Dental practice profit calculator
Annual revenue in, costs out — see your true profit and margin.
Practice profit is what the business earns after every cost is paid, including a market-rate wage for the clinical work you do yourself. Add up staff, lab, supplies, rent and other overheads, subtract them from collections to get earnings before owner's pay, then subtract what you would have to pay a dentist to do your chair time. In most markets a general practice runs at 55–65% overhead, which leaves a true profit margin of roughly 10–20% once the principal's clinical pay is taken out. If that margin is near zero, the practice is a job, not a business.
How this is calculated
- Overheads = staff + lab + supplies + rent + other.
- EBITDA = revenue − overheads.
- True profit = EBITDA − what you'd pay a dentist to do your clinical work.
- Separating owner's pay from profit shows what the business itself earns.
Frequently asked questions
What is a healthy overhead percentage for a dental practice?
Roughly 55–65% of collections is common for general practice in most markets. Above 70% usually means one of staff, lab or rent is out of line, and the Practice Overhead Calculator will show which. Specialist practices sit outside these ranges because their cost mix is different.
Why subtract my own clinical pay before calling it profit?
Because a buyer, a bank or a valuer will. If the only reason the practice shows a surplus is that you work for less than an associate would cost, the business itself is not making money. Separating the two also tells you whether adding an associate would actually improve your position.
What figure should I use for my own clinical pay?
Use what you would pay an associate to produce the same collections, typically 30–40% of the collections you personally generate. If you also spend unpaid hours on management, add a modest allowance for that too. The aim is a fair replacement cost, not your drawings.
What data do I need from my practice software and accounts?
Collections for the year come from your practice management software. Wages, lab, supplies, rent and other overheads come from your accounting file or your accountant's profit and loss statement. Use the same twelve-month period for both so the margin is honest.
How often should I measure practice profit?
Do the full calculation once a year with final accounts, and a lighter version quarterly using management figures. Quarterly is often enough to catch overhead creep before it eats a year of margin.
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Benchmarks are indicative for general practice in most markets. Last updated 18 Sept 2026. See our methodology.