How Much Does A Non-Medical Home Care Business Make?

If you are evaluating the economics of a non-medical home care business, the most useful way to think about earnings is by client hours, rate per hour, caregiver wage, and operational efficiency. With a solid payer mix and tight scheduling, mature agencies often achieve net margins in the 10 to 20 percent range. Early agencies can expect lower net margins while building volume, establishing robust referral relationships and stabilizing caregiver supply.

Below, we break down typical revenue, costs, and realistic profit for a home care business, plus how modern home care software and AI technology in home care can push performance higher.

Revenue drivers 

Non-medical home care revenue is primarily driven by billable hours. Most agencies bill hourly, with local rates commonly between 28 and 35 dollars per hour, depending on market, case complexity, and service mix. A strong average weekly hours per client increases the throughput of revenue without increasing marketing costs for each new admission.

Two quick scenarios illustrate the math:

New agency example

8 clients at 12 hours per week each, billed at 30 dollars per hour translates to a monthly revenue of about 12,470 dollars. This assumes roughly 4.33 weeks per month. Using caregiver wages at 18 dollars per hour yields a gross margin around 40 percent, or about 4,988 dollars in gross profit per month. With operating expenses of 22 percent of revenue, net profit would be about 2,245 dollars per month, or 26,936 dollars per year.

Mature agency example

40 clients at 20 hours per week each, billed at 32 dollars per hour translates to a monthly revenue of about 110,848 dollars. With a caregiver wage around 20 dollars, gross margin is about 37.5 percent, or roughly 41,568 dollars. Assuming operating expenses at 20 percent of revenue, net profit lands around 19,398 dollars per month, or 232,781 dollars per year.

These figures are illustrative. Actual performance depends on case mix, schedule adherence, market rates, caregiver turnover, and back office efficiency.

Cost structure and margins 

Most agencies manage three big categories of cost:

• Care delivery: The largest expense. This is the hourly wage plus taxes and benefits. The spread between bill rate and wage is your gross margin. Many agencies target gross margins of 35 to 45 percent.

• Operating expenses: Marketing, intake, scheduling, recruiting, training, supervision, and administrative overhead. Efficient home care marketing lowers client acquisition costs, while reliable intake and scheduling reduce overhead.

• Compliance and tools: Insurance, licensing, and home care software. The right systems prevent errors, accelerate intake, and reduce time spent on documentation.

A healthy gross margin combined with disciplined operating expenses yields double digit net margins. For a home care business at scale, 10 to 20 percent net margin is common, with top performers occasionally exceeding that through tight scheduling and low turnover. See here for more on "Why is home care so expensive?".

How to move from average to top quartile 

Earnings are not just about rates. Your operations determine how much revenue you keep.

• Increase average weekly hours: Turn one time inquiries into consistent blocks. A well run intake process highlights needs, documents risks, and builds appropriate care plans that encourage steady hours, which improves both outcomes and revenue stability.

• Reduce missed shifts and overtime: Strong scheduling discipline and proactive communication limit costly last minute coverage and prevent excess overtime.

• Shorten intake cycle time: Every extra day between inquiry and start of care risks losing the client to a competitor. Agencies using AI technology in home care to compress intake timelines convert more leads and stabilize census earlier.

• Standardize care plans and follow ups: Draft care plans from call data and align them with caregiver capabilities before the first visit. Faster alignment reduces churn during the first month.

• Lower cost per acquired client: Targeted home care marketing, community partnerships, and referral programs that you can track and optimize reduce acquisition costs over time.

Where Sage fits in 

Intake is one of the highest leverage workflows in a home care business. It is complex, repetitive, and time sensitive. Sage is an AI native, HIPAA compliant tool that automates the busywork of client intake so operators can focus on care and connection rather than paperwork. By removing manual steps, you raise conversion and protect margin.

Sage handles the intake busywork end to end:

• Automates call recording, transcription, and summarization so you never take notes on a call again. Your team gets clean, structured context for every prospect without retyping.

• Generates instant follow ups, giving you personalized drafts ready to send before you hang up. Faster responses win more starts and increase average weekly hours.

• Populates draft care plans based on call data. You move from inquiry to a ready to review plan seamlessly, which shortens time to start of care.

• Syncs directly with your existing agency management system. No double entry. No lost details. Intake data flows into scheduling and care management in one motion.

When agencies save up to 100 minutes per prospective client, two things happen. First, your team works more leads with the same staff, lowering cost per acquisition. Second, you start care faster and with better context, which increases conversion rate and improves retention. That is real margin protection.

The earnings takeaway 

• Early stage agencies may net a few thousand dollars per month while establishing channels for client acquisition, stabilizing caregiver supply and refining scheduling.

• Mature agencies commonly net in the high teens as a percentage of revenue, with absolute dollars driven by census and hours per client.

• The largest drivers of profit are operational. Faster intake, better documentation, and tighter communication flow are worth more than small changes in hourly rates.

Building a durable home care business is about turning every inquiry into a consistent care relationship. Modern home care software makes that possible by automating the repetitive work, surfacing the right information at the right time, and closing the gap between interest and start of care. If you are investing in growth this year, optimizing intake should be first on your list.

To see how Sage can help your agency earn more with less administrative burden, schedule a demo today and learn more about how Sage can help you grow your business.