Earning $100,000 per year as a counselor, therapist, or psychologist in private practice is the goal for many, but how realistic is it, really? What does making $100,000 per year really mean, how much do you need to charge to actually make $100,000 per year? Start learning in this video about therapists' private practice salary, how to set your fees, how much you need for insurance and retirement, and much more.
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20,000 a year 30,000 a year, 60,000 a year, 100,000 a year, what's, a realistic private practice salary for a therapist, how much money do counsellors in private practice actually make and what's realistic for you all that.
And more in this video let's dive in my name is John Clark from private practice, workshop, comm I'm, a licensed therapist, I'm, a former private practice owner I sold my group practice back in April 2019.
And now I work full time in helping therapists grow their business, the dream for many counselors therapists and psychologists and private practice is to make the coveted 100k per year.
But what does that even mean a hundred thousand dollars per year in gross revenue or a hundred thousand dollars per year in the money that you take home or in your net profit for me? This has to be your net.
Number I've, met a lot of private practice owners who have a really high gross revenue like five hundred thousand dollars a year.
But then I asked them about their net.
In other words, their take-home pay, and they say, it's, 40,000 or 50,000 or 60,000 out of that.
Half a million dollars a year.
So above all else as a business owner, you have to constantly prioritize profit at the end of the day that's, really the only number that matters.
So let's face.
It therapists want more freedom in money than typical mental health jobs allow for yes, jobs like nonprofits agencies, College counseling centers, etc, offer security in the form of a consistent salary health insurance and benefits.
But when you look at the money, you could be making in private practice.
You start to see how the math really adds up I.
Now, put job security in quotation marks because someone wants to told me something that completely changed my mind about this I was talking to someone who has a full-time job and I basically said, man, your job is so much more secure you have job security and I don't being self-employed.
And this is what he said, he said, actually, it's the opposite when I'm employed by a company, I don't, really control.
My appointment, in fact, I could lose it at any moment in an incident without notice on the other hand, when you are a business owner, it usually doesn't happen this fast.
If your business is going downhill, if the business is losing money, you usually can see it coming, and you can do something about it in that regard to be a business owner to control your own income really means you actually have more job security than a person with a regular job.
So let's talk about some actual numbers again for many private practitioners.
The big goal is to make 100 thousand dollars per year in order to take home $100,000 per year.
How much do you need to generate in general here's? My rule of thumb, take the number that you want to take home.
And then add about thirty percent on top of that.
This might be a conservative number for some depending on your situation and your expenses how much you paying taxes, etc, or it might be a conservative number for some, but it's, just a starting point for you to start doing some more realistic math.
So, for instance, let's say, I want to take home $100,000 per year.
Let's, go ahead and add 30 percent to that for expenses taxes, etc, and therefore I need to generate a hundred and thirty thousand dollars per year.
Now, how realistic is it to generate a hundred and thirty thousand dollars per year? And what are my fees need to be in order to hit that goal? Here's? How to do it? You take your big number for your gross revenue.
So one hundred and thirty thousand dollars you take that number you divide it by the number of weeks per year.
You want to work let's go with 48 as an example that's taking off for weeks per year.
One hundred and thirty thousand dollars divided by 48 equals two thousand, seven hundred and eight dollars and 33 cents that.
You need to generate every single week for 48 weeks in a year.
So again, a hundred and thirty thousand divided by 48 equals two thousand, seven hundred and eight dollars and 33 cents now that's your weekly target.
You need to then just take your weekly target number and divide it by how many clients per week.
You want to see let's take, for example, two thousand seven hundred eight dollars and 33 cents divided by fifteen clients per week dividing.
These numbers is going to give you your exact session fee.
And in this case that exact session fee is a hundred and eighty dollars and 55 cents there.
You have it if you charge a hundred and eighty dollars and 55 cents per counseling session.
And you see 15 people a week you're going to generate a hundred and thirty thousand dollars a year and take home, roughly one hundred thousand does that fils ound a little high for you and your area your market in your background.
If so let's just take our weekly number divided by twenty clients, a week, two thousand seven hundred eight dollars and 33 cents divided by 20 clients per week, gives us a session fee of a hundred and thirty-five dollars and 42 cents sound, more doable, I hope.
So in this illustration, you can see that making a hundred thousand dollars.
Private practice is not only realistic, but it's quite doable, especially when you work the numbers a bit, and you set your fees based on your income goals, not based on what other people are charging, or what you think you're worth, etc.
So you figure that part out, but what about everything else that you're not getting from having a normal job? Everything like paid time off health insurance, sick, leave retirement.
Well, the simplest way to do this is for you and your family to sit down with an accountant or financial planner to figure out how much it's gonna cost for you to basically create your own benefits package, and then add that to your gross revenue goal for the year.
So for instance, let's say, you need to generate an extra twenty thousand dollars to pay for everything like health insurance paid time off a a 401 K for retirement, etc.
So you would just take that number and add it to our first number.
So we were at a hundred and thirty thousand of gross annual revenue, let's, add twenty thousand for all the benefits.
We just listed as an example.
And then now our gross revenue target is one hundred and fifty thousand dollars per year again, you're gonna do the math and reverse-engineer it back to see what your face should be now, or if you need to maybe add additional revenue streams, passive income ideas, like an online course, a membership site, maybe doing speaking engagements, maybe doing workshops for therapists, etc.
We have tons of free materials and resources for you on this channel.
And at private practice workshop, comm for you to learn how to do all this stuff and add revenue streams to your practice.
So that you can go beyond just trading time for money, whatever you do make sure that you're making decisions in your private practice based on hard facts and hard numbers.
Never make decisions based on emotion, find your big number and then work backwards from there.
If you do that, you stay completely focused on that number year after year, you're gonna hit your goal.
You're gonna make a lot more money than you ever would in an agency or nonprofit, etc.
And you can be a very successful therapist in private practice, again, I hope.
This video was helpful.
My name is John Clark from private practice, workshop, comm hit that subscribe button.
Let me know what you thought in the comments below let me know, what's your in goal, where are you getting stuck? How much would you like to make? What do you think is getting in the way otherwise again, enjoy the other free videos in this channel head to private practice, workshop, comm for more free help and to learn more about working with us.
I'll see you soon.
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The average salary for Private Practice Therapist is $69,389 per year in the Canada.What is a Counsellor vs psychologist? ›
Counsellors adopt a more person-centred approach, says Dr Snell. 'If you went to see a psychologist, they would probably do quite a comprehensive assessment to begin with, whereas a counsellor would begin by listening and discussing what your goals are,' he says.What is the hourly rate for Counsellor in Canada? ›
|Mental Health Counselor||Range:C$18 - C$49||Average:C$30|
|Child and Youth Worker||Range:C$15 - C$31||Average:C$20|
|Addiction Counselor||Range:C$18 - C$31||Average:C$24|
|Career and Employment Counselor||Range:C$21 - C$30||Average:C$26|
- Toronto, ON. $41.07 per hour. 89 salaries reported.
- Ottawa, ON. $39.33 per hour. 28 salaries reported.
- Vancouver, BC. $36.20 per hour. 25 salaries reported.
- Oshawa, ON. $33.74 per hour. 9 salaries reported.
- Hamilton, ON. $28.76 per hour. 49 salaries reported.
- Show more nearby cities.
The average therapist salary in Canada is $73,895 per year or $37.89 per hour.