How Much Does It Cost To Open A Dental Practice?

Dentists are oral health professionals who practice dental and gum healthcare in a dental hospital or in private practice. Most dentists want to open their own dental practice at some point in their lives. If you are one of them, you may have considered owning a dental practice one day. 

The steps to opening a successful dental practice can be a bit complicated because you have to consider many things before opening a dental practice. However, the first question that comes to mind when it comes to opening a dental practice is how much does it cost to open a dental practice?

The cost of a new dental practice can range from $300,000- $500,000, depending on important factors such as the size of your office or location.

In this article, we will explain what are the initial costs of opening a dental practice and how you can raise cash to open your own dental practice.

Let’s start.

How Much Does It Cost To Open A Dental Practice: The Facts Behind

The cost of dental practice varies from place to place. It also depends on other things like the size of your office, how many assistants you need, and how you are going to advertise your dental practice to the patient.

Considering all these facts, you may have to invest around $ 500,000 to open a dental practice. So, how does a dental practice cost about half a million dollars?

Let’s find out.

What Are The Main Costs Of Opening A Dental Practice?

Before you start a dental practice, you need to understand the costs and determine how you are going to pay for those costs.

The main cost of opening a dental practice is the cost of building your office. Choosing a place and building an office is one of the most difficult tasks. It will cost you a lot of money.

You may have to spend around $ 250,000 to build new rooms, remodel projects, and even repair the building foundation. The value of the place may vary from state to state.

Apart from the space, there are other basic things that a new dental practice needs, such as structural upfits, computers, lab equipment, and dental supplies. These items can cost up to $ 200,000 in cash. 

Why You Should Start A Dental Practice?

There are many reasons to start a dental practice. Of course, opening up a dental practice is a huge step and should not be taken lightly. So before you take a step, it is important to ask why you should open a dental practice.

  • If you feel comfortable working independently, then opening your own dental practice may be a good idea.
  • Working as an employee can be very tiring because you will probably have to work fixed hours on day to day basis. But having your own dental practice means you don’t have to work under anyone and you have the freedom to work anytime and for as long as you want.
  • Income will also be flexible depending on your efforts.

What Does It Take To Open A Dental Practice?

Opening a new dental practice and managing all the equipment and staff may be an irresistible experience. But it takes time and careful planning. So, It is better to start your dental practice with financial support and a  good business plan. Here are some steps you should take into consideration before opening a dental practice.

Creating a dental practice business plan – The first step in opening a dental practice is to create a business plan. A business plan is a detailed description of your practice that includes your business strategy, standard operating procedures, costs, projecting income, and other financial information.

Finding a suitable place for your practice – The most important decision you have to make is to determine its location. Once you know the general area in which you want to practice, it will be easier for you to do other things.

You need to research your competition and the population of the area as well.

Deciding what tools and software you will need –  Decide what equipment and software you need before opening a dental practice. Before deciding on dental practice management tools and software,  read some dental software reviews and ask dental professionals about their experiences. You may also need a dental website that you should take from a professional company.

Determining Your Layout and Space Requirements – It is important to determine how much space you need for your consultation room, waiting room, reception area, bathroom, private office, and storage space.

Considering another partner – Working with a partner can help reduce the cost of opening your dental practice. But it is difficult to find someone like you who has the same vision.

Obtaining money to start your practice – Determine your financial requirement and get financial support or apply for a loan from a bank. 

Developing a  dental marketing strategy – Developing digital marketing strategies like creating a website, social media group, or page can help you attract new patients and increase the recognition of your dental practice. You need also think about how you will rank your website. Hence, a good SEO company can be very helpful.

Obtaining permits and licenses – One of the most important things you need to do when opening a new dental practice is to make sure you have all the necessary permits, licenses, etc. for practicing dentistry in your area.

Different Types Of Cost Of Opening A Dental Practice

The cost of opening a dental practice can be divided into two types. One-time costs and monthly recurring costs. The one-time cost is just what you need to spend when starting a dental practice. On the other hand, you have to bear the recurring cost as long as you run your dental practice.

One-time cost – One-time costs include space costs, materials costs, approval costs, etc. You only have to pay these costs only one time.

Monthly costs – Once you start dental practice, you need to start paying attention to its monthly expenses. Monthly costs include rent of your dental place, electricity bill, phone bill, internet bill, staff salaries, etc. 

The Overall Cost Of Owning A Dental Practice

We have already discussed the basic costs of dental practice. Now we need to make sure whether you are aware of the overall cost of owning your own practice. 

