Calculator
Practice value range calculator
Two buyers read the same books differently. A private buyer prices against collections and the note it can carry. A group buyer prices against adjusted earnings after a market rate for the owner's clinical work. Enter the collections and see both.
Direct answer
Practition Finance publishes this model so an owner or a buyer can place a practice inside published value ranges before a price is negotiated. It applies 2 published range types, collections-based and earnings-based, to the same books and shows where private and group buyers commonly diverge.
As of October 2026
Run your numbers
Model the payment
Move the amount, the term, and the rate to see what the note costs per month and across its life
The valued share being bought, or the balance being refinanced
Move this to the range your bank or the market is quoting
Monthly payment
$9,705
120 months at 9.5%, principal and interest
Interest across the term
$414,578
Before any origination, packaging, or guarantee fee the structure carries
Total repaid
$1,164,578
Principal plus interest, if the note runs to maturity with no prepayment
Educational arithmetic on the numbers you entered. It is not a quote, a promise to lend, or an indication of offers to come, and no funder has priced this file. Program availability varies by state.
| Assumption | What the model uses | Why it is set that way |
|---|---|---|
| Collections basis | Trailing 12 months, net of refunds | Collections are the line both buyer types start from, and a trailing window smooths a single strong quarter. |
| Owner compensation | Normalized to a market rate for the clinical work | Earnings-based pricing removes the owner's draw and replaces it with what an associate would cost, which changes the multiple. |
| Add-backs | Documented and non-recurring only | A buyer's lender will read the same tax returns, so an add-back without an invoice behind it does not survive diligence. |
| Real estate | Valued separately | Property is a second transaction with its own financing and its own term, and mixing the two distorts both. |
| Goodwill share | Applied against the total, not added to it | Most of the price in a practice sale sits in goodwill rather than equipment, which affects how a lender secures the note. |
| Range, not a valuation | Published market ranges, dated | A formal valuation is a paid engagement with a standard of value. This model places a practice inside published ranges. |
Educational arithmetic on the numbers entered. It is not a quote, a promise to lend, or // copy-allow an indication of offers to come, and program availability varies by state.
How to read what it gives you
Read the width, not the midpoint
The distance between the low and the high end of the range is the negotiation. A practice at the top of a range needs a documented reason: hygiene performance, payer mix, a signed lease, or a retained associate.
Compare the two buyer types
The collections-based figure tells a private buyer what a note can carry. The earnings-based figure tells a group buyer what the cash flow supports after paying for clinical labor. A gap between them is a story about owner compensation.
Test the price against financing
A price only closes if the payment clears against collections. Take the range into the acquisition model and check coverage before treating any point in the range as achievable.
Discount for concentration
Value falls when production concentrates in one provider who is leaving, when one payer dominates, or when the lease has a short remaining term. Each of those is a documented adjustment rather than a feeling.
When the number means it is time to talk to someone
- The seller is retaining an ownership share, which turns the deal into a structured buy-in
- A group buyer has offered a price with an equity rollover component
- Production concentrates in an associate whose employment agreement ends at closing
- Real estate is part of the transaction and the rent is above or below market
- The books show a collections trend that diverges from the production trend
The figures behind the model
| What it measures | Market range | Confidence | How to read it |
|---|---|---|---|
| Private sale pricing range | 65% to 85% of collections, clustering 70% to 80%, specialty 80% to 100%4 | VerifiedAugust 2026 | Where individual buyers commonly price against collections. |
| Group buyer multiples | 5x to 8x single location, 8x to 11x multi-location above $1,000,000 EBITDA5 | VerifiedAugust 2026 | Where group buyers commonly price against adjusted earnings. |
| Collections coverage test | About 60% practice cash flow, 40% buyer personal strength1 | DirectionalAugust 2026 | The coverage ceiling that decides whether a price is financeable. |
Keep the numbers
Email me this scenario
The page stays open either way. This sends a copy of the inputs you noted, so the numbers are in your inbox when you sit down with an accountant or a partner.
What owners ask about this calculator
01Is this a valuation?
No. A valuation is a paid engagement performed to a standard of value with a written report. This places a practice inside published market ranges using its own collections and adjusted earnings, which is the arithmetic a buyer runs before commissioning anything formal.
02Why do group buyers and private buyers reach different numbers?
They buy different things. A private buyer buys a job and a note, priced against collections. A group buyer buys cash flow after paying market compensation for clinical work, priced against adjusted earnings. The same books support 2 defensible prices.
03What raises a practice toward the top of the range?
Documented hygiene performance, a payer mix without a single dominant contract, a lease with meaningful remaining term, retained clinical staff, and collections that track production. Each of those is verifiable in diligence, which is why buyers pay for them.
04How does a seller note affect the price?
A seller note bridges the gap between the price and what a bank note supports, and it commonly sits on standby for a period. It raises achievable price and moves risk to the seller, which is why its terms are negotiated alongside the number.
05Does Practition Finance price practices?
No. Practition Finance publishes market ranges with their sources and dates. Any transaction price comes from the parties and their advisors, and any financing terms come from a funding partner that communicates directly with the buyer.
Sources
- 1American Dental Association, Health Policy Institute
- 2Medical Group Management Association
- 3Internal Revenue Service, business valuation guidance
- 4dentalpracticeinsider.org, dentaltransitions.com
- 5dentaltransitions.com (McLerran)
When the range is in front of you and the books are clean, send the request for team review