Practice Economics Simulator
Simulate financial models, practice valuation, and marketing funnels for your mental health practice.
Disclaimer
The information provided by this tool is for general informational purposes only and should not be considered as professional financial, legal, or business advice. All calculations and projections are estimates based on the information you provide and general industry assumptions.
Every practice is unique, and actual results may vary significantly. We recommend consulting with qualified professionals before making any financial or business decisions based on the information provided by this tool.
Interactive Practice Simulator
Adjust parameters to simulate different practice scenarios and see the financial impact
Disclaimer
The information provided by this tool is for general informational purposes only and should not be considered as professional financial, legal, or business advice. All calculations and projections are estimates based on the information you provide and general industry assumptions.
Every practice is unique, and actual results may vary significantly. We recommend consulting with qualified professionals before making any financial or business decisions based on the information provided by this tool.
Practice Economics Dashboard
Key metrics for mental health practice financial health
Client Lifetime Value
LTV:CAC Ratio: 8.3:1
Break-Even Point
Monthly Revenue Needed: $40,000
Contribution Margin
$2200 per clinician monthly
Expense Breakdown
Break-Even Analysis
Key Insights
- ✓Your practice needs 5 clinicians to break even with the current cost structure.
- iEach client brings in $1242 in lifetime value, which is 8.3x your acquisition cost.
- %Your contribution margin is 27.5%, meaning each clinician contributes $2200 monthly toward fixed costs.
The Economics of Mental Health Practice
Why clinician compensation is structured the way it is
Mental health practices operate within a complex economic ecosystem that balances revenue generation, operational expenses, and sustainable growth. Understanding these dynamics helps explain why clinician compensation is structured the way it is.
For practice owners, the challenge is creating a sustainable business model that provides quality care while generating sufficient revenue to cover expenses and compensate clinicians fairly. For clinicians, understanding these economics helps in making informed career decisions.
This guide breaks down the key financial components that influence clinician compensation in private practice:
- Revenue streams and reimbursement rates
- Client acquisition and retention economics
- Operational expenses and overhead
- Key performance indicators that drive practice success
Disclaimer
The information provided by this tool is for general informational purposes only and should not be considered as professional financial, legal, or business advice. All calculations and projections are estimates based on the information you provide and general industry assumptions.
Every practice is unique, and actual results may vary significantly. We recommend consulting with qualified professionals before making any financial or business decisions based on the information provided by this tool.
For Practice Owners
Understanding these economics helps you build a sustainable practice that can offer competitive compensation while maintaining profitability.
For Clinicians
Knowing how practices operate financially helps you evaluate compensation offers and understand the value you bring to a practice.