---
title: "Service margin calculation"
description: "Four numbers that give a session gross margin."
canonical: https://tomsharman.com/bookshelf/gym-launch-secrets/service-margin-calculation/
updated: 2026-11-03
---

# Service margin calculation

> Four numbers that give a session gross margin.

Alex Hormozi's framework, from Gym Launch Secrets, pp. 183 to 192.

Framework 12 of 33 from [Gym Launch Secrets](https://tomsharman.com/bookshelf/gym-launch-secrets/index.md) by Alex Hormozi. Category: Money and finance.

## The steps

1. **Number of sessions.** Sessions per week times 4.3.
2. **Revenue per session.** Monthly revenue divided by total sessions.
3. **Cost to fulfil each session.** Hourly pay times the payroll multiplier of 1.22.
4. **Margin.** Revenue minus cost, divided by revenue.

## Where it comes from

From chapter: Chapter 10, The Overhead Lever, pp. 183–192

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/service-margin-calculation.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/service-margin-calculation-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/service-margin-calculation.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/service-margin-calculation-dark.png