Current-value decision model
Compare contract structures under one attendance horizon
The calculator prices a flexible plan only in expected active months and prices an annual plan with prepaid dues plus inactive-month freeze charges. Attendance is used to normalize cost, not to predict behavior.
| Contract line | Unit amount | Count or probability | Scenario value |
|---|
Detailed calculation process
Formula, substitutions, intermediate results, and reconciliation
C_flex = S_f + mA; C_prepaid = S_p + Y + q(12-A)
A is expected active months, m the flexible monthly fee, Y the annual prepaid fee, q the freeze fee, and S the applicable signup charge.
Five-step contract comparison
Freeze the same use case for both plans
- Copy recurring and initiation charges from each written offer.
- Estimate active months from travel, seasonal sports, school, or work commitments.
- Record the annual plan's actual freeze charge for every expected inactive month.
- Use the same active-month attendance estimate in both cost-per-visit calculations.
- Review totals before per-visit metrics, then inspect cancellation and renewal clauses outside the model.
Five scenario fundamentals
Keep unlike contract mechanics visible
Active-month billing
The flexible scenario charges recurring dues only during entered active months.
Prepayment exposure
The annual scenario commits dues even when attendance falls or circumstances change.
Freeze mechanics
A freeze may preserve a contract without providing ordinary access and can carry its own fee.
Common visit denominator
Both per-visit results divide by the same expected attended visits to prevent a false comparison.
Sunk signup fees
Each offer's initiation cost belongs in the first comparison year, not hidden in dues.
Symbol register
Default contract arithmetic
| Symbol | Meaning | Default | Unit |
|---|---|---|---|
| m | Flexible monthly dues | 92 | USD/month |
| A | Active months | 9 | months |
| Y | Annual prepaid dues | 900 | USD/year |
| q | Freeze charge | 10 | USD/inactive month |
| V | Visits per active month | 8 | visits/month |
| S | Plan-specific signup charge | 45 or 25 | USD |
Default substitution: flexible = 45 + 92 x 9; prepaid = 25 + 900 + 10 x (12 - 9). Each total is divided by 9 x 8 attended visits.
Three contract lenses
Interpret the cheaper scenario carefully
Attendance uncertainty
Run a lower active-month case before prepaying; the annual price stays fixed while its cost per attended visit rises.
Renewal asymmetry
A low first-year annual price may renew at another rate, while a flexible plan may change month to month.
Access equivalence
Do not call the totals comparable when hours, locations, classes, childcare, or booking priority differ materially.
Two scenario cases
Seasonal absence and steady use
Three months away
A traveling worker expects nine active months and explicitly prices annual-plan freezes. Flexible billing can win even if its advertised monthly rate looks higher.
Full-year regular use
A local member enters twelve active months and zero freeze months. The prepaid discount can then be evaluated without inactivity distortion.
Contract glossary
Terms that change the comparison
- Active month
- A month in which ordinary gym use is expected.
- Prepaid dues
- Access charges paid before the service year unfolds.
- Freeze
- A contract pause governed by plan-specific rules.
- Initiation charge
- A one-time cost to begin a plan.
- Cost per attended visit
- Contract outlay divided by visits actually expected.
- Comparison horizon
- The shared twelve-month period used for both offers.
Scenario questions
Frequently asked questions
Is the annual plan always cheaper when its monthly equivalent is lower?
No. Signup fees, freeze charges, inactive months, and nonrefundable prepayment can reverse the comparison.
Why enter visits if totals do not depend on them?
Visits normalize both totals into a cost-per-attended-visit metric and reveal how lower attendance changes value.
Should vacation months be inactive months?
Only if you expect little or no use and the flexible plan can actually be paused or cancelled without extra cost.
How do I handle a free first month?
Reduce the applicable billed active-month count or fee only when the written promotion clearly applies to your contract.
Does the calculator value contract flexibility?
It prices direct entered fees, not the option value of cancelling, moving, switching locations, or changing routines.
Can I compare plans with different services?
You can see arithmetic, but a decision is invalid unless you separately value material differences such as classes, childcare, pools, and locations.
Evidence and exclusions
Contract terms remain decisive
- The model excludes taxes, late fees, rate changes, cancellation penalties, and time value of prepayment.
- Expected attendance is a planning input, not a behavioral forecast.
- Different services and locations can make cost-per-visit comparisons misleading.
- Freeze eligibility and maximum duration must come from the actual contract.
Evidence record: retain both offers, fee schedules, freeze clauses, expected travel calendar, and the exported scenario. Do not choose solely on expected cost when cancellation liability is material.
Sources and next steps
Consumer contract context
- FTC consumer alert on gym memberships — contract and cancellation review.
- CFPB paying-for-services questions — general billing records and dispute context.