Revenue & ROI calculator
Cost-to-Collect Calculator
Cost to collect answers a simple question: for every dollar your practice collects, how many cents did billing spend to collect it? It is the fastest way to compare billing arrangements honestly, because it uses your.
What this calculator shows
Cost to collect answers a simple question: for every dollar your practice collects, how many cents did billing spend to collect it? It is the fastest way to compare billing arrangements honestly, because it uses your total billing expense against your total collections for the same period.
Use the same period for both figures, a month or a year, and include everything billing truly costs: staff, software, clearinghouse, statements and management time.
Revenue & ROI calculator
Cost-to-Collect Calculator
Find out what you spend to collect each dollar of revenue.
How the calculation works
Cost to collect = billing expenses / collections x 100. Cost per $1 is the same division before multiplying by 100: $6,000 of expenses on $100,000 collected is 6%, or $0.06 spent to collect $1.
How to read your result
A percentage on its own does not say whether billing is good or bad; a low cost with high denials can be more expensive than a higher cost that collects more. Read it beside your denial rate and days in A/R. Our analytics and reporting work keeps these three numbers in front of owners every month.
Looking for another measure? See all medical billing calculators or the formulas collected in our medical billing KPIs guide.
Before you rely on the number
Results are estimates for educational and operational planning, built from the figures you enter. They are not guarantees of reimbursement, savings or recovery, and they do not replace a review of your own claims, contracts and remittances. Do not enter patient-identifiable or protected health information: this calculator runs in your browser and nothing you type is stored or sent anywhere.
FAQ
Calculator questions
Still have a question? Talk to our team about your billing workflow.
What should I include in billing expenses?
Billing staff pay and payroll costs, billing software, clearinghouse fees, patient statement costs, and a fair value for management time spent on billing. The more complete the list, the more honest the percentage.
Is a lower cost to collect always better?
No. Cutting follow-up lowers cost and collections together. The useful comparison is cost to collect alongside collection rates and denial rates over the same months.
Monthly or yearly figures?
Either, as long as both boxes cover the same period. Yearly figures smooth out seasonal swings and are better for comparing arrangements.
Want this run on your real claims?
A free billing assessment reviews your actual denials, A/R and contracts, then gives you these numbers from your own data, in writing, before you decide anything.