Dental Practice Loan Calculator: Payment on a Practice Acquisition
Work out the monthly payment and total interest on a dental practice acquisition loan — the financing most associate-to-owner transitions and dentist-to-dentist sales use to fund the deal.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $400k · 8% · 10-year (SBA) | $4,853.10 | $182,372.45 | $582,372.45 |
| $800k · 9% · 10-year (large practice) | $10,134.06 | $416,087.43 | $1,216,087.43 |
| $200k · 7.5% · 7-year (smaller) | $3,067.66 | $57,683.03 | $257,683.03 |
| $1.5M · 8.5% · 15-year (group practice) | $14,771.09 | $1,158,796.81 | $2,658,796.81 |
How This Calculator Works
Enter the loan amount (acquisition cost minus down payment), the loan rate, and the term. The calculator turns the rate into one constant monthly payment using the amortization formula and shows total interest paid across the loan.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
A $400,000 dental practice loan at 8% APR over 10 years gives a monthly payment of about $4,853. Total payments come to roughly $582,400 — interest adds about $182,400 over the term. SBA 7(a) acquisition loans require 10% to 15% down (sometimes structured with 5% buyer cash + 5% seller carry), making them the dominant path for first-time practice buyers.
Key Insight
Dental practice acquisition financing favors SBA 7(a) for first-time buyers because of low down-payment requirements (10% to 15% vs 25%+ for conventional), 10-year amortization (vs 5 to 7 years conventional), and acceptance of goodwill as collateral (the practice's patient base, which conventional lenders often won't fund). Specialty dental lenders (Live Oak Bank, US Bank Practice Solutions, Bank of America Practice Solutions) compete on speed and dentist-specific underwriting; SBA loans take 60-90 days but offer the best terms.
Dental practice financing 2024
PRACTICE VALUATIONS.
Established acquisition. $500K-$2M typical.
Multiple: 60-85% of annual collections.
Startup (de novo). $200K-$700K.
Equipment + buildout. $150K-$400K.
Goodwill (75-85% of price typical).
LOAN PROGRAMS.
SBA 7(a): up to $5M, 10-25 yr.
SBA 504: real estate + equipment.
Conventional bank: faster, less paperwork.
Specialty lenders 100% financing common.
BoA Practice Solutions, Live Oak, US Bank, Wells Fargo.
RATES 2024.
SBA 7(a): Prime + 2.25-2.75%.
Conventional: 7-10%.
Down 0-15% typical (lower for specialty).
Acquisition vs startup + tax
ACQUISITION ADVANTAGES.
Immediate cash flow.
Existing patient base.
Trained staff.
Faster ROI.
STARTUP ADVANTAGES.
No goodwill premium.
Build own brand.
Lower initial price.
Slow ramp (12-24 mo to profitability).
SELLER FINANCING.
Often 10-15% of price.
5-7 yr at 6-8%.
Aligns incentives + smoother transition.
TAX.
Equipment + buildout Section 179 + bonus depreciation.
Goodwill amortized 15 yr (Section 197).
Student loan refinancing into practice loan possible.
Practice loan interest deductible.
U.S. dental practice loan benchmarks (2024)
Reference acquisition + startup financing.
| Item | Detail |
|---|---|
| Established acquisition | $500K-$2M |
| Acquisition multiple | 60-85% collections |
| Startup (de novo) | $200K-$700K |
| Equipment + buildout | $150K-$400K |
| SBA 7(a) max | $5M |
| SBA 7(a) rate | Prime + 2.25-2.75% |
| Conventional APR | 7-10% |
| Term | 7-15 yr |
| Down payment | 0-15% |
| Seller financing | 10-15% |
| Goodwill amortization | 15 yr (§197) |
| DSCR requirement | 1.20-1.40 |
SBA 7(a) common dental financing — below-market with guarantee fee. Specialty lenders (BoA, Live Oak) 100% financing. Acquisition faster ROI than startup. Goodwill 15-yr §197 amortization. ADA + SBA + CFPB data.
Frequently Asked Questions
How is a dental practice valued?
Solo general practices typically sell at 60% to 80% of trailing 12-month revenue. Specialty practices (oral surgery, orthodontics, endodontics) often 70% to 100%+. Multi-doctor groups and DSO-attractive practices at higher multiples. Net asset value plus goodwill is the conventional framework.
What's required for SBA 7(a) practice financing?
10% to 15% minimum down (sometimes 5% buyer + 5% seller carry), strong personal credit (typically 680+), some clinical practice experience, and a viable transition plan. SBA also requires a personal guarantee that survives the loan.
Specialty lender vs SBA?
SBA 7(a): best rates and terms, slowest underwriting (60-90 days). Specialty dental lenders (Live Oak, US Bank): faster (30-45 days), often slightly higher rates, more flexible structures. First-time buyers usually benefit from SBA terms; established dentists adding a second location often use specialty lenders for speed.
What if I want to start from scratch?
Build-out and equipment-only loans are also available, but acquisition loans usually have better terms because they're backed by an established cash-flowing business. Most experts recommend acquisition for first-time owners; build for second locations once you have an operating practice as collateral.
Are practice loan payments tax-deductible?
Loan interest is deductible against business income. Principal is not. Goodwill component of acquisition is depreciable over 15 years (Section 197 intangibles); equipment depreciates faster. Combined effect: the loan's effective after-tax cost is materially lower than the pre-tax payment.
When is this calculator unreliable?
Less reliable when SBA 7(a) vs conventional rates (SBA below-market with guarantee fee), when acquisition multiple (1.0-1.5x collections typical), when goodwill vs equipment valuation (amortization schedules differ), when seller financing component (often 10-15%), when student loan refinancing bundled, when Section 179 for equipment, or when practice DSCR requirements (1.20-1.40 typical).
References & Authoritative Sources
- Consumer Financial Protection Bureau (CFPB) — Consumer Lending Resources · consulted June 1, 2026 · Federal consumer protection
- Small Business Administration (SBA) — 7(a) + 504 Loan Programs · consulted June 1, 2026 · Federal small business lender
- American Dental Association (ADA) — Practice Transitions + Financing · consulted June 1, 2026 · Professional association
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source. The starting values for loan rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
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Methodology & Review
Dental practice loan = loan amount × (rate × (1+rate)^n) / ((1+rate)^n − 1). Practice acquisition + startup financing. U.S. 2024: practice acquisitions $500K-$2M typical; startup $200K-$700K; loans 7-15 yr at 6-10% APR; SBA 7(a) up to $5M; specialty lenders (Bank of America Practice Solutions, Live Oak Bank, US Bank). RELIABILITY: Reliable for standard amortization. Less reliable for (a) SBA 7(a) vs conventional rates (SBA below-market with guarantee fee), (b) acquisition multiple (1.0-1.5x collections typical), (c) goodwill vs equipment valuation (amortization schedules differ), (d) seller financing component (often 10-15%), (e) student loan refinancing bundled, (f) Section 179 for equipment, (g) practice DSCR requirements (1.20-1.40 typical).
Reviewed according to the CalcDomain Editorial Policy & Calculator Methodology. We document formulas, edge cases, sources, update dates, and correction paths for calculator pages.
Updated