Guide · Updated September 2026
How much is my dental practice worth?
A practice valuation examines sustainable earnings, owner reliance and the assets and liabilities included. The examples here compare illustrative 3–5× adjusted EBITDA and 60–90% of revenue methods separately; they are not market evidence or equivalent measures of value.
Want a number now? Use the free calculator → Or read on for exactly how that figure is built.
The calculator and worked examples use illustrative assumptions of 3–5× adjusted EBITDA and 60–90% of revenue. They are not verified market evidence, a recommended transaction price or a standalone goodwill valuation.
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 apply the illustrative 3× to 5× assumptions here. A formal valuation needs evidence for its selected multiple.
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. Agreement with the EBITDA method does not validate the assumptions or a transaction price.
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
These are separate illustrative ranges, not a combined estimate or a recommended price.
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 is no single average that establishes the value of your practice. Revenue alone cannot answer this: sustainable profit, owner reliance, lease, location and valuation scope all matter.
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.