See the result before and after shared bills

The first part of the calculation takes collected revenue and subtracts clinician compensation and billing or payment fees. It shows what remains before the practice costs assigned to this clinician.

The final result also subtracts the rent, admin, software, marketing, fixed benefits and other amounts you enter. Reading both figures helps distinguish an expensive pay arrangement from a large share of practice overhead.

Assign shared costs in a way you can explain

Direct costs, such as a clinician’s own software seat, can go to that clinician. Shared costs need an allocation that fits their use. Office days can help divide room costs; time spent supporting each clinician can help divide admin costs.

A simple equal split may be enough for an initial view when schedules are similar. Use the same method when comparing clinicians, and make sure the shares add back to the practice’s total. A negative allocated result does not mean those shared bills disappear if a clinician leaves.

Use break-even to understand the workload

The break-even result is the completed weekly workload needed to cover the pay and costs assigned here. It includes the effect of time off and rounds up to a whole session.

If the target is unrealistic for this clinician’s hours or responsibilities, review collected rates, the pay arrangement and the costs assigned. Consider supervision, management duties and time spent building a caseload before turning a financial target into a performance expectation.

Common questions

Is this the therapist’s take-home pay?

No. Clinician compensation is a cost in this calculation. The result is what the practice has left after that pay, the entered employer payroll costs, billing and payment fees, and the monthly costs assigned to this clinician.

How should I enter a salaried clinician?

Choose annual salary and enter the full amount paid over the year. Enter working weeks separately to allow for time off. Salary is not reduced when working weeks or session volume falls. Put benefits and nonclinical costs in the monthly box only when they are not already included.

What if I do not know how to split overhead?

Start with costs directly tied to the clinician, then choose a consistent share of the remaining practice costs. For example, you can allocate room costs by office use. Keep track of that method; changing the share changes the final result even if the clinician’s revenue and pay stay the same.