Dental Practice Net Proceeds Calculator

The sale price is not what you take home. Between capital gains taxes, broker commissions, outstanding debt, legal fees, and transition costs, the gap between your headline number and your actual bank deposit can be six figures — sometimes seven. The Net Proceeds Calculator shows the real number.

What Actually Comes Out of Your Sale Price

Broker commissions typically run 8% to 12% of sale price. On a $1.2M practice that's $96K to $144K off the top. Listing on SellPracticeNow keeps this money in your pocket, but if you've already signed with a broker, it's coming out regardless.

Capital gains taxes hit goodwill (usually the largest allocation in a dental practice sale) at federal long-term rates — 20% for most selling dentists, plus the 3.8% net investment income tax for higher earners. Equipment and certain other assets are taxed as ordinary income via depreciation recapture, which can reach 37% federal.

State taxes add another layer. New Jersey, New York, California, and Oregon sellers lose another 6% to 13% depending on bracket. Florida, Texas, and Tennessee sellers pay zero state income tax. Your state alone can swing your net by $100K+ on a $1M sale.

Outstanding practice debt gets paid off at closing before you see proceeds. Equipment loans, working capital lines, any remaining SBA balance. Legal and accounting runs $15K to $40K depending on complexity. Staff retention bonuses, patient notification, post-sale consulting obligations come out of your pocket, not the buyer's.

Why This Matters Before You List

Knowing your net number changes everything. It tells you your walk-away price — the lowest offer you can accept and still hit your retirement or next-chapter goals. It tells you whether a DSO offer with a lower headline and better tax structure actually nets more than a higher-headline private offer. It tells you when to wait a year, relocate to a no-tax state, or renegotiate the asset allocation in the purchase agreement.

Without this math, you're negotiating in the dark and letting the buyer's CPA run the deal.

Frequently Asked Questions

What's the biggest miss sellers make?

Asset allocation. The purchase agreement assigns values to goodwill, equipment, real estate, and non-compete — each category is taxed differently. Sellers who don't push on allocation leave $50K to $200K on the table routinely.

How accurate is the calculator's tax estimate?

It uses current federal and state rates. It assumes standard asset allocation and doesn't account for complex situations like S-corp vs. C-corp structure, installment sales, or opportunity zone reinvestment. For those, your CPA will sharpen the number — but this gets you to a realistic range.

Does this account for DSO earnout scenarios?

Partially. Use the DSO Offer Analyzer for deals with earnouts and equity rollovers — that tool handles the timing and risk of deferred compensation, which the Net Proceeds Calculator treats as an all-cash sale.

Can I save my results?

Yes, with a free account. Otherwise the math is in front of you during the session.

Does broker commission always come out?

Only if you've listed with a broker. SellPracticeNow charges no commission. If you're already under broker contract, check whether their agreement runs with the listing or with the eventual buyer — some sellers accidentally pay two commissions.

Should I just pay a CPA to run this?

Eventually yes, once you have an offer. But you shouldn't be talking to buyers until you know your target net. This tool gets you there.