Income Calculator
for Private Practice

How To Estimate Your Income?

 

Estimating your income as a therapist in private practice comes down to determining two key pieces of information:

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• your revenue, and

• your expenses.

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Naturally, the more accurate you are in your estimates, the more accurate your result.​

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Did You Know?

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We created a spreadsheet to help you estimate your private practice income, and we also created a video as a guide for how to use it. Here are the links:

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Private Practice Income Estimate Spreadsheet Link

Note: clicking the spreadsheet link will create a copy of the spreadsheet in your Google Drive

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Video Titled "How to make $100,000 in Private Practice" 

In the video, Ashely Phillips shows you a path to a 6-figure income in private practice using the aforementioned spreadsheet.​

Estimating Expenses​

 

Estimating expenses can be a little trickier, unless you work on a revenue split agreement.

 

Revenue Split Agreement

 

With a Revenue Split Agreement, estimating your expenses is a simple calculation. If you have a 70/30 split with the clinic, 70% of what you bill is yours. So take your estimated total revenue from the previous section and multiply it by 70% or by 0.7. This will give you your estimated pre-tax income.

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Rental Model or Traditional Private Practice

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If you want to run a more traditional private practice without a revenue split, you'll have some regular expenses to consider. Broadly speaking, private practice expenses fall into one of the following 7 categories:

 

1: Office Related

 

Office related expenses include things like the cost of your office, utilities, furniture, and equipment.

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2: Financial

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Financial expenses include items like credit card processing fees, bank fees, and insurance. 

 

3: Private Practice Costs

 

Private practice costs include costs of admin, specialized software like JaneApp, and subscriptions. 

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4: Professional Fees

 

Professional fees include costs of bookkeeping, accounting, and legal advice.

 

5: Marketing

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Marketing costs are for advertising, Google Adwords, Facebook Ads, Psychology Today, and any other promotional avenues that you choose to pursue. If you hire someone to help you, include their fees here as well.

 

6: Professional Development

 

We all know that in order to become a better therapist, you'll need to take some courses. Include the costs of the courses you plan on taking, as well as any travel related expenses here.

 

7: Other & Miscellaneous 

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This category is for any expenses not captured in any of the previous 6 categories. There is always something you'll forget to account for.

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Add up the totals for each of the above categories to get your estimated total expenses. 

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Subtract your estimated total expenses from your estimated total revenue to arrive at your estimated pre-tax income.

 

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