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Dental Overhead Calculator

Calculate dental practice overhead as a percentage of collections, review entered expense categories, and see the operating remainder.

Enter your numbers

Estimated result

Total overhead

66.8%

Total operating expenses

$935,000

Collections after entered expenses

$465,000

This tool does not classify expenses for tax or accounting purposes. Compare the categories with your practice's financial statements and advisor.

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Using the estimate

What this tool can tell you

The dental overhead calculator divides the operating expenses entered by annual collections. It also shows total expenses and the amount of collections left after those expenses. The remainder is not automatically owner income or profit because debt payments, taxes, capital purchases, and owner compensation may be classified elsewhere.

Step-by-step guide

Turn the percentage into a useful review

Step 1

Reconcile to financial statements

Enter categories from a consistent profit-and-loss statement or management report. The calculator's categories are broad and do not replace the practice's chart of accounts.

Step 2

Check the arithmetic

A practice with $935,000 in entered operating expenses and $1,400,000 in collections has calculated overhead of about 66.8%. The displayed remainder is $465,000 before omitted items.

Step 3

Compare like with like

When reviewing another month, year, location, or industry reference, use the same expense definitions. Investigate category-level changes instead of relying on one total percentage.

Common questions

Questions about this tool

What is a healthy dental practice overhead percentage?
There is no single percentage that establishes a healthy practice. Specialty, staffing, facility costs, laboratory use, technology, owner compensation, accounting method, and service mix can materially change the calculation.
Should dentist compensation be included in overhead?
That depends on the purpose of the analysis and the practice's accounting method. Keep owner clinical compensation, ownership distributions, and associate wages separately identified so comparisons use consistent definitions.
Should overhead use production or collections?
This calculator uses collections because expenses are paid from collected revenue. Production and collections measure different activity; the production goal calculator uses a collection-rate assumption to connect them.