Professional services
Medical Practice Revenue Calculator
Projects practice revenue, where payer mix matters more than volume.
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 average collected revenue per visit, scaled annually with margin applied. The sensitive input is revenue per visit, which is a weighted average of the allowed amounts across the practice's payer mix rather than anything the practice sets, so a projection that holds volume and changes mix produces a very different answer.
What moves the number
- Payer mix and the allowed amounts in each contract.
- Visit volume and the mix of visit types.
- Net collection rate.
- Self-pay share, where the practice's own fees apply.
Where this one goes wrong
A practice can grow visits and see revenue fall if the growth comes from lower-paying payers, which is why projecting volume without projecting mix is unreliable. Model the mix explicitly. Self-pay is the only segment where the practice's own fee schedule determines revenue rather than a contract, which makes it worth understanding separately rather than averaging into the whole.
Before you quote
- Project payer mix, not just visit volume.
- Use collected revenue per visit, not charges.
- Treat self-pay separately from contracted payers.
Where the rules come from
Questions
About this calculator
Can a practice grow visits and lose revenue?
Yes, if the growth comes from lower-paying payers. Revenue per visit is a weighted average of contracted allowed amounts, so a change in mix moves revenue without volume changing at all. Projecting volume alone misses it entirely.
Does the practice set its own prices?
Only for self-pay patients. For contracted payers the allowed amount governs regardless of the charge, which is why the fee schedule is largely irrelevant to revenue and payer contracts are where the negotiation actually matters.
Which revenue figure should a projection use?
Collected revenue per visit, after contractual adjustments and net of the collection rate actually achieved. Charges overstate by a wide margin, and a projection built on them produces hiring and spending decisions the practice cannot support.
The formula
revenue = visits x average value; gross profit = revenue x margin
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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.