Have you thought about going into private practice? Are concerns about the money you will make holding you back? There are many factors to consider in determining how much money you can make. How many clients you get and the expenses you have to pay will determine how much you actually make. This article explores how much you can make in private practice if you put the work into it.
Obviously, how much you actually make will be determined by how many clients you get. If you only get a few clients, you’re not going to make enough for it to be your only income. But if you put a lot of work into your practice, you can make a decent income. And if you get a full caseload, you can make more money than you can at most agencies. This article explores how much you can make with a full caseload.
How Much Money Can You Make in Private Practice?
The first thing to consider is how many clients you can see in a week. I think about 35 is the most anyone can handle. You cannot expect to see clients every hour you are at work. There are administrative tasks that need to be completed that will take up some of your time.
If you see 6 clients a day, you still have a couple of hours to write notes and to manage the business. You might want to spend another hour or two a day blogging, developing your website and spreading word about your business on social media. That’s a 10 hour day at the most. I don’t think that is unreasonable for a new business.
In the figures below, I used the largest amount you will probably spend on expenses. I thought it better to underestimate the possible income than overestimate it.
So, consider these figures:
6 clients X $90 per hour = $540 a day
$540 a day X 5 days a week = $2,700 a week
$2,700 a week X 4 weeks = $10,800 a month
$2,700 X 50 weeks (2 for vacation) = $135,000 a year
Don’t get too excited. I haven’t deducted expenses or taxes yet.
So, let’s consider some expenses:
Office supplies = $20 a month
Rent = $500 a month
(This can be even higher depending where your office is located but with office sharing, you can pay much less)
Advertising = $100 a month
Electronic Medical Records = $50 a month
(This can be eliminated if you do paper charting.)
Billing agency = 7% = $10,800 X .07 = $756 a month
(If you choose to do the billing yourself, you can eliminate this charge. Some electronic medical records make it easy to do the billing on your own.)
Insurance = $500 a year = $42 a month
Trainings = $75 a month
Miscellaneous Expenses = $50 a month
$20 + $500 + $100 + $50 + $756 + $42 + $75 + $50 = $1,593 a month
These expenses are tax deductions so I will subtract them before taxes to give a rough idea of your income.
$1,593 / 4 weeks = $398 a week
$398 a week X 50 weeks = $19,900 in expenses a year
$135,000 – $19,900 = $115,100
$115,100 – $22,562 in taxes = $92,538 (I used an online tax calculator.)
That’s still more than $90,000! How many agencies pay that much in a year? I’ve never heard of an agency paying that much. But I will be honest with you. There are other things to factor in to the equation.
You probably won’t make that much your first year. You have to build up a clientele before you can have 6 clients a day. The first year or two will be a struggle to get clients. And even after that, you will always lose clients for one reason or another so you have to continue to add clients who take up more of your time. And there will always be clients who don’t show up.
As you can see, it is never a simple equation for how much you make and you rarely make the same amount each week or month. If you get a good referral source, you can see as many clients as you have time for. So it is more than possible to make money in private practice and you can certainly make more than you can at most agencies.