Average Dental Office Overhead: Mastering Your Costs, Maximizing Your Profits

February 17, 2025
Written by: Jordon Comstock

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Average Dental Office Overhead

If you’re in the dental biz, you’ve probably asked yourself: Why does it feel like I’m making money but not keeping it?That, my friend, is the soul-sucking monster of overhead. Let’s break it down, take control, and toss in a bit of BoomCloud™ magic to make your practice not just survive but thrive.


The Skinny on Average Overhead in a Dental Office

On average, dental office overhead runs between 60% and 75% of gross revenue. That’s right—up to three-quarters of every dollar is already spent before you even think about your personal paycheck. Here’s how it typically shakes out:

Expense Category % of Revenue
Staff Salaries 25% – 30%
Rent/Utilities 5% – 10%
Supplies 6% – 8%
Lab Fees 6% – 8%
Marketing 3% – 5%
Miscellaneous/Admin 10% – 15%

High overhead can strangle your cash flow and stress you out more than a patient who “hates the dentist.”


How to Control Costs and Optimize Profit

  1. Staff Smarter, Not Harder:
    Sure, your team is crucial, but overstaffing will eat into profits faster than you can say “root canal.” Focus on training your team to work efficiently rather than just adding more bodies.
  2. Negotiate Supply Costs:
    Don’t be afraid to shop around for better deals or negotiate with your suppliers. Those little percentage points saved on materials add up big-time.
  3. Automate Like a Boss:
    Use software for patient scheduling, billing, and—yes—membership plans. Tools like BoomCloud™ streamline admin tasks and free up your team to focus on patient care.
  4. Implement a Membership Program:
    This one is a game-changer (more on that in a second). Membership programs generate predictable recurring revenue and slash reliance on insurance companies that eat into your bottom line.
  5. Track Key Metrics:
    Know your MRR (Monthly Recurring Revenue), ARR (Annual Recurring Revenue), and overhead percentage. What gets measured gets managed.

Why a Membership Program Is Overhead’s Kryptonite

Let’s talk about recurring revenue because oh boy is it sweet. Membership patients:

  • Spend More: On average, 2X to 4X more than PPO patients.
  • Loyal as Heck: Membership patients stick with your practice, reducing churn and keeping your chairs full.
  • Boost Hygiene and Restorative Care: These programs encourage regular visits, which lead to more treatment opportunities.

Case Study: Wood River Dental + BoomCloud™

Wood River Dental was drowning in overhead and PPO headaches until they rolled out BoomCloud™. The results?

  • Active Members: 1,200 patients.
  • Monthly Recurring Revenue (MRR): $162,000.
  • Annual Recurring Revenue (ARR): $1.94 million.
    Membership patients not only paid upfront but returned consistently for hygiene and restorative care. Goodbye, insurance write-offs; hello, profitability!

Maximizing Revenue Per Patient: The Secret Sauce

With a membership program, you’re no longer playing the insurance game. Instead, you’re giving patients what they want—affordable, transparent pricing—and they reward you by spending more.

PPO Patient Membership Patient
$600 annual revenue $2,400 annual revenue

Wrap It All Up in a Bow

If you want to slay your overhead dragon and turn your practice into a profit machine:

  • Optimize Costs: Streamline where you can.
  • Implement a Membership Program: Predictable revenue is your best friend.
  • Measure, Measure, Measure: Know your numbers and adjust accordingly.

Finally, don’t just sit on this knowledge. Act on it! Check out BoomCloud™ to learn how you can scale your membership plan and dominate overhead like the rockstar you are.

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Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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