# Dental practice overhead calculator

> Estimate dental practice overhead percentage, pre-owner-pay margin, and the dollar gap to a target overhead level.

URL: https://dentovio.com/tools/dental-practice-overhead-calculator

Last verified: 2026-07-11

Planning estimate only; not accounting, tax, valuation, lending, legal, or financial advice. Owner compensation, income tax, and distributions should stay outside the operating-expense lines unless your advisor tells you otherwise.

## Direct answer

- Formula: operating expenses / annual collections x 100 = overhead percentage.
- Default example: $900,000 in collections and $558,000 in operating expenses equals 62% overhead.
- At a 59% target, the default example is $27,000 above target before owner pay, income tax, and distributions.
- One overhead point is worth $9,000 at the default collection level.

## Inputs

- Annual collections
- Staff payroll and benefits
- Facility, rent, utilities, and insurance
- Lab fees
- Dental and office supplies
- Marketing and patient acquisition
- Software, admin, and subscriptions
- Equipment, repairs, and debt service
- Other operating expenses
- Target overhead percentage

## Source basis

- `ADA-PRACTICE-EXPENSES-2022` ADA News: Practical strategies to reduce dental practice expenses. ADA News expense-management piece citing 4-7% fixed expense, 45-55% variable cost, 62% average overhead, and a 59% general-practice target reference. <https://adanews.ada.org/new-dentist/2022/march/ask-the-expert-practical-strategies-to-reduce-dental-practice-expenses/>
- `ADA-HPI-DENTAL-PRACTICE-RESEARCH` ADA Health Policy Institute dental practice research. ADA HPI page for dental practice structure, income, reimbursement, billings, and expense research including the Survey of Dental Practice. <https://www.ada.org/resources/research/health-policy-institute/dental-practice-research>

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