How much does a dental practice make?

How much does a dental practice make?
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In this article, we outline how much a dental clinic makes on average to help you make an informed decision about your own clinic. 

We provide rough estimates per patient and also look at some practices currently for sale. This gives a sense of what different practices can bring in, based on location and capacity. 

Dental practice profit NZ

How much does a dental practice make?

The turnover of a dental practice varies anywhere from $500,000 to $2 million, depending on location, capacity, service offering, and overall appeal for patients. To demonstrate this, we’ve highlighted a few examples of clinics for sale around New Zealand. 

Under $500K turnover

A clinic with a lower turnover rate is likely to either be in a rural location or have a lower capacity. For example, this small clinic in Northcote is 100 square metres with one surgery. The turnover range is under $500K. 

Northcote Dental Clinic for sale

In comparison, this two-chair clinic North of Auckland also generates under $500,000 due to its rural location, despite having higher capacity.

North Auckland Dental Clinic for sale

$750K and $1 million turnover

This high-end practice in Palmerston North has four surgeries, ample parking, and prominent signage. The turnover range is between $750K and $1M, due to its sophisticated design, and high visibility location. 

Over $1 million turnover

This practice in Invercargill has two surgeries, large windows, and a spacious reception area. The turnover range is over $1M, owing to the prominent signage and light-filled, welcoming fitout. 

Invercargill Dental Practice for Sale

$1.5 million to $2 million turnover

A modern clinic with a higher capacity is likely to generate a significant amount of turnover, especially when it is located in the right market. 

For example, this modernised clinic in South Auckland has three surgeries and is located in a busy shopping centre with ample parking. The turnover range is $1.5M to $2M, owing to its convenient location, higher capacity, and recently updated fitout.

South Auckland Dental Clinic for sale

For more examples, browse the latest dental practices for sale in New Zealand.

Learn how to maximise your dental practice's value when selling ›

Profit estimates per patient 

According to data from the Association of Salaried Medical Specialists (ASMS), the 
average dental outlet turns over $763,000 a year, averaging nine transactions a day. 

On average in 2022, people spent approximately $353 at each visit. Therefore, the average profit per patient is $232.27.

How to set up a dental practice

Establishing a new practice can be overwhelming, with many considerations to explore in planning and implementation. At Dentec, we have helped a significant number of dental practitioners establish new practices all around New Zealand and have gained many insights in the process. 

Here are some important points to consider when starting a new dental practice:

Dental finance

The cost to finance a practice can range between $150,000 and $550,000, covering the design, fitout, and equipment. Dental practice loans are similar to other business loans and are considered low-risk. 

For equipment, there are lease or lease-to-own options that can help reduce your initial outlaw while your patient base is still growing. If you have any questions about financing your new practice feel free to contact us and we'll help guide you in the right direction.

Service supplies

When establishing a new dental practice, you will need to make sure the space is fitted with service lines for compressed air, extraction systems, and suction and plumbing lines. This must be considered in the very early stages of planning which is why we recommend you contact our team for a no-obligation site assessment. 

Design requirements

Your dental fitout should be welcoming and professional, centred around patient comfort, efficiency, and staff satisfaction. Whether you're opening your first practice or want to rejuvenate an existing building, speak with a trusted provider to ensure you get the design right.

Layout

A key consideration for your dental practice fitout is how much space you need for each room — including the waiting room, treatment rooms, reception, bathrooms, OPG area, and storage rooms. 

Dental Practice Fitout

At Dentec, our team of professional designers, managers, qualified installation engineers, and service technicians can cover every aspect of your design and fitout to give you peace of mind that everything is looked after and communicated to you every step of the way.

Design and build services ›

Equipment

Advanced technology enables you to provide exceptional dental care to your patients and ensures staff can operate safely and efficiently. By keeping up-to-date with modern equipment, you communicate to your patients that they're receiving the highest level of care. This is also an effective way to distinguish your practice from competitors.

At Dentec, we supply a range of high-quality dental equipment, including dental chairs and stools, imaging and 3D printing, dental suction, dental compressors, sterilisation and hygiene, handheld tools, dental lighting, and laboratory equipment.

SETTING UP A DENTAL PRACTICE?

For more information and recommendations on starting your own dental practice, download a free copy of our helpful guide. Inside, you’ll find everything you need to know about dental clinic setup, including financing, fitout design, and more. 

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