Where does the money go?
Clients pay $205 a session, and sessions are 45-50 minutes on a weekly basis.
Here are the associated costs with owning a private practice:
Taxes take around 30-40% of the session fee = 82 per session
Rent is 695 a month
Internet is 22 a month with our shared router
Supplies and postage cost 50-100 per month
Simple Practice basic 529/year
Money gets put aside each quarter for furniture or office upgrades: 50-100 per month
LLC renewal, liability insurance, and associated costs = 60 a month set aside
CEU’s: 60 per quarter for employees, which doesn’t roll over - so make sure to use it!
Let’s say you see 10 clients a week, every week of the month. That’s about equal to 40 sessions.
40 sessions brings in: 8200
40% tax is 3280 = 4920
Minus rent at 695 = 4225
Minus Expenses = 3923
You’re paid 50 an hour, plus that extra 20 bonus for seeing 10 clients every week. So, 70*40 = 2800
Kelsey takes in 1123 after expenses for the month, or around an 72/28 split in your favor.
What if you book 10 clients each week, but they late cancel or no show and you don’t charge them, meaning you don’t get paid.
Averaging 8 sessions a week instead, you’re booking 32 sessions, bringing into the practice: 6560
40% tax is 2624 = 3936
Minus rent = 3241
And monthly expenses = 2939
You get paid $50 for each session, bringing you 1600
Kelsey takes in 1339 after expenses for the month, or about a 55/45 split in your favor.
The Take Home:
As your caseload grows, so does your wage (obviously!) So to run the numbers for you, here are a few examples of what you end up taking home the more you work.
You see 10 clients a week, at 50/hour plus a 20/hour bonus once you’re at 10 or above clients.
While caseloads ebb and flow in private practice, let’s say you average about 8 clients each week.
You take time off for vacations, holidays, or even being sick. So out of 52 weeks of the year, you’re maybe working closer to 46.
50 dollars an hour, 8 hours a week, 46 weeks a year = 18,400
If you had 10 clients a week for part of the year, maybe for 2 months, you can access that bonus.
50 dollars an hour at 8 hours a week for 46 weeks = 18,400
PLUS an extra 20 dollars an hour at 10 hours a week for 8 weeks = 2400
Your total take home for the year? 20,800
So for working 8-10 client hours each week with time off and a flexible schedule, you’re bringing home between 18 and 20 thousand each year.
As your hours increase each week, what you take home grows.
So seeing 15 clients a week = 48,300
Or seeing 20 clients in a week = 64,400
I want to be as upfront as possible about our fee and our expenses, so that you know where the money goes.
And this can be an ongoing conversation, too. As questions arise, bring them up!