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Medical Billing Revenue Calculator

Estimate your practice's annual revenue and see how much you could recover with improved billing. Enter your numbers below to get an instant analysis.

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Your Revenue Estimate

Annual Gross Revenue

$900,000

Lost to Denials

-$72,000

Lost to Low Collection Rate

-$82,800

Net Collected Revenue

$745,200

Potential Recovery

Under an assumed target scenario of 97% collection and 3% denials:

$846,810

Gap to that scenario: $101,610/year

This gap is arithmetic between your inputs and an assumed scenario. It is not a forecast, a benchmark or an amount MedPrecision claims to recover. The assumption is illustrative: the AAFP publishes an adjusted collection rate of 95% at minimum (95–99% average) and a 5–10% denial rate, as guidance without a sample behind it.

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How This Calculator Works

This revenue calculator estimates your practice's annual collectible revenue based on key billing metrics. Here's the methodology:

  • Gross Revenue = Monthly Patient Visits x Average Reimbursement x 12 months
  • Denial Loss = Gross Revenue x Denial Rate (claims rejected by payers)
  • Collection Loss = (Gross Revenue - Denial Loss) x (1 - Collection Rate)
  • Net Revenue = Gross Revenue - Denial Loss - Collection Loss
  • Target Revenue = the same Gross Revenue under an assumed scenario of 97% collection and 3% denials. This is an illustrative assumption chosen to show the shape of the arithmetic, not a published benchmark and not a promised outcome.
  • Denials and the collection shortfall are applied in sequence, not added: the collection rate applies to what is left after denials. Every figure on this page is computed from one model (src/data/revenue-model.ts), so the numbers shown before you touch a control are the same numbers the calculator produces for those inputs.

Note: This is an estimate for educational purposes. Actual revenue varies based on CPT mix, payer contracts, geographic location, and other factors. Get a free billing audit for a detailed practice analysis.

Revenue Calculator FAQ

Common questions about medical billing revenue and collection improvement.

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How is medical billing revenue calculated?

Medical billing revenue is calculated by multiplying patient volume by average reimbursement per visit, then applying your collection rate. Factors like payer mix (Medicare, Medicaid, commercial insurance, self-pay), denial rates, and days in A/R all affect the final collectible revenue.

What is a good collection rate for a medical practice?

The only freely-public primary source for physician practices is the AAFP, which states that the adjusted collection rate "should be 95%, at minimum" and that the average collection rate runs 95% to 99%. That is practice-management guidance published with no sample, denominator or data year behind it — not a measured benchmark. No free primary source publishes an observed net-collection-rate median for physician practices, and this page states that blank rather than relay a number from a secondary one.

How much revenue can a practice recover with better billing?

No sourced figure exists for this, and this page does not publish one. The gap the calculator shows is arithmetic between the inputs you entered and an assumed target scenario — it is not a prediction, a benchmark or a result MedPrecision claims to produce. What the assumed target is built on: the AAFP puts the industry-average denial rate at 5% to 10% and says keeping it below 5% is more desirable. Whether any of that gap is recoverable in a particular practice depends on its payer contracts, specialty, coding accuracy and A/R process, and can only be established by looking at its actual remittance data.

What factors affect medical practice revenue the most?

The factors that move practice revenue most are collection rate, claim denial rate, payer mix, coding accuracy and days in A/R. This page deliberately attaches no percentage to each: we found no free primary source that quantifies their individual contribution for physician practices, and the figures in general circulation are relayed from secondary articles without a denominator. The two that do have a published reference point are the denial rate and the collection rate — see the Benchmarks Report, which states each figure with its source, population and basis, and states a blank where no primary source exists.

How does payer mix impact revenue?

Payer mix matters because allowed amounts for the same CPT code differ by payer, and those amounts come from your own contracts rather than from a published table. Medicare pays from the Physician Fee Schedule, which is public; commercial rates are set in each negotiated contract and are not published; Medicaid rates are set per state. This calculator therefore asks for your average reimbursement per visit instead of applying a payer-mix multiplier, because any multiplier we supplied would be invented for your contracts.

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This model uses the defaults shown above. Send us your actual visit volume, average reimbursement and current collection and denial rates and we will run the same arithmetic on them, and tell you which of the two levers is worth more in your situation. Written findings in 3-5 business days.

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