Licensed Professional Counselor Expenses
(Independent Contractor)
Bachelor’s Degree
$20,000 - $60,000+ (plus student loan interest)
Master’s Degree
$40,000 - $70,000+ (plus student loan interest)
Supervision (several years of required supervision to obtain full licensure)
$9,000+
Liability Insurance
$360+ per year
Ethical and Legal Consultation
$500 - $1,500 per year
Continuing Education (required to maintain licensure)
$500 - $2,000+ per year
Licensure, Credentials, & Renewal Fees
$200+ (plus ongoing renewal fees)
Certifications / Specialty Training
$1,000 - $5,000+ per training
Professional Memberships
$300+ per year
Insurance Paneling / Enrollment Fees (if accepting insurance)
$250+ per insurance provider
Medical Biller (if accepting insurance)
$6,000+ per year
Business Start-Up Costs
(e.g., legal setup, software systems, secure technology, website, and initial professional services)
$10,000 - $25,000+
Annual Business Expenses
$3,000 - $20,000+ per year
(depends on practice model and whether working independently or under a clinical director)
Unpredictable and Inconsistent Income
Therapists are paid per session, not salaried or hourly. Income fluctuates due to cancellations, holidays, illness, seasonal demand, client schedules, and online visibility.
No Employer-Provided Benefits
No health insurance, paid sick time, paid time off, holidays, retirement contributions (401k), or employer-paid taxes.
Physical, Mental, Emotional, and Ethical Limits
Providing ethical care requires limits on caseload size. Taking on too many clients in order to increase income isn’t healthy or ethical, which naturally limits how much a therapist can earn.
Taxes
Combined taxes often exceed 20 - 30% of gross income before business expenses are deducted.
Licensed Professional Counselor Income
(Independent Contractor)
If working under a clinical director:
The typical split is approximately 60/40, meaning the therapist receives about 60% of what the client or insurance company pays.
If working independently in private practice:
The therapist receives the full self-pay or insurance rate, with business expenses and taxes paid separately.
The figures above are general estimates and vary based on training path, location, and practice model.