Professional services
Medical Practice Monthly Revenue Calculator
Works monthly revenue, where the lag between visits and payment distorts the picture.
Result
Service lines rarely carry the same margin. Splitting them is the only way to see which part of the business is paying for the rest, which is frequently not the part that looks busiest.
Get a Free Business AuditHow the calculation works
Visits per month times collected revenue per visit, with the monthly cost base alongside. The complication in a practice is that a month's receipts reflect visits from previous months, so a monthly revenue figure measures collection timing as much as current activity, and reading it as a measure of this month's work is misleading.
What moves the number
- Visits completed in the month.
- Days in accounts receivable, which sets the lag.
- Payer mix, which varies the lag as well as the amount.
- Seasonal patterns in demand.
Where this one goes wrong
Track visits and charges by month alongside receipts, because a strong receipts month can follow a weak visit month and a weak receipts month can follow a strong one, and judging performance on cash alone misreads both. The two series together show whether a change is in activity or in collection. Seasonal patterns matter as well, since demand in many specialties varies predictably across the year and comparing consecutive months rather than the same month last year produces false signals.
Before you quote
- Track visits and charges alongside receipts.
- Compare against the same month last year, not last month.
- Watch days in accounts receivable for timing shifts.
Questions
About this calculator
Why does monthly revenue not match monthly activity?
Because receipts reflect visits from previous months. A strong receipts month can follow a weak visit month and the reverse, so judging performance on cash alone misreads both. Tracking visits and charges alongside receipts separates the two.
Should I compare against last month?
Against the same month last year, since demand in many specialties varies predictably across the year and consecutive-month comparisons produce false signals. A seasonal dip read as a decline leads to decisions that the next month reverses.
What does a sudden drop in receipts mean?
Check days in accounts receivable before concluding anything about demand. A collection or submission problem shows up as a receipts drop with activity unchanged, and the two causes need entirely different responses.
The formula
revenue = visits x average value; gross profit = revenue x margin
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Visits per month. Enter your own figure; the page starts at 28.
- Average value ($). Enter your own figure; the page starts at $2,600.
- Gross margin on this work (%). Enter your own figure; the page starts at 58%.
- Share of total revenue (%). Used to show what the whole business turns over.
The result updates as you type, so you can try a figure, see what it does to visit revenue per month, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Visits per month | 28 |
| Average value | $2,600 |
| Gross margin on this work | 58% |
| Share of total revenue | 40% |
What comes out
| Result | Value |
|---|---|
| Visit revenue per month main result | $72,800 |
| Per year | $873,600 |
| Gross profit per year | $506,688 |
| Implied total business revenue | $2,184,000 |
The repair line brings in $873,600 a year and earns $506,688 of gross profit on it.
How sensitive the answer is
Holding everything else steady and changing only average value, this is what happens to visit revenue per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average value ($) | Visit revenue per month |
|---|---|
| $1,300 | $36,400 |
| $1,950 | $54,600 |
| $2,600 example above | $72,800 |
| $3,900 | $109,200 |
| $5,200 | $145,600 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Visits per month
- A number, between 0 and 10000, starting at 28.
- Average value ($)
- A money amount, starting at $2,600.
- Gross margin on this work (%)
- A percentage, between 0 and 95, starting at 58%.
- Share of total revenue (%)
- Used to show what the whole business turns over.
What the results tell you
| Result | What it is |
|---|---|
| Visit revenue per month | The headline result. A money figure. |
| Per year | A money figure. |
| Gross profit per year | A money figure. |
| Implied total business revenue | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.