med spa:
☑️Business licenses and permits to operate legally
☑️Professional licensing for medical professionals
☑️Medical director licenses
☑️Health department permits
The average costs for these licenses and permits can range from $10,000 to $30,000.
👩⚕️Initial staffing and training
Staffing costs are one of the biggest expenses at med spas.
Not only are there the initial costs of recruiting a team, but you’ll also be paying ongoing salary expenses every month. And that’s not all. Providing quality training for your employees should be a non-negotiable investment, because
- Skilled injectors and estheticians ensure safer, high-quality treatments while building client trust, which keeps customers coming back.
- Even experienced staff need ongoing training to stay updated on industry trends, evolving protocols, safety and hygiene standards
Prioritizing hiring and training ensures your med spa is set up for long-term success.
📢Promoting med spa opening
A grand opening for a med spa that’s about to be open can set the tone for its success. However, it can get very pricey if you don’t plan carefully.
Before getting carried away with finding the perfect balloon arch backdrop to capture those med spa opening moments, put your business head on.
Let’s break down the costs you’ll need to factor in for an event:
- Local advertising: You’ll need to budget costs for print media, adverts in local newspapers or magazines, radio advertisements, and good old-fashioned advertising, such as mailing flyers or postcards.
- Social media campaigns: You’ll also need to set aside budget for social media ads to target beauty-conscious locals and even to hire a professional photographer or videographer to generate some buzz.
- Event costs: Med spa promotion costs for decorations, catering, a DJ, gift bags, or giveaways will add more expenses to your budget.
⚖️Legal and consulting fees
Navigating med spa business regulations requires expert help. This means paying attorneys and consultants for things like
- Business formation
- Staff contracts
- Compliance
Legal help like this could cost anywhere from $1,500 to $2,000.
The typical operational costs for a med spa
Once your med spa is open for business, it’s the operational costs that will shape its profitability. Let’s take a look at those costs, one by one.
Rent and utilities
Among other expenses, med spas have ongoing costs for leasing commercial space and utilities. Here’s an overview of those costs:
✅Rent: Commercial rent rates in the US vary based on location, property type, and market conditions. As of 2025, the national average full-service equivalent listing rate for office space for a 2,000-square-foot space would cost about $5,563 monthly.
✅Type of property: Office space averages approximately $38 per square foot per year, retail space around $18.09/year, and industrial space around $8 per year.
✅Utilities: The average utility cost for a small business in a commercial building is approximately $2,14 per square foot per month. For example, a 2,000-square-foot space = $4,280 per month.
Staff salaries and benefits
Payroll is the largest recurring expense at med spas. If you take a closer look at staffing requirements, ideally, a med spa has:
☑️A Medical Director (MD)
☑️Aestheticians
☑️Practitioners
☑️Administrative staff
If your med spa falls into the small-scale category with a headcount of less than five employees, you can expect to spend around $8,000-$12,000 monthly for payroll.
Product replenishment
Your service offerings and client volume dictate how often you restock injectables, skincare, and consumables — costs that add up fast. Here’s the breakdown:
- Injectables: Botox costs $10-$30 per unit, with treatments averaging $300-$600. Hyaluronic acid fillers, depending on the brand, range from $400-$800 per syringe
- Skincare: Expenses for skincare products and cosmetics can range from $20,000 to $50,000 annually
- Disposable supplies: Costs for needles, syringes, gowns, and drapes are estimated at $7,500
Medical supplies
The quality of medical-grade supplies and equipment at med spas could decide the fate of the business. However, don’t jump in too quickly.
While investing in cutting-edge technology is important and can provide a USP for new businesses looking to stand out, it’s not always the right move early on.
High-cost equipment should be carefully evaluated — factoring in ROI, demand, and long-term value — before investment. Ongoing maintenance and upgrades also add to the cost, so it’s crucial to crunch the numbers.
Costs can include the following:
- Lasers
- Ultrasonic facial machines
- Facial beds
- Body sculpting machines
- Sterilization equipment
- Equipment and supplies for chemical peels and microneedling
- A kit for PRP
Insurance
At most med spas, the treatments offered might involve certain risks and complications.
