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Revenue & ROI calculator

Medical Billing ROI Calculator

The return on better billing rarely comes from the billing fee alone. It comes from denied claims getting worked, underpayments getting caught and old A/R getting collected before it ages out. This calculator puts your.

What this calculator shows

The return on better billing rarely comes from the billing fee alone. It comes from denied claims getting worked, underpayments getting caught and old A/R getting collected before it ages out. This calculator puts your current cost next to the revenue currently exposed, then shows three clearly labelled improvement scenarios so you can judge the trade with your own numbers.

The scenarios are assumptions, not forecasts. Conservative assumes 10% of denied revenue and 5% of A/R over 90 days is recovered in a year; moderate assumes 25% and 10%; improvement assumes 40% and 20%. Change the assumption in your head before you change anything else.

Revenue & ROI calculator

Medical Billing ROI Calculator

Compare what billing costs you with the revenue stuck in denials and old A/R.

Payments posted in a typical month.
Staff, software, clearinghouse and your time, as best you can total it.
From your latest aging report.
Current annual billing cost—
Current cost to collect—
Revenue in denied claims, per month—
Conservative scenario, per year (assumption)—
Moderate scenario, per year (assumption)—
Improvement scenario, per year (assumption)—

Cost to collect = monthly billing cost / monthly collections x 100. Revenue in denied claims = monthly collections x denial rate (an approximation that treats collections as the value of a month of claims). Each scenario adds a share of that denied revenue, annualized, to a share of A/R over 90 days collected once.

Estimates only, from your figures. Nothing you enter is stored or sent anywhere; do not enter patient-identifiable information.

How the calculation works

Cost to collect = monthly billing cost / monthly collections x 100. Revenue in denied claims = monthly collections x denial rate (an approximation that treats collections as the value of a month of claims). Each scenario adds a share of that denied revenue, annualized, to a share of A/R over 90 days collected once.

How to read your result

Read the scenario lines as 'if follow-up recovered this much, it would be worth about this much a year' and compare that with your current annual billing cost. If even the conservative line is small next to your cost, your billing is probably not your biggest problem. If the moderate line dwarfs your cost, the follow-up work is where the money is, whether your own team or a service does it.

Our guide to medical billing KPIs shows how to keep measuring after any change, and the revenue cycle management page describes what the work behind those scenarios actually looks like day to day.

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.

Does this calculator compare Fastora's price?

No. It uses your current cost and your revenue exposure. Any billing service, including Fastora, should be judged the same way: written quote, measured against recovered revenue and cost to collect over time.

Why three scenarios instead of one ROI number?

Because recovery depends on payer deadlines, denial mix and balance age. A single number would pretend to know your claims. Three labelled assumptions are more honest and more useful for planning.

What counts as billing cost?

Billing staff salaries and payroll costs, billing software, clearinghouse fees, statement costs, and the share of management time spent on billing. Leaving your own time out understates the true cost.

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.

Call Free Billing Assessment