--- title: "What is a normal overhead percentage for a dental practice?" description: "Overhead is operating costs divided by collections. See the 60-65% figure one vendor reports, why definitions differ and what a 2025 practice survey found." url: https://joncopeland.multisites.ai/blog/dental-practice-overhead-percentage publisher: Copeland Consulting Services email: drcopeland@joncopelanddds.com contact: https://joncopeland.multisites.ai/contact --- # What is a normal overhead percentage for a dental practice? No official standard exists for dental overhead. A 2025 Overjet vendor blog says 60-65% of collections is typical and attributes that to the ADA, which this post could not confirm. A 2025 Dental Economics survey found overhead rose 5.1% in 2024. Always check whether owner pay is included. Practice managementPublished October 26, 20264 min read Owners often ask what overhead should be. The honest answer is that no official standard exists, and figures online depend on definitions. This post reports what three sources opened on October 26, 2026 say, labels each by publisher and year, and lists what to check before comparing. It is general information, not accounting advice. Ask your CPA how to define overhead for your practice. ## What is dental practice overhead? [Overhead](https://joncopeland.multisites.ai/glossary/overhead) is the cost of running the practice. The [overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage) divides those costs by [collections](https://joncopeland.multisites.ai/glossary/collections). Overjet, a dental software company, defines it in a 2025 blog post as every expense except doctor compensation, including staff salaries, supplies, rent, equipment and administrative costs. That definition is a choice. Another source could count owner pay as an expense. The same practice would then show a higher percentage. This is the first reason that figures from different sources do not line up. ## What overhead percentage do sources report? The Overjet post (September 2025) says overhead typically ranges from 60-65% of total collections and attributes this to the American Dental Association (ADA). This post could not find that figure on the ADA pages it opened, so treat it as a vendor claim. Overjet also reports a median near 62% and says high-performing practices often keep overhead between 55% and 60%. It offers no study or sample size for those statements. Overjet reports these ranges by size, all as shares of collections. Practice type (Overjet, 2025) Reported overhead Under $750,000 in collections 70-80% $750,000 to $1.5 million 60-70% Above $1.5 million Often below 60% Multi-location DSOs 50-55% Overjet also gives category ranges as shares of collections: staff and payroll 25-30%, supplies and lab fees 6-8%, facility and equipment 6-10%, marketing 2-4%, and technology 1-3%. These are vendor figures. Overjet sells dental AI software, so weigh them accordingly. The payroll and lab fee lines are common ones to track. ## Is overhead rising? A 2025 Dental Economics article by Levin Group reports on its 19th annual practice survey, taken in January 2025 among general dentists in private practice. Ninety-one percent of respondents were owners or partners. The article reports: Finding (Dental Economics, May 2025) Number Practices reporting higher overhead in 2024 65% Practices reporting lower overhead 14% Practices reporting no change 21% Average overhead increase in 2024 5.1% Dentists naming rising overhead as biggest challenge 62% The article calls the roughly 5% yearly rise a possible new normal. The author leads Levin Group, a practice management consulting firm, and his recommendations lean toward higher production. This post uses only the survey counts. ## How do you calculate your own overhead? Use a repeatable method. These steps follow the Overjet example, and you should confirm them with a CPA. 1. Collect 12 months of profit and loss data. 2. List operating expenses the same way each month. 3. Decide in writing whether owner pay is in or out. 4. Divide total expenses by total collections. 5. Track the result over time. The example in the Overjet post divides $600,000 in expenses by $1,000,000 in collections to get 60%. Those numbers are an illustration, not a benchmark. ## What does the ADA say about overhead? The ADA’s finance guidance, drawn from material by practice consultant Ken Runkle, suggests viewing overhead in terms of revenue. It says growth, not only cost cutting, affects the percentage. The page offers no benchmark number. The wider guide on [dental practice KPIs and benchmarks](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks) explains why a single number rarely fits every practice. ## What does a percentage mean in dollars? Overjet gives a simple illustration. A practice collecting $1,000,000 a year keeps a different amount before doctor pay at each overhead level. Overhead (illustration from Overjet, 2025) Kept before doctor compensation 55% $450,000 65% $350,000 The figures show arithmetic, not a forecast. Real practices differ in size, payer mix and local costs. ## Why do sources disagree, and what is a point worth? Overjet says the gap between 55% and 70% overhead on $1 million in collections is $150,000 in profit. That is simple arithmetic: 15 points of $1,000,000. Dental Economics gives a similar example. An $800,000 practice that cuts overhead by 4% adds $32,000 in annual profit and income, which is 4 points of $800,000. Both examples rest on the same idea: each point of overhead is a point of collections. They do not show that any practice can cut overhead by that amount. Costs, contracts and local markets differ, and some cuts reduce care or staff capacity. Weigh any projected savings against the practice’s own books. ## What should you check before comparing? Use this checklist when you see an overhead number. Check Why Who published it, and who pays them? Vendors sell products What year? Costs have changed since 2020 Is owner pay included? It changes the percentage What is the base: collections or production? The percentage