Net collection rate calculator
Calculate your net collection rate from payments, charges, and contractual adjustments over a settled period.
Updated
Enter your own figures to calculate your net collection rate — the share of collectible revenue you actually collected, after removing the contractual adjustments you were never entitled to collect.
Total payments received over the period.
Gross charges billed over the same period.
The difference between billed charges and contracted rates — the amounts never collectible under contract.
Enter your figures to see the result and a breakdown.
How it’s calculated
Payments ÷ (Charges − Contractual adjustments) × 100
Measured over a defined period, usually with enough lag for claims to fully adjudicate, so recent still-open claims do not distort the figure.
What this assumes
- The period should be settled — far enough back that claims have fully adjudicated. Recent still-open claims distort the figure.
- Charges minus contractual adjustments is your collectible revenue. If that figure is zero, there is nothing to collect and no rate to calculate.
- The result is the arithmetic on the numbers you entered. It is not compared to a benchmark, because timing and payer mix affect it — read it as a trend over a settled period.
How to read the result
A higher net collection rate means more of the revenue a practice is entitled to is actually collected; a persistent gap below 100% points to avoidable leakage — write-offs, underpayments, or bad debt. Because timing and payer mix affect it, read it as a trend over a settled period, and treat any external benchmark as directional, not absolute.
Read the full net collection rate definition