Definition
This is the monetary value of Wage and Superannuation costs paid to a practitioner as a percentage of Total Revenue generated by the practitioner.
Formula
Cost of Practitioner Rate = [Cost of Practitioner] / [Practitioner's Total Revenue] x 100
Example
Allie, a practitioner, has generated $192,000 of Total Revenue over the time period in review (e.g. one year). Over the same time period, the Practitioner Costs of Wages and Superannuation that were paid to Allie totalled $87,500. Allie's Practitioner Investment Ratio can be calculated as:
Cost of Practitioner Rate = [$87,500] / [$192,000] x 100 = 46%
Note: This does not include costs for training, mentoring, Continuing Professional Development (CPD) courses or workshops that are invested into practitioners.