Free Dental Practice Valuation Calculator
Valuation is the foundation of every dental practice sale. Price too high and you'll sit on the market for a year watching buyers walk. Price too low and you leave hundreds of thousands of dollars on the table. The EzValuation Calculator gives you two industry-standard estimates in under two minutes, using the same methods brokers charge $3,000 to $8,000 to run.
How Dental Practices Are Valued
Two methods dominate the market. The Collections Method applies a percentage — typically 60% to 85% — to trailing twelve-month collections. It's fast and widely used for general practices. The SDE Method calculates Seller's Discretionary Earnings (net income plus owner compensation, benefits, and one-time expenses) then applies a multiple between 1.5x and 2.8x depending on practice type, location, and buyer profile.
Neither method alone tells the full story. A practice with strong collections but bloated overhead will value differently under each. A specialist practice with strong SDE but declining collections is a different conversation. The calculator runs both and shows the range.
What Affects Your Multiple
The same practice can be worth 1.7x SDE or 2.5x SDE depending on factors that have nothing to do with last year's numbers. Location matters — urban and suburban practices trade at higher multiples than rural. Specialty matters — orthodontics, oral surgery, and endodontics command 2.2x to 3.0x+ while general ranges 1.5x to 2.3x. Patient base matters — high insurance dependency caps multiples, strong fee-for-service lifts them. Staff tenure, real estate ownership, and seller transition flexibility all push the multiple up or down by 0.2x to 0.4x in either direction.
When to Use This Tool
Run the calculator before you talk to any broker, lender, or DSO. It gives you a defensible number to walk into conversations with. It tells you whether the offer in front of you is serious or a lowball. It lets you back into what you'd actually net after taxes and debt. Re-run it quarterly to track how your value trends as you make operational changes.
Frequently Asked Questions
Is this calculator accurate?
For a starting estimate, yes. It uses the same Collections and SDE methods professional appraisers use, with multiples calibrated to current market transactions. It won't replace a formal appraisal for a signed LOI, but it will tell you whether you're in the right zip code.
Do I need my tax return to use it?
No. You need annual collections, overhead percentage, and a few practice details. If you have your P&L in front of you it will be more accurate, but rough numbers still produce a useful range.
What's the difference between collections and SDE?
Collections is your top-line revenue after adjustments. SDE is what the practice actually puts in the owner's pocket — net income plus owner compensation and any non-essential expenses a new owner could cut. Buyers care most about SDE because it's what they'll earn.
Does my specialty change the valuation?
Significantly. Specialty practices typically trade at 20% to 60% higher multiples than general dentistry. The calculator adjusts for specialty when you select it.
How often should I re-run the calculator?
Quarterly if you're actively preparing for a sale. Annually if you're three or more years out. Your value changes with your collections, your payer mix, and the broader market.
Is my information private?
Yes. The calculator runs in your browser. Inputs aren't stored unless you explicitly save them to an account.