Free tool
Med Spa Profitability Gap Calculator
Small percentage gaps become large dollar numbers. Enter your figures and a reference point for each driver to see what the gap is worth in a year. No email required.
Benchmark exposure
The dollar size of each gap against your reference points.
Product cost (COGS)
3 points gap. Product cost above the reference, in dollars a year.
What drives product cost$60,000
$80,000
Realized-price leakage
2 points gap. Revenue given up below the menu beyond the reference.
What a discount really costs$40,000
Provider utilization
10 points gap. Paid provider time that goes unbooked beyond the reference.
Capacity and break-even$56,000
These figures identify areas worth investigating. They are not estimates of guaranteed savings or recoverable profit. These figures show where a gap may exist, not what can be recovered. Service mix, geography, staffing model, and accounting classification can explain some or all of it. Driver exposures can overlap and must not be added together. Diagnosis determines what's actually driving it and how much is controllable.
Want to know what is actually driving the numbers?
Request a Strategy CallHow to read it
Exposure is where the question starts.
A gap against a reference point says a problem may exist. It does not say how much of it is fixable. Service mix, geography, staffing model, and how costs are classified can explain some or all of it.
01
Benchmark exposure
What this calculator shows: the dollar size of a gap between your numbers and a reference point.
02
Addressable opportunity
The part of that gap caused by factors the practice can control. It takes a diagnosis to know.
03
Recoverable impact
A conservative estimate of what specific changes could realistically recover. It is only set during engagement work, never by a calculator.
Definitions
What each number means
Comparisons only work when both numbers use the same definition. These are the definitions this calculator assumes.
- Cost of goods sold as % of total revenue
- Product and supply cost consumed in treatments plus cost of retail products sold (including waste and expired product written off)÷Total net revenue
- Total payroll as % of total revenue
- All staff compensation (provider and administrative wages, commission, bonuses) plus employer payroll taxes÷Total net revenue (services plus retail, after discounts and refunds)Report provider and administrative payroll separately as well; the total alone hides where labor is drifting.
- Realized-price leakage
- Menu-price value of services delivered minus revenue actually collected for them (discounts, comps, promotions, package and membership pricing below menu)÷Menu-price value of services deliveredMeasures how far realized pricing sits below the published menu.
- Provider utilization
- Hours providers spend in booked, completed treatment time÷Hours providers are paid to be available for treatment
The number is the start of the question, not the answer.
A Strategy Call is where we look at what is behind a gap like this in your practice, and whether it is worth diagnosing.