In-house vs outsourced billing cost calculator

1. 01In-house cost per year = billers × salary × (1 + benefits load) + (software + other monthly costs) × 12
2. 02Percentage model per year = monthly collections × 12 × rate
3. 03Per-claim model per year = claims per month × 12 × fee per claim
4. 04Flat-fee model per year = monthly fee × 12
5. 05Per provider per month = cost per year ÷ 12 ÷ providers

Assumptions and limits

• Collections are what the practice actually receives, not charges. A percentage quote is normally applied to collections, and the contract defines which collections count.
• In-house cost covers salary, employer payroll taxes and benefits (the load you enter), software and the other monthly costs you list. It does not price the owner's or manager's time spent on billing, recruiting or covering a vacancy; add that to other costs if you want it counted.
• The salary reference is the national BLS median for billing and posting clerks, and the load reference is the private-industry average; neither is specific to your market. Your payroll provider's employer-cost report and local pay data are better inputs when you have them.
• The ranges are the quotes you enter. The calculator does not know what any company charges and does not show a Remitwright price.
• Cost is only one side. Collection rate, days in A/R and denial rate change with who does the work; the comparison page lists the cases where in-house is the better choice.