Introducing the SimplePractice Income Calculator
To help you find a rate that feels right and covers your expenses, we created a free tool that crunches the numbers for you. The SimplePractice calculator lets you create and customize a budget that best reflects your practice, and easily visualize and save multiple scenarios.
How much should I charge?
You’ve earned your degree, honed your skills, and ventured out into the world of private practice. Now comes the first hurdle: How much do you charge for a session?
This question causes anxiety even for experienced professionals. You want to be paid fairly, but you may have a difficult time assigning a monetary value to the services you provide.
Setting your rate isn’t just about fairness and compensation. Ultimately, you need to understand how much you must earn to cover your expenses. This includes business expenses (e.g., rent, liability insurance, continuing education, and practice management software) as well as personal expenses (e.g., student loans or a mortgage). In order to truly have a successful practice, you need to be profitable.
Since you can’t build a profitable practice unless you’re charging enough to cover your expenses, it’s important to understand exactly how much you need. Think about your personal monthly expenses, multiple the total by 12, and that should give you a rough estimate. So, let’s say you want to make $70K a year, after business expenses. By working backwards and playing around with the various inputs (clients per week, rate, vacation), we came up with the following three scenarios that all result in $70K per year:
- 21 total clients (10 full-fee, 11 insurance)
- Full-fee rate: $115; Insurance rate: $58
- 4 weeks of vacation
- 15 total clients (13 full-fee, 2 insurance)
- Full-fee rate: $125; Insurance rate: $56
- 3 weeks of vacation
- 15 total clients (9 full-fee, 6 insurance)
- Full-fee rate: $150; Insurance rate: $75
- 4 weeks of vacation
What Will I Make This Year?
Another way to use the calculator is to estimate your projected income based on your current rates and weekly session count. For example, if you see 20 clients per week and plan to take four weeks of vacation time annually, you can calculate the rate you need to charge to get to your ideal income.
We hope you will find this calculator useful. SimplePractice is committed to sharing innovative tools and tips to help our customers. If you have any suggestions on how we can improve the calculator, we welcome your feedback in the comments section below!