Dental Practice Valuation Calculator
Enter your practice financials and get an instant valuation range using three industry-standard methods: capitalization of earnings, percent-of-collections, and asset-based floor. See your blended enterprise value estimate in seconds.
Enter Your Practice Financials
Total cash actually collected from patients and insurers over the past 12 months. Use your practice management software production/collection report.
Use your CPA's adjusted figure. Add back non-recurring expenses (one-time repairs, legal fees) and normalize owner compensation to a market-rate associate salary before entering this number.
Specialty practices (ortho, oral surgery) command higher multiples due to higher average case values and more defensible referral networks.
Practices with more than 70% PPO participation typically receive a lower valuation multiple due to reduced fee-schedule autonomy and higher sensitivity to insurance repricing.
Used as a secondary sanity check. A GP with 1,000–2,000 active patients and $1M+ in collections is generally well-positioned. Very low active-patient counts relative to collections can signal concentration risk.
ZIP code is collected for a planned regional market adjustment feature. It does not affect the current calculation.
Disclaimer: This tool provides a preliminary valuation estimate based on publicly available dental industry multiples and standard appraisal conventions. It is not a formal business appraisal, broker opinion of value, or offer to buy or sell. Actual transaction value depends on location, lease terms, staff quality, equipment condition, and buyer/seller negotiation. Consult a dental practice broker or certified valuation analyst before making any transaction decisions.
Your Valuation Estimate
Enter your practice financials and click Calculate Practice Value to see your estimated valuation ranges.
How to Use This Dental Practice Valuation Calculator
Enter your annual collections, your EBITDA or SDE (seller's discretionary earnings), the practice type, your PPO mix, and how long the seller will stay post-close. The calculator returns three valuation ranges — low, mid, and high — for each of the three standard appraisal methods, plus a blended enterprise value estimate.
The Three Standard Dental Practice Valuation Methods
Most dental practice transactions are valued using one or more of the following approaches. Understanding each one helps you negotiate from a position of knowledge.
1. Capitalization of Earnings (EBITDA Multiple)
The most common method for mid-to-large practices. A market-derived multiple is applied to the practice's adjusted EBITDA (or SDE). Multiples vary by specialty, payer mix, and market conditions. General practices typically trade between 1.2× and 2.0× EBITDA; orthodontic practices can reach 3.0× or higher due to predictable revenue and high case values.
2. Percent-of-Collections
A quick rule-of-thumb widely used by dental brokers and buyers. Most practices sell for 60–75% of trailing-12-month gross collections, with a midpoint near 67%. This method is useful as a cross-check against the earnings multiple but can overvalue high-revenue, low-margin practices and undervalue lean, highly profitable ones.
3. Asset-Based (Floor Valuation)
Estimates the minimum a buyer would pay to acquire the physical assets of the practice: dental equipment and fixtures (FF&E) plus goodwill expressed as a percentage of collections. This is typically the lowest of the three methods and serves as a valuation floor — rarely used as the sole basis for a transaction but important if profitability is low.
What Affects the Final Sale Price?
- Payer mix: High PPO concentration (above 70%) compresses multiples due to lower fee-schedule autonomy.
- Seller transition: A seller who stays 12+ months reduces patient attrition risk and increases buyer confidence, supporting a higher multiple.
- Lease quality: A long-term, assignable lease at market rent is a positive factor; a short or unassignable lease can reduce value significantly.
- Staff tenure: Long-tenured clinical staff and a hygiene recall base are key goodwill drivers.
- Equipment age: Practices with modern digital X-ray, CBCT, and CAD/CAM can command slight premiums; older analog setups require buyer capex.
- Specialty referral strength: For specialty practices, a well-established referral network is a material value driver.