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Calculating the Actual Cost of Dental Procedures


Calculating the Actual Cost of Dental Procedures
Calculating the Actual Cost of Dental Procedures

A Detailed Guide to Calculating Direct and Indirect Costs and Setting Strategic, Profitable Prices


Do you know the true cost of each dental procedure performed at your clinic? Many dentists set their prices based on the competition or gut feelings, without fully considering all the costs involved. This leads to a risky scenario: tight profit margins, hidden losses, and difficulty scaling the business sustainably. To price strategically, the first step is to accurately understand the real cost of each appointment.


The Difference Between Direct and Indirect Costs


Before any calculation, it’s essential to distinguish between two types of costs:


Direct costs are those that can be directly attributed to a procedure. These include:

  • Disposable materials (composite resin, gloves, anesthetics)

  • Chair time of the dentist

  • Commissions (if applicable)

  • Wear and tear on instruments


Indirect costs are shared among multiple appointments and cannot be tied to a specific procedure. These include:


  • Electricity

  • Clinic rent

  • Receptionist salary

  • Practice management software

  • Sterilization, water, and cleaning


Practical example:

 For a filling, the direct cost may be US$ 9 (resin + anesthetic + 40 minutes of dentist time), and the proportional indirect cost could be US$ 6. The total cost would then be US$ 15.


Steps to Calculate the Real Cost of a Dental Procedure


  1. List all fixed monthly expensesAdd up everything the clinic pays monthly, even if no patients are seen — rent, utilities, admin salaries, accountant, cleaning, maintenance, etc.

  2. Calculate the total productive hours per monthEstimate how many hours/month your team actually provides care.Example: 2 dentists working 6 hours/day, 22 days/month = 264 productive hours/month.

  3. Divide fixed costs by total productive hoursThis gives you the indirect cost per hour.Example: US$ 2,640 in fixed costs ÷ 264 hours = US$ 10/hour indirect cost.

  4. Calculate the direct cost of each procedureRecord all materials and supplies used, time spent, and any commissions.

  5. Add direct and indirect costsThis gives you the total actual cost per procedure.


How to Use This Data to Set Strategic Prices


Once you know your real costs, you can apply a fair and sustainable profit margin. Ideally, each procedure should at least cover your fixed costs and generate net profit.


Example:

If a dental cleaning costs you US$ 12 and you want a 100% margin, the final price should be US$ 24. This covers unforeseen costs and contributes to overall clinic profitability.


Practical Tip

Use automated spreadsheets or your clinic’s management software to track cost components and professional time per procedure. This enables regular updates and informed pricing decisions. Avoid relying solely on competitor pricing tables.


Conclusion


Calculating the real cost of a dental procedure isn’t just a bureaucratic task — it’s a vital tool for your clinic’s sustainability. Without cost control, pricing becomes a guessing game. With it, your clinic becomes a financially healthy business that grows safely, rewards its team fairly, and makes smart investments.


Dentists who understand their numbers make better decisions. And it all starts by clearly knowing how much each appointment truly costs.


To learn more about how we can help your clinic or practice become more profitable and sustainable, get in touch with our team!


Senior Consultoria em Gestão e Marketing

Referência em gestão de empresas do setor de saúde

+55 11 3254-7451




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