Enter charges, contractual adjustments and payments to get the net collection rate — the honest measure of how much collectible money you actually collect.
Two rates, one honest one
The gross collection rate (payments over charges) mostly measures how inflated the charge master is. The net collection rate divides payments by what was actually collectible — charges minus contractual adjustments — and answers the question that matters: of the money we were entitled to, how much did we get? Enter the three figures and this calculator returns both rates, labelled for what they are.
How to use it
- Enter gross charges for the period.
- Enter contractual adjustments (the negotiated write-offs).
- Enter payments collected — read NCR against the ~95% target.
The formulas
A worked example
$1,000,000 in charges with $350,000 of contractual adjustments leaves a $650,000 collectible base; $585,000 collected is a 90% net collection rate — while the gross rate reads 58.5%. The 90% says the practice is leaking about $65,000 of entitled revenue — to denials, underpayments, bad debt or write-offs — and the sub-95 reading is the signal to find which.
Estimates only — payer contracts, plan documents and the EOB are always the source of truth, and nothing here is billing, legal or medical advice. The calculator runs entirely in your browser: no patient data is entered, transmitted or stored.