If you’re reading this, you’ve likely launched your private practice, have a few clients coming in, and now you’re wondering…
How long until I’m not just covering costs, but actually making money?
It’s a very fair question!
The short answer? It depends.
The honest answer? Probably not right away, and that’s okay.
Let’s break it down so you can see what “profitable” actually looks like in a therapy practice, how long until your therapy practice is profitable, and what you can do to get there faster (without burning out).
First, What Does “Profitable” Mean?
Profit = what’s left over after you pay all your expenses—including your own salary.
A lot of therapists start out thinking:
“I made $5,000 this month, I’m profitable!”
But if $4,000 went to rent, EHR, supervision, taxes, and you only paid yourself $500… you’re not quite there yet.
We define a profitable practice as one that:
- Covers your business expenses
- Pays you a consistent salary (or owner draws)
- Has money left over for taxes and savings
It might not happen right away, but it’s something to build toward.
So… How Long Does It Take?
In our experience working with tons of therapy practices, it usually takes 6–18 months to become consistently profitable.
Here’s why:
- Month 1–3: You’re just getting started. Setting things up. Maybe seeing a handful of clients. Expenses are front-loaded (website, EHR, supervision, etc.) and income is uneven.
- Month 4–9: You’re slowly building up your caseload. Some weeks are full, some aren’t. You’re figuring out your systems and fee structure. Maybe still working part-time elsewhere.
- Month 10–18: Caseload is more steady. Word-of-mouth kicks in. You start to feel like “okay, this is a real business.” You can begin paying yourself more regularly and setting aside tax money with confidence.
Some people get there faster. Some take longer. It’s not a race. The important part is building something sustainable.
What Affects Your Timeline?
Here’s what makes a big difference:
- How many clients you see per week
(And whether they’re private pay or insurance) - Your session rate
Higher rates = more room to cover expenses and pay yourself. Even a $10/session difference adds up.
Hint: Use our template to determine what your average session rate should be.
- Your overhead
Renting an office vs. telehealth only? Group practice vs. solo? These impact how much you need to earn before turning a profit. - Your time and availability
Are you doing this full-time or part-time while working another job? - How you handle taxes and bookkeeping
If you’re not setting money aside for taxes, it might look profitable—until April hits. (Oof.)
How to Reach Profitability Faster (Without Burning Out)
There’s no shortcut, but there are some smart moves that can help you speed up the process:
- Keep overhead low early on
You don’t need the fanciest office or software to start. You just need something solid that works for now. - Set your rates with intention
Don’t just copy what others charge. Know your numbers. Know what you need to cover expenses and pay yourself. - Track your numbers early
Even if it’s just a spreadsheet. Know how much is coming in, how much is going out, and what’s left over. You can download our expense tracker for free, here. - Separate your business and personal accounts
This one change makes everything easier to track—and gives you a clearer picture of profitability. - Work with a good bookkeeper (👋 hi)
We can help you understand where your money’s going, what’s working, and what you can adjust as you grow.
TL;DR? Expect a slow-ish start, but steady growth if you keep at it.
Most therapy practices aren’t profitable on Day 1 (or Month 3). But if you’re intentional about your money, charge fairly, and build at a pace that works for you, you can absolutely get there.
And if you want someone in your corner who knows therapy practices inside and out, and can handle the books and taxes while you focus on the clinical stuff, we’re here for that.
👋 Ready to talk about getting your practice profitable? Let’s chat.
Happy growing!