The overall costs of dental practice include staff costs and their salaries, lab fees, marketing costs, license and permission fees along with the basic cost. 

Below is the cost of the different sectors you need to open a new dental office.

Dental equipment – Dental equipment includes a Patient Chair, Dental Examination material, compressor, motorized suction, Washer Disinfectors, Gloves, Napkins, etc. These things can cost up to  $50,000. 

Staff costs – The maximum cost of any dental practice is the money spent on the staff. Staff costs include not only salaries but also taxes and other benefits that are offered to employees such as bonuses, leave, health insurance.

Computers and software – You need computers and laptops to save the patient database. You may need other electronic devices such as a television, a small refrigerator, water purifier, air conditioner, etc. These devices can cost around $40,000-$50,000.

Marketing cost – You may have to invest a hefty fee for marketing purposes. For a website, IT support, and marketing content, you need to set aside about $70,000 or more for these costs.

Laboratory fees – The laboratory fee for a dental practice depends on the number of patients in an office.  So it is a bit difficult to estimate how much a dental office spends on the lab annually. 

You may have to spend around $50,000 on all the laboratory equipment and fees. You also need to allocate around 10% of your annual dental practice income for the lab fees every year. 

Other costs –  The money spent to buy things for practice is just the beginning. You will need to consider a number of fees and charges including, dental association fees, solicitor and accountancy costs, appraisal fees, and bank charges.

There are some other costs such as license renewal, staff insurance, and running education for staff. You should set a fixed amount of money for these costs as well.

The overall cost given above is the average cost that most dentists spend on opening a dental practice. Of course, the cost of dental practice varies from place to place.

The cost of space and equipment is not the same in all areas of the United States. So find a suitable place where you can afford to open your own dental practice.

How To Finance A Dental Practice?

After learning about the cost of opening a dental practice, the question that may come to your mind is, how do you finance your new practice?

Well, experienced dentists have many options. They have many links for funding and they can approach more than one bank for support.

But the one thing you need to think about most when starting your new practice is your financial situation. Here are the steps you can take to finance your dental practice.

Applying for a bank loan – If your financial situation is not strong enough, it is better to apply for a bank loan. You should aim for a longer loan term. Long-term loans allow you to pay less monthly. Paying less gives you more flexibility as your income increases.

Most banks try to allocate a conventional term loan to reduce monthly payments. General term loans range from $ 30,000 to $ 5 million and their payment term is up to 10 years. 

However, You can repay most of the loan fines after three to five years. Make sure you do not carry a prepayment penalty.

Considering the interest rate – Consider a good interest rate because interest rates are more important than the money you are offered to.

Going for an SBA loan – The Small Business Administration (SBA) offers generous term loans which are ideal for small business loans. 

To start a dental practice, you can go for the popular SBA 7 year loan program, as it is widely used by dentists. General 7 year loans have some conditions that may suit your business. It offers a $ 5,000 to $ 5 million amount loan; the repayment term is five to 25 years along with an interest rate of 7%.

Being accountable with your finances – Be extra careful when spending for your dental practice. Before spending, create a financial plan and invest according to plan. Predict potential growth and work towards it.

Financing equipment – From chairs to computers, your equipment investment can cost thousands of dollars. So consider buying these things at a lower price.

Don’t purchase all the materials at the beginning. Consider what materials are essential for running a dental office and only buy those things. In this way, you can save a lot of money. Once you start to grow your practice, It will be a lot easier for you to buy all the rest of the materials. 

How Profitable Is A Dental Practice?

The average profit for a typical dental practice is about 30% to 40% of income, but this number is difficult to calculate accurately.

It may seem difficult to make a profit in the beginning but you have to be patient. If you manage your office properly, then you may start to get a good amount of profit by the 3rd year. After a few years, you may be able to get a profit of around 60% to 70%. 

Keep in mind that the world population is growing at the moment so the number of dental patients is increasing. So it can be said that opening a dental practice can be a very profitable business.


Opening a dental practice, arranging its materials, and managing it can be very expensive work. So be patient, research carefully and consider talking to a financial advisor before opening a dental practice on your own. Also, be sure to keep at least a 10% deposit before starting a dental practice.

That’s it. Hopefully, we have given you enough information about how much does it cost to open a dental practice.

However, this is not the only information. You should go to the market and do more research on the things you need and talk face to face with other dental practice owners to get an idea of ​​the cost of dental practice.

5/5 - (4 votes)

Leave a Comment