Monthly Recurring Revenue for Dentists: How to Create Predictable Cash Flow With Plans, Packages & Prepayment

You’re tired of chasing daily production just to keep the lights on.

Every month starts at £0. Staff, labs, and loans don’t.

Recurring revenue isn’t just about growth. It’s about predictable cash — and breathing room.

Let’s break down how the smartest dental practices are using plans, prepayments, and packages to stabilise cash flow and fund growth — without increasing refund risk or admin chaos.

Why You Can Trust This

As a Chartered Accountant and Dental CFO, I’ve helped over 80 UK practices model and grow recurring revenue streams — from simple hygiene plans to advanced aligner packages. We track the timing, flow, and ECFTI™ impact inside DentPulse — in real time.

TL;DR – Why MRR Matters

• Monthly recurring revenue smooths cash inflow, protects liquidity, and reduces overreliance on daily production
• The best models are hybrid: a mix of plans, prepay, and time-bound packages
• Growth is safest when recurring inflow supports fixed outflow (rent, salaries, loan servicing)

Real-World Win: How MRR Saved a Practice in February

In 2023, a mixed £1.1M practice in Birmingham had two NHS associates off sick and 14 treatment cancellations in February.

But they didn’t panic. Why?

They had £18.7K in recurring plan income land on the 1st. That covered salaries, rent, and loans — without needing emergency funds.

💬 Lesson: Predictable inflow = stable operations, even in rough months.

What Is MRR in a Dental Practice – and Why Does It Matter?

MRR = Monthly Recurring Revenue. In dentistry, it comes from:

• Hygiene or membership plans (via Denplan, Practice Plan, or your own in-house system)
• Prepaid aligner or implant packages
• Payment plans (in-house or third-party like Tabeo or Chrysalis)

Not sure what ECFTI™, PPBT™, or MRR really mean?
Visit the DentPulse Glossary for simple definitions.

MRR Helps Cash Flow Because:

• It lands consistently (e.g. 1st of the month)
• It isn’t tied to chair time (unlike daily production)
• It reduces timing mismatch between income and fixed costs

MRR vs Non-MRR: Timing Impact

Tip: The more fixed your costs, the more you need fixed inflow to match.

 Which Model Works Best – Plans, Packages, or Prepay?

Each has pros and pitfalls. Here’s how they compare:

Recurring Revenue Model Matrix

Best Practice: Blend plans + packages. Use MRR to fund fixed costs. Use one-off cases to build profit.

How Do I Grow MRR Without Creating Refund or Admin Headaches?

To build recurring revenue safely, follow the MRR Buffer Strategy™:

MRR Buffer Strategy™

1. Forecast MRR Into Your Cash Calendar
   Add MRR to your 13-week forecast and match it to outgoings.
2. Track Deferred Delivery Carefully
   For prepaid treatments, monitor how much work is owed vs cash collected.
3. Use Auto-Reconciliation Tools
   Use software (like DentPulse) to track plan payments vs delivery, so refund risk is flagged early.

💬 Truth: Predictable cash is only useful if it’s monitored and matched.

Case: A £760K private practice in Bristol built £11.2K/month in recurring plans in 6 months. They flagged unused packages at 3 months – refunded £2K proactively – and avoided chargebacks or complaints.

MRR Works – But Rising Clinical Costs Can Still Erode Your Cash Flow

While recurring revenue stabilises cash flow, rising lab and material costs can quietly erode profits if unchecked. Understanding how these costs impact net income ensures your MRR actually translates into retained cash and protects your practice during slow or high-cost months.learn how to track and manage these expenses to protect your practice’s cash flow.

MRR is only one piece of the puzzle. To fully safeguard your practice, it’s critical to see the bigger picture of cash flow- including inflows, outflows, and seasonal pressures — so you can plan, forecast, and operate without stress even when revenues fluctuate.MRR smooths income, but true financial stability comes from understanding the full picture of cash flow — discover our complete guide to managing inflows, outflows, and seasonal fluctuations.

Your Next Steps

1. DIY Route

• Forecast plan income by week
• Compare to fixed cost timing
• Manually reconcile deferred treatment plans

2. Download the MRR Forecasting Toolkit

Use our Excel template to model plans, packages, and pay plan inflows.

3. Automate With DentPulse

DentPulse:

• Tracks MRR by plan type
• Links income to fixed cost obligations
• Alerts you when unused treatments create refund risk

Predictability. Protection. Peace of mind.

Final Words: Predictable Cash Flow Is Built, Not Hoped For

MRR isn’t just smart — it’s stabilising.

From what I’ve seen across dozens of high-performing practices — the ones with MRR aren’t just profitable. They’re calm.

Want to simulate your practice’s MRR and cash calendar instantly?
👉 Book a walkthrough demo here.

FAQ: Monthly Recurring Revenue (MRR) in Dental Practices

1. What is monthly recurring revenue (MRR) in a dental practice?

MRR stands for Monthly Recurring Revenue — predictable income that comes in on a set schedule, regardless of daily production.

In dental practices, MRR typically comes from:

• Membership or hygiene plans
• Prepaid aligner or implant packages
• Third-party or in-house payment plans

Unlike one-off treatments, MRR helps smooth income and cover fixed costs like rent, staff salaries, and loan repayments. 

2. Why is recurring revenue important for dental practice cash flow?

Recurring revenue:

• Stabilises inflow even when the diary is light
• Reduces reliance on chair time
• Cushions cash flow during sick leave, cancellations, or holidays

For example, a £1.1M mixed practice in Birmingham avoided panic during February disruptions thanks to £18.7K in plan income landing on day 1.

3. How do I grow monthly recurring revenue without creating refund or admin risk?

Use the MRR Buffer Strategy™:

• Forecast MRR into your 13-week cash calendar
• Track delivery status on prepaid packages
• Use tools (like DentPulse) to alert you when refunds may be due

Predictable cash only protects your practice if it’s matched to delivery. 

4. Are MRR payments taxable when received or when treatment is delivered?

If your practice uses accrual accounting (most limited companies do), revenue is recognised when treatment is delivered, not when payment is received.

That’s why tracking deferred delivery is critical — especially for prepaid aligner or implant cases. DentPulse automatically separates cash received from income earned to give you an accurate profit and tax picture.

5. Do I need software to manage MRR, or can I do it manually?

You can track MRR manually using:

• PMS exports for plan payments
• Xero or QuickBooks for reconciliation
• A spreadsheet to forecast plan inflows vs delivery status

But software like DentPulse automates this:

• Tracks plan income by category
• Links to fixed cost outflows
• Flags unused packages that may need refunds

Most practices save 4–6 hours/month using DentPulse for MRR tracking. 

6. What’s the difference between Denplan, Practice Plan, and in-house membership plans?

These are all ways to generate monthly recurring revenue (MRR) — but they differ in setup, control, and fees:

DentPulse tracks plan type by category, helping you compare net income, refund exposure, and ECFTI™ impact across providers.