Calculation of Collection Agency Placement Fees

Disclaimer:

This is a fairly close estimate that will return back to the practice almost the entire amount owed.
It will not be exact to the penny and will be slightly less in order to avoid over-collection of the account.
This program is provided as a courtesy and the author, and Teri Perryman, MD do not take any liability for your use of this utility.

Use at your own risk

Account Balance and Collection Fee Information
Account Balance		$
Collection Agency fee (as a percentage)		%
Sales Tax rate (change to 0 if no sales tax on Collection Fees)		%

This calculation is exact if no sales tax is included. Because of sales tax, the calculation is going to result in a placement amount that once collection agency fees and sales tax are paid the practice will receive slightly less than the total account balance (a few cents/hundered dollars to a few dollars/hundered dollars depending on the Sales tax rate).

If anyone knows the correct procedure for calculating with sales tax, please let me know and I will correct.

<html> <head> <script language="JavaScript"> </script> <script language="JavaScript"> </script> <script language="JavaScript">  </script> <title>Collection Agency Fee Calculations</title> </head> <body> <center> <h1>Collection Agency Fee Calculations</h1> </center> <HR> <p>If a patient owed <!balance> on account and your collection agency charges you <!collectionfee> (with sales tax of <!salestax>) then you would need to add <!coladdfee> for the collection agency fee and <!taxaddfee> for sales tax for a total account balance of <!totbal> to be placed with the collection agency.</p> <HR> <p><b>Calculations</b></p> <p> <b>Estimated Collection Agency Fee:</b> (<!balance> divided by (1 minus <!collectionfee>)) less <!balance> = <!coladdfee></p> <p> <b>Estimated Sales Tax:</b> (<!coladdfee> multiplied by <!salestax>) divided by (1 minus <!collectionfee>) = <!taxaddfee></p> <p> <b>Total Est. Collection Agency Fee + Sales tax:</b> <!coladdfee> plus <!taxaddfee> = <!totcolfee></p> <p> <b>TOTAL ACCOUNT BALANCE TO PLACE:</b> <!balance> plus <!totcolfee> = <!totbal></p> <p><b>Backwards check</b></p> <p> <b>Actual Collection Agency Fee:</b> <!totbal> multiplied by <!collectionfee> = <!actcolfee></p> <p> <b>Actual Sales Tax:</b> <!actcolfee> multiplied by <!salestax> = <!acttax></p> <p> <b>Actual Agency Fee + Sales Tax:</b> <!actcolfee> plus <!acttax> = <!totalfee></p> <p> <b>Actual Balance Received from Agency:</b> <!totbal> less <!totalfee> = <!paid></p> <HR> <center> <h4>DISCLAIMER:</h4> <br /> <font size="2"> All figures above are based on the data entered.<br /> These figures represent an estimate of the total balance to be placed with a collection agency based on the account balance, collection agency fees and sales tax information provided. In the backward calculation we show what your practice should receive based on the estimated balance placed with the collection agency. These figures can be used to acheive the expected result as contained on this page within the scope of the information provided. These figures are apt to change based n real-world experiences that may or may not be reflected in the data that was entered. By using this calculator, you expressly agree to holdharmless and indemnify the author, Teri Perryman, MD, the agents, employees and representatives of the author and Teri Perryman, MD against any liability from the use of the results contained herein.</font> </center> </body> </html>

[Privacy Policy] | [Link Policy] | [Contact Us]

Calculation of Collection Agency Placement Fees

Use at your own risk

Account Balance and Collection Fee Information