EBITDA margin · profitability

Dental Practice EBITDA Calculator

Calculate EBITDA margin for your dental practice and compare against industry benchmarks.

EBITDA margin is the primary profitability metric buyers and lenders use to evaluate dental practices. This calculator breaks down your expense structure and compares your margin to industry medians.

  • EBITDA = Collections − Clinical Payroll − Supplies − Admin − Facility − Other
  • Healthy general dentistry EBITDA: 22–26%
  • Median practice EBITDA margin: ~24%

Built for practice owners benchmarking profitability, buyers in due diligence, and operators evaluating overhead reduction.

Source: BizMetricsHQ 310+ dental practices (2025–2026). Methodology

Practice Expenses

EBITDA Margin

36.3%

EBITDA: $654,000

+12.3% vs industry median · strong

Clinical Payroll30.0%
Dental Supplies5.0%
Admin Payroll10.0%
Facility & Rent6.7%
Other Overhead12.0%

Expense Benchmarks

  • Clinical Payroll

    28–32%

  • Dental Supplies

    5–7%

  • Admin Payroll

    9–12%

  • Facility & Overhead

    18–24%

Frequently Asked Questions

What is a good EBITDA margin for a dental practice?

Healthy general dentistry practices operate at 22–26% EBITDA margin. The industry median is ~24%. Practices below 18% typically have overhead issues; above 30% may indicate underinvestment in staff or equipment.

How do you calculate EBITDA for a dental practice?

EBITDA = Collections minus operating expenses (clinical payroll, supplies, admin, facility, marketing, and other overhead) before interest, taxes, depreciation, and amortization. Owner doctor compensation is typically included in clinical payroll for associate-model practices.

What expenses are included in dental practice EBITDA?

Clinical payroll (hygienists, assistants, associates), dental supplies, admin staff, facility rent, insurance, marketing, lab fees, and general overhead. Excluded: owner compensation above market rate, debt service, depreciation, and one-time capital expenditures.

Why do buyers focus on EBITDA for dental practices?

EBITDA normalizes profitability across different capital structures and tax strategies. Buyers apply EBITDA multiples (4.0×–6.5×) or convert to SDE for smaller owner-operator practices. Higher EBITDA margin directly increases practice value.