differs What is the sample? Surveys of owners are not censuses Collections and production are different bases, as the post on [production vs collections](https://joncopeland.multisites.ai/blog/dental-production-vs-collections) explains. The [guide to dental practice management](https://joncopeland.multisites.ai/guides/dental-practice-management) covers the systems behind these numbers. ## Next step For the full set of numbers practices track, read the guide on [dental practice KPIs and benchmarks](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks). Contact Dr. Copeland about [consulting questions](https://joncopeland.multisites.ai/contact?topic=consulting). Dr. Jon Copeland, DDS, is a general dentist in Wildwood, Missouri. ## Frequently asked questions ### What is a good overhead percentage for a dental practice? No official standard was found. One vendor blog from 2025 reports 60-65% of collections as typical. Another source explains that overhead depends on what is counted. Compare your own trend over time, and ask your CPA how to define overhead for your books. ### How do you calculate overhead percentage? Divide operating expenses by collections and multiply by 100. The Overjet example divides $600,000 in expenses by $1,000,000 in collections to get 60%. That source excludes doctor compensation from expenses. Confirm that choice with your CPA before you compare. ### Is overhead going up? A Dental Economics survey of general dentists, taken in January 2025, reported that 65% of practices had higher overhead in 2024 and that the average increase was 5.1%. It is a survey of mostly independent practice owners, not a census. ## Terms on this page - [American Dental Association](https://joncopeland.multisites.ai/glossary/american-dental-association) - [Dental practice management](https://joncopeland.multisites.ai/glossary/dental-practice-management) - [Dental practice KPIs](https://joncopeland.multisites.ai/glossary/dental-practice-kpis) - [Overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage) - [Collections](https://joncopeland.multisites.ai/glossary/collections) - [Production](https://joncopeland.multisites.ai/glossary/production) - [Benchmark](https://joncopeland.multisites.ai/glossary/benchmark) - [Lab fees](https://joncopeland.multisites.ai/glossary/lab-fees) - [ADA](https://joncopeland.multisites.ai/glossary/ada) ## Sources 1. [Overjet (vendor blog): Average Dental Office Overhead, Complete Breakdown by Practice Size, September 2025](https://www.overjet.com/blog/average-dental-office-overhead-complete-breakdown-by-practice-size) 2. [Dental Economics (Levin Group): Higher production helps offset chronic overhead increases, May 2025](https://www.dentaleconomics.com/practice/overhead-and-profitability/article/55280684/higher-production-helps-offset-chronic-overhead-increases) 3. [American Dental Association: Six Ways to Strengthen Your Practice's Bottom Line](https://www.ada.org/resources/practice/practice-management/finances/six-habits-of-financially-secure-practices) Written by Copeland Consulting Services and checked against the sources above on October 26, 2026. Rules, data and guidance change, so check the linked page before you act on it. ## Keep reading - [Dental practice KPIs and benchmarks: formulas, sources and limitsA dental practice KPI is a number the team tracks on a schedule, such as collections, overhead percentage, no-show rate or case acceptance. Few KPIs have an official benchmark. The ADA publishes survey averages for income and billings. Most other benchmarks online come from vendors, and formulas differ, so compare your own trend first.](https://joncopeland.multisites.ai/guides/dental-practice-kpis-and-benchmarks) - [Production vs collections in a dental practiceProduction is the value of treatment a practice bills. Collections is the money it actually receives. In an ADA crown example, total production was $1,500 and collections were $950, which is 95% of billable production but 63% of total production. Always ask which base a percentage uses.](https://joncopeland.multisites.ai/blog/dental-production-vs-collections) - [Dental practice management: people, money, schedule, patients and complianceDental practice management is the business side of running a dental office: finances, scheduling, patient communication, insurance decisions, team systems and legal compliance. Track a few core numbers, build written systems, review them on a set schedule, and use federal and ADA sources for compliance basics.](https://joncopeland.multisites.ai/guides/dental-practice-management) - [Dental practice compliance checklist: OSHA, HIPAA and infection controlA dental compliance checklist covers three federal areas: OSHA workplace safety, HIPAA privacy and security, and CDC infection control. OSHA has no dentistry-specific standard but applies general industry standards such as bloodborne pathogens. HIPAA covers patient information. Use the checklist to organize questions, then confirm requirements with your own advisers.](https://joncopeland.multisites.ai/guides/dental-compliance-checklist) - [Buying a dental practice: steps, financing and due diligenceBuying a dental practice usually runs in six stages: define your goals, get financing, value the practice, sign a letter of intent, complete due diligence, and close. Lenders, attorneys and accountants each own part of the work. This guide explains the steps and lists questions to ask. It is not legal, tax or financial advice.](https://joncopeland.multisites.ai/guides/buying-a-dental-practice) - [Dental associate contracts: terms, pay models and red flags to ask aboutA dental associate contract sets pay, status, duties, term, termination, insurance and limits on work after you leave. The ADA publishes a guide to key provisions and a compensation explainer. Pay models differ in what they count, so read the formula. Have an attorney in your state review any contract before you sign.](https://joncopeland.multisites.ai/guides/dental-associate-contracts) ## Talk with Dr. Copeland [Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)