Practice Overhead Calculator
Overhead rate from expenses and collections.
Inputs
Results
Overhead rate
58%
Monthly net income
$84,000
Total monthly overhead$116,000
Annual overhead$1,392,000
Net income per provider (annual)$336,000
Staff cost % of revenue30%
Annual overhead per provider$464,000
Excess overhead vs benchmark$0
Monthly break-even collections$116,000
Operating margin42%
Facility (%) Of Revenue7.5%
Supplies (%) Of Revenue6%
Billing (%) Of Revenue5%
How to Use This Calculator
- Enter Monthly collections (net cash received) as the revenue baseline — do not use gross charges.
- Input each expense category: Staff salaries & benefits, Rent & utilities, Supplies & drugs, Billing & collections, IT & EHR, Insurance & legal, and Admin & miscellaneous.
- Enter Number of providers to calculate per-provider metrics for benchmarking against MGMA data.
- Review Overhead rate — primary care benchmark is 60%; rates above this indicate areas needing cost reduction.
- Check Staff cost % of revenue (target 25–35%) and break down which expense categories are out of line.
- Use Monthly net income and Break-even collections to set minimum revenue targets for financial sustainability.
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