Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Net collection rate
73.2%
Net collectible revenue
$69,500
Contractual write-off rate
23.2%
Total adjustments
$25,500
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How to use this
- 1Enter total charges billed ($).
- 2Enter contractual/insurance write-offs ($).
- 3Enter other adjustments (courtesy, bad debt) ($).
- 4Read your net collection rate on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Billed charges rarely equal collected revenue once insurance contracts, PPO fee schedules, and courtesy adjustments are applied. This calculator takes total charges billed for a period, subtracts contractual write-offs and any additional adjustments, and expresses the result as a net collection percentage — the number that actually matters for cash flow planning. A healthy fee-for-service or moderately in-network practice usually nets 80-92% of charges; a heavily in-network, high-PPO-volume practice can run 55-75%, which isn't necessarily bad but needs to be priced into the fee schedule and staffing model from the start.
Worked example
Using the values the calculator loads with:
Inputs
- Total charges billed: 95000 $
- Contractual/insurance write-offs: 22000 $
- Other adjustments (courtesy, bad debt): 3500 $
Results
- Net collection rate: 73.2%
- Net collectible revenue: $69,500
- Contractual write-off rate: 23.2%
- Total adjustments: $25,500
What each field means
Inputs
- Total charges billed ($)
- The total charges billed used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
- Contractual/insurance write-offs ($)
- The contractual/insurance write-offs used in the calculation, measured in $. Starts at 22000 $ so you have a working example on load.
- Other adjustments (courtesy, bad debt) ($)
- The other adjustments (courtesy, bad debt) used in the calculation, measured in $. Starts at 3500 $ so you have a working example on load.
Results
- Net collection rate
- Returned as a percentage and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Net collectible revenue
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Contractual write-off rate
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total adjustments
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What's a healthy net collection percentage?
80-92% is typical for practices with a moderate mix of PPO and fee-for-service patients. Below 70% usually means you're in too many low-reimbursement networks relative to your fee schedule, or write-off tracking is catching billing errors that need to be fixed at the source.
Is a low collection rate always a bad sign?
Not necessarily — a practice that intentionally participates in several PPOs to drive volume can run a lower net collection percentage while still growing total dollars collected, because higher patient volume offsets the lower per-visit yield. The key is whether the resulting total revenue and margin support the overhead.
How is this different from a bad debt write-off?
Contractual write-offs are the difference between your billed fee and what an insurance contract allows — you were never entitled to collect that amount. Bad debt is money you were owed but couldn't collect from the patient or payer, which is a separate, smaller category tracked here under 'other adjustments.'
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Insurance Write-Off Adjustment Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/insurance-write-off-adjustment
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/insurance-write-off-adjustment" target="_blank" rel="noopener">Insurance Write-Off Adjustment Calculator — RevenueLab</a> (2026).</p>
Source: [Insurance Write-Off Adjustment Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/insurance-write-off-adjustment) (2026).