What Are Overheads in a Dental Practice?
Overheads are the ongoing business expenses a dental practice must pay to operate — excluding the direct costs of delivering treatment (such as associate pay, lab fees, and materials).
They represent the fixed costs that remain constant regardless of how many patients are seen, such as rent, utilities, staff salaries, and insurance.
Why Do Overheads Matter for Dental Practice Owners?
Overheads are one of the biggest drains on profitability. If they creep up unnoticed, even high revenue can fail to translate into healthy profit.
- High overheads = reduced net profit margin, tighter cash flow, and more financial stress.
- Efficient overheads = lean, scalable, and more attractive practice valuation.
Example:
- Annual revenue: £1,000,000
- Overheads: £400,000
- Overheads as % of revenue = 40%
If this rises to 50%, the practice could lose £100,000 in profit without any change in revenue.
What Are Common Examples of Dental Practice Overheads?
| Category | Examples |
| Premises | Rent, business rates, utilities, repairs |
| Staff (non-clinical) | Receptionists, admin, management |
| Compliance | CQC, indemnity insurance, licenses |
| Technology | PMS, accounting software, DentPulse subscription |
| Marketing & Admin | Advertising, professional fees, stationery |
How Does DentPulse Track and Control Overheads?
| Feature | Function |
| ProfitLeaks Radar™ | Identifies recurring overhead increases or hidden subscriptions |
| PulseBenchmark™ | Compares overhead % to top-performing practices |
| Scenario Planning | Tests impact of overhead changes on profitability |
| Profit-to-Pocket™ Integration | Shows how overheads reduce safe take-home |
DentPulse ensures overheads are measured, benchmarked, and optimised in real time.
DentPulse Tip™
“Revenue growth hides sloppy overheads.
Profit growth demands control.”
Related Glossary Terms
- Fixed Expenses – expenses that don’t change with patient volume
- Variable Costs – associate pay, labs, and materials tied to treatments
- Net Profit Margin – profitability after overheads are deducted
- ProfitLeaks Radar™ – DentPulse tool to detect hidden overhead waste
- PulseBenchmark™ – benchmarks overheads across practices of similar size/stage
Glossary Summary Table
| Term | Meaning |
| Overheads | Ongoing fixed expenses required to run a dental practice |
| Purpose | Show baseline cost of running the practice independent of patients seen |
| DentPulse Advantage | Automated benchmarking + overhead leak detection |
