Dentist Advisor Match

Dental Practice Overhead Calculator

Enter your practice collections and expense categories below. The calculator will show your overhead percentage per category and compare each line item to ADA Health Policy Institute benchmarks1 for general dental practices. Use this to identify which categories are driving your overhead above the healthy range — and what that costs you at practice sale.

How to read your overhead %: Enter expenses excluding your own compensation — this matches the standard ADA benchmark methodology. If you include your W-2 salary as an expense, subtract it before entering. The healthy overhead range (excl. doc comp) is 59–65%; top-performing practices hit 55–60%.1

Enter your numbers

Total amount collected (not production). Leave blank if entering monthly below.
Wages, payroll taxes, benefits for all non-doctor employees
Crown, bridge, implant, Invisalign lab costs
Consumable clinical supplies (not equipment)
Lease payments or mortgage P&I on office space
Maintenance contracts, technology subscriptions, lease payments on equipment
Digital ads, SEO, direct mail, patient communication platforms
Office supplies, software, professional fees, accounting, miscellaneous
Equipment repairs, facility maintenance (not scheduled replacement)
Malpractice, property, general liability, workers' comp
Category Your Amount Your % ADA Benchmark Status

What moves the number beyond cost-cutting

Practice management consultants focus on reducing line-item expenses. That's necessary — but the largest overhead improvements for high-income practice owners often come from financial planning decisions that most consultants never touch:

  • Entity structure (S-corp election): Reducing self-employment tax on distributions can save $10,000–$20,000 per year at typical dental income levels — money that doesn't show up in the overhead ratio but directly increases what you keep.
  • Retirement plan stacking: A solo 401(k) + cash balance plan can shelter $100,000–$290,000+ per year pre-tax. At a 37% marginal rate, every $100,000 sheltered is $37,000 that doesn't go to taxes.
  • Equipment timing vs. your exit plan: Buying equipment in the wrong year relative to a practice sale can reduce the EBITDA buyers use to calculate your price — a $50,000 equipment purchase can cost $150,000–$250,000 in sale proceeds if the timing is wrong.
  • Real estate: If your facility cost is above 8%, owning your building through a holding LLC redirects the same "expense" back to you as equity and rental income.

Related tools and guides

Talk to an advisor about your overhead numbers

A fee-only financial advisor who works with dental practice owners can model the entity structure, retirement plan, and equipment timing decisions around your specific overhead situation. No product sales, no cookie-cutter plans.

Sources

  1. American Dental Association Health Policy Institute — Dental Practice Research: overhead benchmarks by category (staff 25–30%, lab 7–10%, supplies 5–7%, facility 5–9%, total excl. doc comp 59–67%) from ADA HPI annual economic survey of dental practices.
  2. IRS Notice 2025-67 — 2026 retirement plan contribution limits: employee deferral $24,500; combined §415(c) limit $72,000; employer profit-sharing up to 25% of W-2 compensation.
  3. PKF O'Connor Davies — Four Surprising Reasons Why a Dental Practice's Overhead May Be Out of Control: CPA analysis of overhead categories and cost management strategies.
  4. FOCUS Investment Banking — Dental Practice M&A Benchmarks: EBITDA multiples used by dental buyers, 2026. General dentistry 3–5×; DSO platforms 5–8×. Practice sale value calculation methodology.

Benchmark ranges reflect ADA Health Policy Institute survey data for general dental practices, 2025–2026. Specialty practices (oral surgery, orthodontics, periodontics) carry different expense profiles — lab fees are lower for surgical specialties; malpractice is higher. Retirement plan limits verified against IRS Notice 2025-67.