Practice Ownership

Dental Practice Valuation Calculator

Estimate a dental practice's value with the percent-of-collections and EBITDA-multiple methods.

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Uses 2026 figures

Your results will appear here.
Adjust the numbers, then press Calculate.

Assumptions

Adjusted EBITDA = collections − overhead (excluding owner pay) − market-rate pay for the owner's dentistry.
A rough estimate only. Formal valuations also weigh location, payer mix, equipment, lease terms and patient base.

Whether you're buying, selling, bringing in a partner or just planning, it helps to know roughly what a dental practice is worth. Professional appraisals use several methods, but two quick estimates get you close: a percentage of yearly collections, and a multiple of adjusted profit (EBITDA). This calculator runs both and shows where they agree or disagree.

What this calculator does

Enter annual collections, overhead (not counting the owner dentist's pay), a market-rate pay for the owner's dentistry, and the multiples to use. The calculator shows:

an estimated value, the average of both methods,
the percent-of-collections value,
the EBITDA-multiple value,
adjusted EBITDA, and
the EBITDA margin, adjusted EBITDA as a share of collections.

The formula in plain English

Percent-of-collections value = annual collections × your multiple (for example, 70%).

Adjusted EBITDA = collections − overhead (excluding owner pay) − market-rate pay for the owner's dentistry.

The market-rate pay is what you'd pay an associate to do the owner's clinical work, often about 30% of the owner's collections. Subtracting it separates the value of the business from the value of the owner's labor.

EBITDA value = adjusted EBITDA × your multiple (for example, 5×).

Estimated value = the average of the two.

If adjusted EBITDA is zero or negative, the EBITDA method gives no value. The practice may still sell for something, but mostly for its patients and equipment.

A worked example

Dr. Lewis's practice collects $1.2 million a year. Overhead, not counting his own pay, is 55% of collections. A fair associate salary for his dentistry would be 30% of collections.

Adjusted EBITDA: $1,200,000 × (100% − 55% − 30%) = $180,000.
EBITDA margin: 15%.
Percent-of-collections value at 70%: $840,000.
EBITDA value at 5×: $900,000.
Estimated value: about $870,000.

The two methods agree within about 7%, which suggests a healthy, typical practice. If overhead were 65%, EBITDA would fall to $60,000 and the EBITDA value to $300,000, while the collections value would stay at $840,000. That's the kind of gap that leads buyers to offer far less than a seller expects.

Why it matters at each career stage

If you're: Employed

If you're thinking of buying a practice, use this to sanity-check asking prices. Ask the seller for three years of profit and loss statements and calculate adjusted EBITDA yourself. A price that only makes sense on the collections method deserves a closer look.

If you're: Practice owner

Run this every year, even if you aren't selling. Improving your margin by a few points can raise your practice's value by much more than the extra profit itself. It's also the starting point for buy-in conversations and DSO offers.

What moves value up or down

Profit, not just revenue. Buyers pay for cash flow. Lowering overhead is often the fastest way to raise value.

Transferability. A practice where patients are loyal to the office, the hygienists and the systems, not just the owner, is worth more.

Hygiene. A full, well-run hygiene schedule is predictable revenue and a source of restorative work.

The lease. A long, assignable lease at fair rent protects the buyer. A short or non-transferable lease lowers value.

Equipment and technology. Old equipment that needs replacing soon is a cost the buyer will subtract.

Payer mix. Heavy dependence on low-paying PPOs reduces margins and value.

Using these estimates

Treat this as a range, not a price. Real transactions also adjust for accounts receivable, equipment condition, real estate and deal terms like seller financing or a transition period. When you're ready to act, a dental-specific appraiser and transition attorney are worth the cost.

Next, see whether the price works with the dental practice acquisition calculator, compare a DSO sale with staying independent, or plan a buy-in.

FAQ

Frequently asked questions

What percent of collections do dental practices sell for?

Private general practices often sell for roughly 60%–85% of a year's collections, depending on profit, location, equipment and patient base. Specialty practices and DSO buyers can be quite different.

What is adjusted EBITDA?

Earnings before interest, taxes, depreciation and amortization, adjusted so the owner's dentistry is paid at a market rate and one-time or personal expenses are removed. It shows what the business earns for an owner who isn't also the dentist.

Why do the two methods give different answers?

The collections method ignores costs. Two practices with the same collections can have very different profits. Lenders and DSOs focus on profit, so the EBITDA method usually carries more weight for high- or low-margin practices.

Do I need a professional valuation?

For a sale, buy-in, partnership or loan, yes. A dental-specific appraiser looks at years of financial statements, patient counts, payer mix, equipment, the lease and local demand.

What raises a practice's value?

Steady or growing collections, healthy margins, a strong hygiene program, a long and transferable lease, modern equipment, good staff who plan to stay, and a patient base that isn't tied to one doctor.

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