Guide · Updated July 2026
How much is my dental practice worth?
Most Australian dental practices are worth about 3 to 5 times adjusted EBITDA — which usually works out to somewhere between 60% and 90% of annual gross fees. Where your practice lands in that range comes down to how much of the profit survives without you.
Want a number now? Use the free calculator → Or read on for exactly how that figure is built.
The two methods that decide it
1. Adjusted-EBITDA multiple (the primary method). Normalise your profit — add back one-offs and pay the owner-dentist a market-rate wage — to get adjusted EBITDA, then multiply by 3× to 5×. This is what buyers, banks and valuers use.
2. Percentage of gross fees (the cross-check). A faster sense-check at 60–90% of annual gross fees. It ignores your margin, so it's blunt — but when it agrees with the EBITDA method, you can trust the range.
A worked example
A practice with $1,200,000 in gross fees and $360,000 adjusted EBITDA (a 30% margin):
- EBITDA method: $360,000 × 3–5 = $1.08M – $1.8M
- Gross-fees method: $1,200,000 × 60–90% = $720k – $1.08M
A sensible central estimate lands around $1.0M–$1.1M, with the top of the range for a well-systemised, low-owner-reliance practice.
What moves your number
The biggest driver by far is owner reliance. If your profit walks out the door when you do, buyers discount heavily. If associates and hygienists generate it, your multiple climbs. After that: lease length and terms, location and competition, equipment condition, staff stability, and how clean your financial records are. We break these down in how dental valuations work.
An estimate isn't a valuation
An online range is a great starting point — but before you sell, buy, borrow against, or restructure a practice, you need a formal valuation: a documented report that accounts for your specific lease, staff, patients and equipment, and that carries weight with buyers, banks, courts and the ATO. Request one here.
What that report has to contain depends on why you need it — see all valuation purposes, including family law, buy-in & buy-out and ATO & CGT.
Common questions
What is the average value of a dental practice in Australia?
There's no single average — value scales with profit. A practice billing about $1 million with healthy margins might sit roughly $600,000 to $1 million, but owner reliance, lease and location move it substantially.
Do I use revenue or profit to value my practice?
Profit is more reliable — two practices with the same revenue can be worth very different amounts at different margins. Adjusted EBITDA is what valuers capitalise.
How can I increase my practice value before selling?
Reduce reliance on yourself by building associate and hygiene revenue, secure a long assignable lease, clean up your financials, retain key staff, and keep equipment current.
General information only, current as at July 2026. Not financial or valuation advice. Author: Juen Phie — Chartered Accountant & Founder, P&Y Partners.