A/R & Collections calculator
Net Collection Rate Calculator
The net collection rate removes the part of your charges you never expected to collect, the contractual adjustments, and asks: of what was actually collectable, how much arrived? That makes it the cleanest single.
What this calculator shows
The net collection rate removes the part of your charges you never expected to collect, the contractual adjustments, and asks: of what was actually collectable, how much arrived? That makes it the cleanest single measure of billing effectiveness across practices with very different charge levels.
Use payments, charges and contractual adjustments for the same dates of service, over a period long enough that payment timing evens out. A quarter is a good minimum.
A/R & Collections calculator
Net Collection Rate Calculator
Of the money you could collect under your contracts, how much did you?
How the calculation works
Net collection rate = payments / (charges - contractual adjustments) x 100. Example: $114,000 paid on $200,000 charged with $80,000 contractual adjustments is 114,000 / 120,000 = 95%.
How to read your result
The remaining collectable amount is the honest to-do list: money your contracts say you may collect that has not arrived, sitting in denials, underpayments and patient balances. Its counterpart, the gross collection rate, ignores adjustments and always looks worse; we explain both in the medical billing KPIs guide. Chasing the gap is the daily work of revenue cycle management.
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.
Why subtract contractual adjustments?
Because that money was never collectable under your payer contracts. Including it punishes the rate for your fee schedule rather than your billing.
What if payments include patient payments?
Include all payments for those charges, insurance and patient. The rate measures total collection against total collectable.
Why use dates of service instead of calendar months?
Payments arrive weeks after charges. Matching payments to the same services, over a long enough window, avoids a rate that swings with timing rather than performance.
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.