Net Profit Margin: 25–40% (well-run dental practices)
- Yaopeng Zhou
- Jul 25
- 2 min read
Summary:
Gross Profit Margin: 65–80%
Net Profit Margin: 25–40% (well-run practices)
Revenue Breakdown (per year, per dentist):
Source of Revenue | % of Total Revenue | Typical Annual $ Amount |
Preventive care (cleanings, exams) | 10–15% | $100K–$150K |
Restorative (fillings, crowns) | 30–40% | $300K–$400K |
Prosthodontics (dentures, bridges) | 10–15% | $100K–$150K |
Endodontics (root canals) | 5–10% | $50K–$100K |
Cosmetic & elective (whitening, veneers) | 5–15% | $50K–$150K |
Oral surgery, implants | 5–10% | $50K–$100K |
Total Gross Revenue | 100% | $800K–$1.2M+ |
A solo GP dentist typically collects $800K–$1.5M/year depending on location and patient volume.
Typical Expense Categories:
Expense Category | % of Revenue | Notes |
Dental Supplies & Lab Fees (COGS) | 10–15% | Crowns, implants, disposables |
Staff Salaries & Benefits | 25–30% | Hygienists, assistants, admin |
Occupancy (Rent/Utilities) | 5–8% | Office lease and utilities |
Marketing & Advertising | 2–6% | Google, SEO, mailers, reviews |
Equipment/Tech Maintenance | 3–5% | Cone beam, CAD/CAM, software |
General Admin & Insurance | 5–10% | Malpractice, software, billing |
Doctor Compensation | Owner draw | Net profit includes this if owner/operator |
Total Operating Expenses | ~60–75% | Leaner than optometry |
Net Profit Margin:
Practice Type | Net Margin |
Well-managed private practice | 30–40% |
Average general dental office | 25–30% |
Overhead-heavy/poorly run | <20% |
Owner-operated GPs often net $250K–$500K/year in income, depending on efficiency.
Ways to Improve Dental Margins:
Improve Case Acceptance – Use intraoral photos + patient education to close more treatment plans.
Add High-Margin Services – Implants, Invisalign, teeth whitening.
Reduce Lab/Supply Costs – Use negotiated bulk pricing or in-house milling (CEREC).
Increase Hygiene Recall Rates – More recurring visits = higher base revenue.
Streamline Scheduling – Reduce downtime in the chair; use block scheduling.
Automate Billing & Claims – Reduce admin load and errors.
Compare Dental vs Optometry:
Metric | Dental Office | Optometry Office |
Annual Revenue/Provider | $800K–$1.5M | $400K–$800K |
Net Profit Margin | 25–40% | 15–30% |
COGS | 10–15% | 25–40% |
Higher-ticket services | Yes (implants, crowns) | Rare (glasses, lenses) |
Patient Visit Frequency | 1–2x/year | 1x/year |
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