How much does it cost to open a private therapy practice?
This is one of the most common questions I receive as a private practice business coach. And I am excited to say that the truth is, launching a private practice costs less than you might think especially if you're considering a cash-pay therapy practice, sliding scale therapy fees, or starting out with a solo therapy practice.
Whether you're building private practice services virtually or in-person, your upfront investment can remain low with the right planning.
In fact, you’ve already made the biggest investment in your private practice, your education, and clinical training. That foundation sets the stage for a sustainable and successful therapy practice, whether you're planning an out-of-network therapy practice or growing into a future group therapy practice.
Your education is your largest private practice startup cost.
Regardless of whether you’re a counselor, psychologist, social worker, marriage & family therapist, or a mental health clinician, your degree, licensure, and training are the foundation of your solo therapy practice. It’s easy to get overwhelmed when thinking about starting your own therapy practice. You can open a private practice with low startup costs. Many therapists launching a private practice feel torn between affordability and professionalism, but low startup costs make it possible to do both.
The only exception to this notion would be those who need to purchase testing materials for a psychological assessment-based practice. Unfortunately, this handout doesn’t include guidance for psychological assessment startup costs. The secret to having a financially stable private practice is planning and budgeting.
Private Practice Start-Up Costs
An Office: Remember, you don’t have to lease a full-time office. You can start by renting an office by the hour, subletting a few days per week, or providing teletherapy services. In my experience, you can get away with only paying about $100/month by subletting an office for a few hours per week, when you’re starting out in private practice. If you are starting a virtual private practice your rent will be $0.
Business License Fees: Your need for a business license will depend on the city where your practice is located. The average cost of a business license is typically under $150.
Malpractice Insurance: YOU MUST have malpractice insurance. Regardless of the size of your private practice. Before you see a single client, make sure you get liability insurance. This will likely cost you between $300-500 per year. Read more about acquiring malpractice insurance here.
Simple Practice Subscription: Between $50-100/month depending on the level of service you select.
Business Phone Number: In my course, I recommend getting a business phone that is separate from your personal one. There are also free services available. Whether you're marketing for therapists online or locally, having a dedicated business number builds credibility.
HIPAA Compliant email account: Should be around $50-100 per year.
DIY Website or Website Design – This can range in cost greatly. You can spend thousands on a custom-built site or build a template site on Squarespace or WordPress for just $30-ish a month.
Website hosting fee: Usually around $5 per month.
Therapist-Approved Marketing Strategies
I often get asked, How do I start getting clients? You can have the best tools, the cleanest office, and a beautiful website, but without a clear marketing strategy for therapists, you won’t have anyone to serve.
Here are a few therapist-approved marketing strategies to consider when building your private practice:
List your services on reputable directories
Network with schools, pediatricians, and other providers
Create content for your blog to improve online marketing for therapists
Focus on a niche, like success in teen therapy or couples work, to attract the right audience
Use social media and email lists to promote your cash-pay therapy practice
Offer introductory consultations to build rapport
And don’t forget about your therapy fees. Set clear, consistent pricing from the beginning, whether you're offering private pay therapy, sliding scale therapy, or accepting insurance.
This clarity supports both your boundaries and your clients.
Tools for Therapists That Make Private Practice Easier
Managing a therapy office requires more than just good clinical skills. You'll need private practice tools for therapists that streamline administrative tasks and reduce stress. Consider:
Secure scheduling software
EHR platforms like Simple Practice or TherapyNotes
Telehealth platforms with HIPAA compliance
Digital intake forms
Financial planning spreadsheets
These tools are vital in keeping your private therapy practice organized, efficient, and legally compliant.
These tools not only save time but also help you focus on what matters most: your clients.
Growing Your Therapy Business
Once your foundation is set, it’s time to grow your private practice. This doesn’t have to mean scaling into a group therapy practice; it could simply mean seeing more clients, increasing your fees, or offering workshops. It’s about aligning your career with your lifestyle.
If you're offering out-of-network therapy, make sure your clients understand how to submit superbills for reimbursement, as it adds value to your services.
If you're thinking about going out-of-network, it can be a game-changer for your income and flexibility. Many clinicians find success in building an out-of-network therapy practice that offers high-quality care while avoiding the administrative burden of insurance.
If you’re ready to take the leap, my advice is this: start small, stay organized, and seek support.
There's no one-size-fits-all model. Whether you're a new grad or a seasoned clinician, starting a therapy practice is an achievable and empowering goal.
Click here to download my Private Practice Start-Up Cost Worksheet!
This article was written by Kelley Stevens, LMFT. Kelley is a private practice business coach for therapists. Kelley specializes in helping therapists launch a cash-pay private practice from the ground up.