How Much Does A Dental Practice Cost

How Much Does A Dental Practice Cost

How Much Does A Dental Practice Cost – According to Cloud Dentistry, the average dentist working in a dental office makes an annual salary of about $170,000; while the average dentist who owns their own practice earns an average of $175,000. So if you’re a dentist in another practice, you’re probably wondering if it’s worth just working as an employee or if you should try to start your own practice?

With this information, it’s clear that a $5,000 annual salary increase is not worth the risk of starting your own dental practice, so why should you consider starting your own dental practice?

How Much Does A Dental Practice Cost

How Much Does A Dental Practice Cost

With your own dental practice, you can build an asset that has value and can be sold in the future. The value is not in the salary you can earn year after year, but in the value you build and recognize when you sell the service in the future.

Dental Treatment Prices, Our Dental Plan & Dental Finance

While a general practitioner earns an average of $170,000 per year, you may be curious about some of the other dental specialties.

Keep reading to learn about the financial details of starting your own dental practice. While we can make general estimates of how much the average dental practice owner can earn, the income your dental practice may generate depends on a number of factors, including the number of dentists, location, your ability to acquire patients in a cost-effective manner, and more.

We developed a dental financing model that allows you to make your own assumptions about your practice and create a forecast for your dental office. You can watch the model demo video below and continue reading to learn more about startup costs, dental office revenue, profit margins, and more.

According to Dental Economics, the rough starting point for valuing a dental practice is 70-85% of the previous year’s turnover. So, for example, a practice that generated $1,000,000 in revenue the previous year could be worth about $700,000 at the low end.

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Let’s say it took you 7 years to build your practice to a $700,000 valuation, and you would have built an average of $100,000 per year. So even though you may have been paid the same as other employee dentists, you should consider the $100,000 in value you created that will be recognized in the future if you sell your practice.

Based on this logic, it seems clear that having your own dentist’s office has a much greater advantage and may be worth pursuing.

If you decide to purchase an existing practice, ADA Practice Transitions has a marketplace of dentists for sale. Remember that when you buy a practice, you are paying for the value someone else has created, so it is harder to add value to the practice beyond what you can pay yourself in salary. A few key steps if you decide to buy a dentist are:

How Much Does A Dental Practice Cost

The Small Business Administration (SBA) offers great financing options for getting a dental practice. There are several SBA lenders willing to do dental practice loans, such as Bank of America’s Dental Practice Financing Program.

Labs And Supply Costs

When considering acquiring or starting a new practice, you can run the numbers both ways and determine what you think is best for your situation. With the help of our financial model for the acquisition, you can enter the historical income and expenses of the practice to be acquired, build your own growth assumptions and predict the possible income in connection with the acquisition of the dental practice.

One of the big advantages of acquiring an existing practice is that you have removed the business risks by acquiring a practice that already has a patient base. When you start a new practice, there’s no guarantee that you’ll be able to acquire new patients in a cost-effective way, but let’s go ahead and dive deeper into starting your own practice.

If you decide you’d rather build your own practice from scratch, some important steps to start a dental practice include:

We believe that you should create a set of startup dental financial projections to fully understand what it takes to start and grow a successful dental practice. Projections can help you answer a number of questions about your startup costs, expected operating costs, potential revenue, and ultimately what it takes to be profitable and profitable.

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I’ll help you answer these most important questions in your business plan using our startup dentist financial forecast template.

Of course, the cost of setting up a dental office can vary depending on your location, size, and whether you’re buying a building, building a new office, or renting a ready-to-move-in office. In addition, do you buy or rent your dental equipment? Based on three different sources (DentistryIQ, DentrixAscend, Amplify), you can expect the following starting costs for your dentist:

In this 4 minute video, I show you how to add your dental startup costs to our financing model.

How Much Does A Dental Practice Cost

The amount of income a single dentist can generate depends on the location, the number of hours you are willing to work, the success of your marketing plan, and the support staff around you to help maximize your potential income.

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If we take 3,500 patients X an average of $290 per visit, we can estimate that one dentist can generate up to $1,015,000 per year.

So we can see that the math checks out the potential income. We also wanted to collect some income figures from several sources.

Based on three different sources (Cloud Dentistry, Spear Education, Statista), you can expect the following income from your dental practice:

The purchase price of the goods sold to the dentist’s office includes the direct materials used to produce dental care services and the direct labor needed to provide dental services. Our template allows you to enter material costs for each service you offer. In this video I show you how to calculate the cost of products sold to a dental office.

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In addition to these general operating costs, you should also consider your salary costs based on your dentist’s personnel plan.

In this video, I show you how to project your dental practice’s operating expenses and salaries into your financial projections.

We were able to calculate this by looking at three sources for the typical profit margin for a dentist, and the average profit margin for a dental office was 37.5%, as shown below:

How Much Does A Dental Practice Cost

Then calculated an average revenue per dental office of $941,600 x 37.5% profit margin and calculated an average potential profit of $353,100.

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Finally we succeeded! So when we think back to the beginning of this post where the average dentist salary was $170,000 per year, we can now see that the benefit of owning your own dentist office is clear. Whether you want to acquire a practice or start a new operation, let us know how we can help you develop a financial model for your unique situation.

The model is easy to use and saves a lot of time and at the same time produces professional looking projections of the Dental Clinic. has helped over 50,000 companies prepare financial forecasts, so you can be sure you can do it too.

The template is easy to use and you don’t need to be an Excel wizard to fill it out. Editable cells are highlighted in blue, a video tutorial is included, and our team is ready to answer any questions you may have.

If you have any questions before purchasing, start live chat or email us at support@

Easy Dental Cost/profit Sheet

Adam is the co-founder of a SaaS web application that helps entrepreneurs create financial forecasts for their business. Since 2012, more than 40,000 entrepreneurs around the world have helped create financial forecasts. Adam also serves as Bankable’s Executive Director. Bankable is a Small Business Administration (SBA) lender that provides loans from $500,000 to $250,000 to Indiana small businesses that cannot get financing from a traditional bank.

In this article, we’ll go over how to finance a small business acquisition and answer some key questions about financing options.

Many people don’t realize that owning a business can be a great way to become a business owner if they don’t want to start from scratch. But the acquisition process can be a bit daunting, so here’s a guide to help you through it!

How Much Does A Dental Practice Cost

Learn the rare scenarios that make it possible to buy a business with no money down, and delve into the complexities of selling through seller’s notes, highlighting the balance of expanded opportunities and inherent risks in these unique financing transactions. If you are going to open a dental practice, you need

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