If you’ve spent any time on our site, you would have seen countless mentions of “average session rates” as a key measure of private practice performance.
But what is it exactly?
As the name suggests, it is the average dollar value of the sessions conducted in your practice within a given period.
How do you calculate the average session rate?
The average session rate is easy to calculate, as long as you know the following figures:
- Total revenue from sessions during a specific period
- Total number of session in the same period
Total Revenue / Total Number of Sessions = Average Session Rate/Fee
(If you’d rather use a calculator, check out our Average Session Rate Calculator!)
Total revenue last month = $10,000
Total number of sessions last month = 50
$10,000 / 50 = $200
This means, on average, each session in your practice in the last month cost $200.
What does the average session rate tell you about your business?
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The average session rate figure is useful for countless business-related exercises, including the following instances:
- Set realistic revenue goals
- Manage available and required session hours in order to hit your revenue goals
- Calculate how your overall revenue is impacted by a decrease/increase in your average session rate
- Evaluate your practice performance (and each practitioner’s performance)
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