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Calcimator

Telehealth ROI Calculator

Return from reduced no-shows, overhead, and expanded access.

About this calculator

This calculator estimates the financial return of adding or expanding telehealth visits in a practice, built from three modeled revenue and savings sources plus the platform's costs. At typical inputs, overhead savings is usually the largest driver in the model, not recaptured no-show revenue -- each telehealth visit is modeled as costing roughly $25 less in overhead than an in-person visit (exam room time, front-desk handling, and related costs), based on commonly cited industry benchmark ranges for per-visit overhead, and that saving applies to every telehealth visit regardless of whether it would have been a no-show. No-show recovery becomes the larger source only at a high current no-show rate (roughly above the high-30s percent, near the top of this calculator's input range): telehealth visits are modeled with a lower no-show rate (about 45% of the in-person no-show rate -- i.e., a roughly 55% reduction) than in-person visits, reflecting widely reported patterns of easier attendance for virtual visits, so shifting volume to telehealth is estimated to recapture some of the visits and reimbursement that would otherwise have been lost to no-shows, but that only outweighs overhead savings once the no-show baseline is quite high.

The third and smallest source is expanded access -- a modest assumption that telehealth's convenience draws in some new patient volume that wouldn't otherwise have been captured. These benefits are weighed against the platform's ongoing annual subscription cost and a one-time setup cost (equipment, EHR integration, and staff training), producing a first-year ROI that includes the setup cost, an ongoing annual ROI from year two onward once setup is already paid for, and a payback period showing how many months of net benefit it takes to recover the initial setup investment (shown as "—" if net benefit isn't positive, since the setup cost is then never recovered). Every multiplier here (no-show reduction, overhead savings per visit, new-patient capture rate, reimbursement parity) is a commonly cited industry benchmark, not a number specific to any individual practice or specialty -- actual results depend heavily on payer mix, telehealth reimbursement parity in the relevant state, patient population, and how well the workflow is actually implemented, so use this as a planning-stage estimate rather than a financial guarantee.

Inputs

%
%

Results

Annual Benefits ($)

$127,296.00

First-Year ROI (%)

226.4%

Ongoing Annual ROI (%)430.4%
Payback Period (months)1.7
Monthly No-Show Recovery ($)$3,168.00
Monthly Overhead Savings ($)$6,000.00
How to Use This Calculator
  1. Enter the total monthly patient visits, the percentage of visits conducted via telehealth, and the average reimbursement per visit.
  2. Enter the current in-person no-show rate along with the annual telehealth platform subscription cost and the one-time setup cost (equipment, EHR integration, and staff training).
  3. The calculator estimates recovered no-show revenue and reduced per-visit overhead from shifting visits to telehealth automatically.
  4. Review the Annual Benefits, First-Year ROI, and Ongoing Annual ROI outputs, along with the Monthly No-Show Recovery and Monthly Overhead Savings breakdown.
  5. Use the Payback Period output to determine when the one-time setup investment is fully recovered.

How the result changes with Monthly Patient Visits

Monthly Patient VisitsAnnual Benefits ($)First-Year ROI (%)
400$63,648.0063.2%
600$95,472.00144.8%
1,200$190,944.00389.6%
2,000$318,240.00716%

What each input means

Monthly Patient Visits
Total monthly patient visits across the practice (in-person + telehealth).
Telehealth Visit Share (%)
Percentage of visits conducted via telehealth.
Avg Reimbursement per Visit ($)
Average payer reimbursement per visit (telehealth parity assumed).
Current No-Show Rate (%)
Current in-person no-show/late-cancel rate. Industry average is 18-23%.
Annual Platform Cost ($)
Annual telehealth platform subscription (Doxy.me, Teladoc, etc.).
One-Time Setup Cost ($)
Equipment, EHR integration, workflow redesign, and staff training.

What each result means

Annual Benefits ($)
Total annual value from no-show recovery, overhead savings, and new patients.
First-Year ROI (%)
Return on investment in year one including setup costs.
Ongoing Annual ROI (%)
ROI from year two onward (no setup costs).
Payback Period (months)
Months until the setup investment is recovered from net benefits. Shows "—" when monthly net benefit is zero or negative — the setup cost is not recoverable at the current inputs.
Monthly No-Show Recovery ($)
Revenue recaptured monthly from reduced no-show rate.
Monthly Overhead Savings ($)
Monthly savings from lower per-visit overhead on telehealth visits.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Monthly Patient Visits = 800, Telehealth Visit Share (%) = 30, Avg Reimbursement per Visit ($) = 120, Current No-Show Rate (%) = 20 = 6 input(s) provided
  2. Calculate Annual Benefits
    Annual Benefits = monthlyBenefits * 12
    127296 = $127,296
  3. Calculate First-Year ROI
    First-Year ROI = firstYearCosts > 0 ? ((annualBenefits - firstYearCosts) / firstYearCosts) * 1...
    226.4 = 226.4%
  4. Calculate Ongoing Annual ROI
    430.4 = 430.4%
  5. Calculate Payback Period
    1.7 = 1.7

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

Why does raising the current no-show rate increase the projected no-show savings?

A higher baseline no-show rate means more visits are being lost today, so there's more revenue available to recapture by shifting volume to telehealth's lower modeled no-show rate. A practice with an already-low no-show rate has less room to gain from this particular benefit, even with the same telehealth mix, because there are fewer missed visits to recover in the first place.

Does increasing the telehealth visit share always increase annual benefits?

In this model, yes -- no-show recovery, overhead savings, and new-patient revenue are all modeled as scaling with the number of telehealth visits, so a larger telehealth share raises all three simultaneously (holding total visit volume, reimbursement, and no-show rate fixed). The model does not account for a point where patient or clinical appropriateness limits how large that share can realistically get for a given practice.

Why does a longer payback period show up with a larger setup cost even though ongoing platform costs stay the same?

Payback period is specifically about recovering the one-time setup cost from net monthly benefit -- a larger setup investment simply takes more months of the same net benefit to pay off, independent of the ongoing annual platform subscription (which is already factored into the monthly net-benefit figure used for the payback calculation, not layered on top of it again).

Are the no-show reduction and overhead savings assumptions specific to any specialty?

No -- they're general industry benchmark ranges (roughly 45% of the in-person no-show rate for telehealth visits, and about $25 less overhead per telehealth visit) rather than figures tailored to a particular specialty, payer mix, or region. Actual results vary by specialty (some lend themselves to virtual care far more than others), local reimbursement parity rules, and how consistently the practice's workflow actually captures these savings.

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