What Are Variable Costs in a Dental Practice?
Variable Costs are expenses that increase or decrease in direct proportion to production or patient volume.
In a dental practice, this includes:
- Lab fees
- Dental materials and consumables
- Associate pay (if % of revenue)
- Payment processing fees
- Some marketing tied to new patients
The more you produce, the more you incur these costs —
but if left unchecked, they silently erode profit.
Why Variable Costs Matter for Dental Practice Owners
Many dentists think,
“More revenue = more profit.”
But if variable costs scale too fast — or aren’t monitored — profit can plateau or decline despite growth.
Example:
| Month | Revenue | Variable Costs | Net Profit |
| Jan | £80,000 | £30,000 (37.5%) | £15,000 |
| Mar | £100,000 | £45,000 (45%) | £12,000 |
DentPulse flags these shifts — so you stop chasing top-line growth that reduces take-home income.
Common Variable Costs in Dentistry
| Category | Examples |
| Lab Fees | Crowns, bridges, aligners (Invisalign, Reveal) |
| Materials | Composites, gloves, masks, impression kits |
| Associate Pay | % split on revenue for self-employed clinicians |
| Finance Fees | Patient plan fees (e.g. Denplan admin) |
| Software per Case | iTero scan charges, imaging licenses |
| Credit Card Fees | 1.5%–3% on patient payments |
Variable costs are not inherently bad — they just need to be measured, optimised, and scaled profitably.
How DentPulse Tracks and Optimises Variable Costs
| Feature | Function |
| Profit-to-Pocket™ (PPP™) | Shows how variable cost % affects your take-home income |
| Treatment Profitability Module | Breaks down variable cost per treatment type |
| Lab/Material Benchmarking | Compares against top 25% of practices by stage and structure |
| Real-Time Alerts | Flags spikes in associate pay or lab fees |
| Revenue Goal Calculator | Adjusts targets based on your true variable cost ratio |
DentPulse helps you grow smart — not just grow big.
DentPulse Tip™
High revenue hides low margins.
Variable costs expose the truth.
If your associate or lab costs go up when revenue rises — but profit doesn’t — DentPulse will show you why.
Related Glossary Terms
- Fixed Costs – Do not change with production (e.g. rent, salaries)
- Gross Profit Margin – Revenue minus variable costs
- Treatment Profitability – Variable costs broken down per procedure
- Associate Pay Structure – A major driver of variable cost
- Revenue Goal Formula – Based on optimised variable cost assumptions
Glossary Summary Table
| Term | Meaning |
| Variable Costs | Expenses that change based on production or patient volume |
| Purpose | Understand cost dynamics and protect profit as you grow |
| Financial Impact | Directly affects margin, take-home pay, and target revenue |
| DentPulse Advantage | Tracks real-time % of revenue, auto-benchmarks, and links to PPP™ |
