AFH Private Pay Rate Calculator
Estimate a suggested private-pay planning rate from monthly costs, occupied residents, and a desired margin. This is not a “correct” AFH rate. Markets and care needs vary.
These calculators provide estimates for planning purposes only. Actual costs, reimbursement rates, taxes, staffing requirements, licensing requirements, and profitability can vary by location and individual circumstances. This tool is not financial, legal, tax, licensing, or medical advice. Results are based on entered assumptions.
How it works
- Total monthly cost adds the expense fields you enter.
- Cost per occupied resident is total monthly cost divided by occupied residents.
- Suggested planning rate is cost per occupied resident divided by (1 − desired margin percentage).
- Estimated monthly profit is suggested rate × occupied residents minus total monthly cost.
- Private or shared room is recorded for context and does not change the math unless you run the calculator twice with different costs.
Example using the default assumptions
If total monthly cost is $20,000, five residents are occupied, and desired margin is 20%, cost per occupied resident is $4,000 and the suggested planning rate is $5,000. That is a planning figure, not the rate any specific market will pay.
Important assumptions
- Desired margin is a planning target, not a guarantee.
- Local private-pay rates may be higher or lower than the suggested figure.
- Care needs, room type, and included services affect what families will pay.
Frequently asked questions
Is this the correct AFH rate?
No. It is a suggested planning rate based on your costs and target margin. Actual rates vary by market and care needs.
Should private and shared rooms have different rates?
Often yes. Run the calculator once for each room type with the costs and occupancy that apply.
What margin should I use?
There is no required margin. Try more than one figure and compare with local quotes and the profit calculator.
Does this include owner pay?
Only if you put owner compensation in the expense fields.
Can Medicaid rates be lower than this suggested rate?
Yes. Medicaid uses published classifications and schedules, not this cost-plus worksheet.
Is this legal or licensing advice about rates?
No. It is a planning worksheet.
Need another AFH estimate?
Explore occupancy, staffing, startup costs, Medicaid rates, and other Adult Family Home planning tools. Every calculator is free and works without an account.
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