That’s why getting professional liability insurance isn’t just a safety net — it’s a must. Having the right policies in place will protect the reputation of your business and your staff and provide your clients with peace of mind.
Here’s why:
☑️Covering malpractice claims: If a client experiences an adverse reaction and claims for negligence, insurance like this helps you cover legal fees, settlements, or damages.
☑️Protecting you against lawsuits: A client could claim for improper treatment and without insurance, a lawsuit could be financially devastating.
☑️Ensuring credibility: Insurance will reassure your clients that your business is professional and reputable, which helps with brand perception.
The cost of that insurance will vary based on your needs, but you can initially plan on budgeting around $2,000 to $5,000 annually.
Technology and software
Investing in the right technology, like a software management system, can drastically reduce admin costs and improve med spa efficiency.
Automating some of the manual tasks that eat up time — such as taking bookings over the phone or sending intake forms to clients — can be critical. It also means staff can focus on higher-value tasks like providing great customer service.
Key cost-saving areas include:
- Appointment booking and scheduling
- Patient record management
- Marketing
- Billing and invoicing
- Inventory management
- Staff schedule management
Finding a robust software solution with all these functionalities packed into one system can be a really worthwhile investment for new med spas.
Marketing and advertising
Consistent marketing is key to keeping those appointment slots full, with the average monthly marketing budget ranging between $1,600 and $15,000.
Of course, costs vary depending on how established the med spa is, along with revenue, specialty, location, service number, and competition.
Whether it’s digital ads, social media campaigns, or local promotions, here’s a recommended digital marketing budget allocation:
You may also want to factor in advertising costs for specific campaigns or events. For example, a new service launch or new membership program.
Key factors affecting operational costs
The monthly operational costs of med spas aren’t set in stone. They shift based on several key factors, and understanding them can help you budget smarter.
Let’s dissect the most prominent ones:
- Location and lease: Med spas in cities like LA or New York require a bigger lease than those in smaller towns.
- Size of the facility: A larger space means higher rent, utilities, and maintenance costs.
- Utilities: Bills for electricity, water, internet, HVAC upkeep, and cleaning services.
- Equipment and supplies: Lasers, injectables, and skincare products, to keep up with demand.
- Furniture: Depending on the luxury level of decor you want for your med spa, those are expenses for treatment beds, waiting room chairs, and other office furniture and amenities.
- The number of treatment rooms: The more rooms you have to operate, the bigger the revenue potential will be, but it also means that you’ll need more staff and equipment = more costs.
- Staffing and salaries: The payroll for your nurses, practitioners, receptionists, and other staff is usually one of the biggest recurring expenses you’ll have.
- Software technology: Successful med spas use medical software for booking, payments, client management, and marketing, but these come with monthly fees.
- Unexpected repairs: You must consider issues that can unexpectedly drain your budget, like a broken laser machine or an urgent plumbing problem.
Drive financial success for your med spa with Pabau🚀
Running a successful med spa requires more than a cursory understanding of your financials. You need a clear, detailed view of both start-up and operational costs.
A 360° approach will help you stay on budget, with no ‘surprise!’ costs.
For that, Pabau can be your ally. It’s an all-in-one practice management software that handles scheduling and booking, patient record management, marketing your business, and more. It can also help med spas drive financial success:
🚀Automated appointment confirmations and reminders: Avoid no shows and late cancellations and set up robust deposit rules so you don’t lose $$.
🚀Staff management tools: Set up a commission program, track hours worked with clock in and clock out functionality, and ensure your staff get paid!
🚀Integrated billing and payment processing: Reduce errors and chargebacks by automating invoices and payments
🚀Built-in marketing suite: No need for a third party tool. Run your marketing directly from Pabau with email and SMS campaigns, gift cards, etc.
🚀Inventory management: Track stock levels in real-time so you only restock what’s needed
Book a demo to see how Pabau can transform your med spa — the business you worked so hard to build!
