How much does it cost to start a dental practice?

A new dental practice typically costs $350,000 to $750,000, making it one of the most expensive healthcare businesses to start. The largest expense is dental equipment, with a single operatory costing $50,000-$100,000 to equip. Many dentists finance 80-100% of startup costs through specialized dental practice loans with favorable terms.

Should I start a new dental practice or buy an existing one?

Buying an existing practice costs similar to starting new ($300,000-$700,000) but comes with an immediate patient base and cash flow. Starting from scratch gives you a modern office and no legacy issues, but building a patient base takes 2-3 years. Most dental consultants recommend purchasing if you can find a practice in your target market.

How long until a new dental practice is profitable?

Most new dental practices take 18-36 months to reach profitability. A dentist seeing 10-15 new patients per month can expect to break even around month 18-24. Once established, dental practices average 30-40% overhead on collections, making them among the most profitable healthcare businesses.

Dental Practice Startup Cost Comparison

Missoula, MT vs Chicago, IL

Missoula, MT

$304,000 - $753,000

COL Index: 108.5

Chicago, IL

$330,000 - $827,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Missoula, MT	Chicago, IL	Difference
Business Formation & Dental Licensing	$3,000 - $12,000	$5,600 - $12,000	-15%
Commercial Lease (First + Last + Security)	$11,500 - $43,000	$23,500 - $88,000	-51%
Dental Equipment & Technology	$150,000 - $350,000	$150,000 - $350,000	Same
Dental Supplies & Materials	$10,000 - $30,000	$10,000 - $30,000	Same
Dental Office Build-Out	$57,000 - $142,500	$69,000 - $172,500	-17%
Malpractice & Business Insurance (Annual)	$8,000 - $20,000	$8,000 - $20,000	Same
Marketing & Patient Acquisition	$10,000 - $25,000	$10,000 - $25,000	Same
Working Capital (3-6 Months)	$54,300 - $130,200	$53,900 - $129,400	+1%
Total Estimated Cost	$304,000 - $753,000	$330,000 - $827,000	-9%

Local Market Factors

Factor	Missoula	Chicago
Cost of Living Index	108.5	107.8
Commercial Rent ($/sqft/yr)	$14 - $30	$25 - $65
Labor Rate Index	0.95	1.15
Sales Tax	0%	10.25%
Minimum Wage	$10.30/hr	$15.80/hr
LLC Filing Fee	$70	$150

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