Dentists · Practice owners
Running a dental practice: the numbers that matter
A healthy, established dental clinic typically makes a 10% to 20% profit margin before interest, after paying every dentist, including a market-rate wage for an owner-dentist. Below are the cost ratios we see across our dental clients, what a chair should earn, what owners should pay themselves, and the three numbers our author watches every week at the clinic he runs.
By Inam Asiful
Senior Consultant, WeGrow Accountants · Director of a dental clinic in a metro region · Last reviewed 7 October 2026
Key points
- Profit margin: 10% to 20% for healthy, established clinics, after paying all dentists.
- Support staff wages 15% to 25%, lab 7% to 15%, consumables 5% to 7%, rent 3% to 5% of revenue.
- Marketing: 2% to 4% for established clinics, but 20% to 25% for new ones.
- A dentist's chair generates $500,000 to $1,200,000 a year; a hygienist's or OHT's about half.
- Owners: pay yourself 30% to 40% of the owner's own clinical billings.
Dental practice benchmarks (as a share of revenue)
| Measure | Typical range | Notes |
|---|---|---|
| Profit margin (before interest) | 10% to 20% | After paying all dentists, including a market-rate wage for an owner-dentist. Healthy, established clinics only. |
| Support staff wages | 15% to 25% | Excludes dentists. Start-ups can run up to 40%; staying near that level is a warning sign. |
| Lab fees | 7% to 15% | Higher for clinics doing a lot of clear aligner work. |
| Consumables | 5% to 7% | Keep below 7%. |
| Rent | 3% to 5% | |
| Marketing (mostly Google and Meta ads) | 2% to 4% established; 20% to 25% new clinics | A cost that keeps growing. |
Reading the numbers
- Wages vary widely with how the clinic is managed, its age and the demographic it serves.
- Lab fees depend on how much lab work goes outside and what the clinic mainly treats. Clinics doing a lot of clear aligner cases (such as Invisalign, Angel Aligner and Smartee) sit higher.
- Marketing is the cost that keeps creeping up. Google and Meta ads can take 20% to 25% of a new clinic's revenue while it builds a patient base.
Revenue per chair
| Who works the chair | Gross revenue a year |
|---|---|
| Dentist | $500,000 to $1,200,000 |
| Oral health therapist or hygienist | $250,000 to $600,000 |
Gross revenue (lab fees included), chair in use 5.5 days a week. It's a wide range: the biggest differences come from metro vs regional location and the type of treatment offered. As a cross-check, an associate billing $450 to $650 an hour over roughly 1,600 to 1,900 clinical hours a year produces about $720,000 to $1,235,000, which lines up.
What should a practice owner pay themselves?
We generally advise owners to take a salary of 30% to 40% of the owner's own clinical billings, in line with what an associate would be paid. Paying yourself like an associate keeps the clinic's true profit visible. That matters for decisions now, and it matters a lot when you come to sell; see how much a dental practice is worth.
The three numbers to watch every week
From the practice side
Running a dental clinic is hard, especially in Australia, where most medical treatment has some Medicare coverage but most dental treatment doesn't (Medicare's dental coverage is limited, for example to eligible children under the Child Dental Benefits Schedule). Patients usually pay themselves or through private health cover, so clear communication about treatment and costs is key. At his own clinic, Inam watches three numbers every week:
- Lead conversion rate: how many enquiries become booked patients. With marketing taking a growing share of revenue, this decides whether that spend pays off.
- Revenue per week.
- Fixed expenses, kept low.
Frequently asked questions
How profitable is a dental practice in Australia?
A healthy, established dental clinic typically makes a 10% to 20% profit margin before interest, after paying all dentists including a market-rate wage for an owner-dentist. Start-ups and clinics in their early years usually aren't there yet.
How much revenue does a dental chair generate?
In our client base, a chair worked by a dentist generates roughly $500,000 to $1,200,000 a year in gross revenue (lab fees included), for a chair in use 5.5 days a week. A chair worked by an oral health therapist or hygienist generates about half that.
What percentage of revenue should a dental practice spend on wages?
Support staff wages (excluding dentists) typically run at 15% to 25% of revenue. Start-ups can run up to 40%, but if a clinic stays near that level it's a serious warning sign.
How much should a dental practice owner pay themselves?
We generally advise owners to take a salary of 30% to 40% of the owner's own clinical billings, in line with what an associate would be paid. That keeps the clinic's real profit visible.
What should a dental practice owner track every week?
Three numbers: lead conversion rate (how many enquiries become booked patients), revenue per week, and fixed expenses, which should be kept low.
Want this applied to your numbers?
Book a free 30-minute consult. We'll go through where you are now and what we'd do next if we were in your shoes.
Related guides
WeGrow Dental Benchmarks 2026
Income, hourly KPIs, chair revenue, cost ratios and sale multiples from our dental client base.
How much is a dental practice worth?
Multiples, the buyer question, and why records decide the price, with three scenarios.
Payroll tax for dental practices
How the contractor rules work, what changed in QLD and VIC, and how to review your arrangements.
Buying a dental practice
What it costs, how we check the numbers, buying as a non-dentist, and buy-in vs start-up.
Sources
- WeGrow client data: ranges we see regularly across our dental clients, reviewed by Inam Asiful (7 October 2026).
General information only, not tax, financial or legal advice. Figures are ranges from our client base and public sources as at 7 October 2026; your situation will differ. Talk to us before acting on anything here.