What Peloton is and how the business model works

Peloton is a direct-to-consumer fitness company that sells stationary bikes and treadmills, then charges a monthly subscription for access to live and recorded workout classes. You buy the hardware once — a bike costs around $1,500 to $2,500 depending on the model, and a treadmill runs $2,500 to $4,000 — and then pay a monthly fee to stream classes led by instructors. The subscription is separate from the equipment purchase; you own the bike or treadmill outright, but the classes require an active membership.

The company makes money two ways: the upfront sale of the equipment and the recurring monthly subscription. This is different from a gym membership, where you pay one fee for access to everything. With Peloton, the equipment is yours to keep, but without the subscription, the bike or treadmill becomes a stationary machine with no access to the class library, leaderboards, or instructor-led workouts. Some basic features like manual workouts still function without a subscription, but the core product — the live and on-demand classes — requires the monthly fee.

Key Takeaways

  • Peloton equipment is a one-time purchase, but the classes that make the equipment valuable require a separate monthly subscription.
  • Monthly subscription costs vary by membership tier, with options for single-user or household plans that cover multiple people.
  • You can use Peloton equipment without a subscription, but you lose access to the class library, instructor guidance, and performance tracking features.
  • Peloton also offers a digital-only subscription that works on phones, tablets, and some smart TVs without requiring the company's hardware.
  • The total cost of ownership includes both the equipment price and the ongoing monthly subscription, which adds up significantly over time.

Equipment options and pricing

Peloton makes three main pieces of equipment: the Bike, the Bike+, and the Tread (treadmill). The standard Bike is the entry-level option and costs less than the Bike+, which includes a larger screen, better speakers, and a rotating screen that works with off-bike classes. The Tread is a motorized treadmill designed for running and walking workouts. Prices change periodically and vary by region, so the exact amount you pay depends on when you buy and where you live.

Beyond the three main products, Peloton also sells smaller accessories like weights, yoga mats, and shoes, which are optional add-ons. The equipment itself is delivered and assembled by a third party, not by Peloton directly. Shipping and setup fees are typically included in the purchase price, though this varies by location.

Subscription tiers and monthly costs

Peloton offers several subscription options. A single-user membership covers one person and costs a set monthly amount. A household membership covers multiple people in the same home at a higher monthly price. There is also a digital-only subscription that does not require Peloton hardware; it works on your phone, tablet, or compatible smart TV and gives you access to the same class library as the hardware subscription.

The monthly cost of each tier varies and changes over time. Peloton periodically adjusts pricing, so the amount you pay when you sign up may differ from what new members pay later. If you already have a subscription, price increases typically explore to new billing cycles, not retroactively to existing members, though this depends on your contract terms and when you signed up.

What happens if you stop paying the subscription

If you cancel your subscription, you keep the bike or treadmill — it does not stop working or get remotely disabled. However, you lose access to the live and on-demand class library, the leaderboard, performance metrics, and instructor-led workouts. The equipment becomes a basic stationary bike or treadmill with no connectivity to Peloton's platform. You can still use it for manual workouts, but you will not have the guided classes or the ability to track your performance through the Peloton app.

Canceling the subscription does not require you to return the equipment or pay a penalty. You straightforward stop paying the monthly fee. If you want to reactivate later, you can restart your subscription at any time, and your account history and performance data will still be there.

How Peloton compares to other fitness options

Unlike a traditional gym membership, Peloton requires a large upfront hardware investment. A gym membership typically costs $30 to $100 per month with no equipment purchase, while Peloton costs $1,500 to $4,000 upfront plus $15 to $40 per month depending on the subscription tier. Over five years, a Peloton bike and subscription can cost $2,500 to $4,400 total, whereas a gym membership over the same period might cost $1,800 to $6,000.

Peloton also differs from other at-home fitness equipment because the classes are central to the product. A regular stationary bike costs $300 to $800 and requires no subscription, but you do not get the instructor-led classes or the community features. Peloton's value proposition is the combination of the hardware and the class experience, not the equipment alone.

The digital-only subscription sits between a traditional gym and the full Peloton experience. It costs less than the hardware subscription and works on devices you already own, but you do not get the specialized equipment or the full feature set of the Peloton Bike or Tread.

Financing and payment options

Peloton offers financing plans that let you spread the equipment cost over time instead of paying the full amount upfront. These plans typically run 12 to 39 months, depending on the option you choose. The financing is provided by a third-party lender, not by Peloton directly, and you will be charged interest based on the lender's terms and your creditworthiness.

Some financing plans are interest-free for a set period — for example, 12 months with no interest — but interest accrues after that period ends if you have not paid off the balance. Read the terms carefully before signing up, because the interest rate and total cost can vary significantly based on the plan length and your credit profile.

Frequently Asked Questions

Can I use Peloton equipment without paying for a subscription?

Yes, the equipment will still function as a basic stationary bike or treadmill without a subscription. However, you will not have access to the class library, instructor-led workouts, leaderboards, or performance tracking through the Peloton app. Most people buy Peloton specifically for the classes, so using it without a subscription defeats much of the purpose.

What is the difference between the Bike and the Bike+?

The Bike+ has a larger rotating screen, better speakers, and can be used for off-bike classes like yoga and strength training. The standard Bike has a smaller fixed screen and is primarily designed for cycling. The Bike+ costs more upfront but offers more features. Both require the same subscription to access classes.

Can I share my Peloton subscription with family members?

Yes, if you have a household membership, multiple people in your home can use the same subscription. Each person gets their own profile and can track their own performance. A single-user membership covers only one person, so if you want multiple household members to have access, you need to upgrade to the household plan.

What happens to my account if I move and take my Peloton with me?

Your subscription follows you. Peloton is a digital service, so as long as you have internet access and your equipment, you can use your subscription anywhere. There are no geographic restrictions, and you do not need to notify Peloton of a move.

Is there a contract or cancellation fee if I want to stop my subscription?

Peloton subscriptions are month-to-month with no long-term contract required. You can cancel at any time without a penalty. However, if you financed the equipment, you still owe the full amount to the lender regardless of whether you keep the subscription active.