---
title: "What Is Overhead percentage? Dental Practice Glossary"
description: "The overhead percentage is total practice expenses divided by collections, shown as a percentage, and it tells an owner how much of each collected dollar goes to..."
url: https://joncopeland.multisites.ai/glossary/overhead-percentage
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Overhead percentage

The overhead percentage is total practice expenses divided by collections, shown as a percentage, and it tells an owner how much of each collected dollar goes to costs.

The ADA defines overhead as the ratio of your expenses to your collection, expressed as a percentage. A practice that collects 100 dollars and spends 62 dollars has an overhead percentage of 62. ADA News (March 2022) said industry-wide practice overhead averages around 62 percent, and it quoted a consulting firm's target of 59 percent for general practices. A target from one firm is not a standard. Sources may count owner pay, depreciation or rent differently, which changes the result. Before comparing with a [benchmark](https://joncopeland.multisites.ai/glossary/benchmark), confirm what each side includes. Use [collections](https://joncopeland.multisites.ai/glossary/collections) as the base unless the source says otherwise. See also [overhead](https://joncopeland.multisites.ai/glossary/overhead).

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Overhead](https://joncopeland.multisites.ai/glossary/overhead)
-   [Collections](https://joncopeland.multisites.ai/glossary/collections)
-   [Benchmark](https://joncopeland.multisites.ai/glossary/benchmark)
-   [Profit margin](https://joncopeland.multisites.ai/glossary/profit-margin)

## Sources

1.  [ADA, How to purchase with confidence](https://www.ada.org/resources/careers/career-planning/how-to-purchase-with-confidence)
2.  [ADA News, Ask the Expert: Practical strategies to reduce dental practice expenses (March 2022)](https://adanews.ada.org/new-dentist/2022/march/ask-the-expert-practical-strategies-to-reduce-dental-practice-expenses/)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)