Skip to content

Free calculator · UK 2026/27 rates

Practice Purchase Affordability Calculator

Enter the normalised EBITDA of the practice you want to buy, choose its mix and region, then add your deposit and financing assumptions. The calculator returns an indicative value range and checks whether the practice profit comfortably covers the repayments.

Calculator

Practice Purchase Affordability Calculator

Enter the normalised EBITDA of the practice you want to buy, choose its mix and region, then add your deposit and financing assumptions. The calculator returns an indicative value range and checks whether the practice profit comfortably covers the repayments.

£

EBITDA after removing principal salary to market rate, personal expenses and one-off items.

£

Your own assumption. Dental acquisition loans vary by lender, practice size and buyer profile.

Indicative total value range
EBITDA covers repayments 8.38x — above the 1.2x rule-of-thumb minimum
Indicative goodwill range£170,000 to £230,000
Tangible assets£60,000
Indicative total value range£230,000 to £290,000
Deposit required (on mid-point)£52,000
Borrowing required (on mid-point)£208,000
Estimated annual repayment£23,853
EBITDA cover ratio8.38x

Indicative valuation only. EBITDA multiples reflect 2025/26 UK dental market ranges; actual multiples vary significantly by buyer type, NHS contract security, CQC position, and local competition. Interest rate and loan term are your own assumptions. The 1.2x cover ratio is a rule of thumb, not a lending requirement. Tangible assets are added at book value; a surveyor or equipment valuer may give a different figure. Not advice; take specialist financial and legal advice before committing to an acquisition.

Sense-check your figure with a specialist dental accountant

Calculators give you a solid starting point, but the final number depends on your NHS Pension status, prior-year reliefs, and how different taxes interact in your specific structure. A short conversation with a dental-specialist accountant puts a firm figure on it, with no obligation.

Step 1 of 2, about you

Step 1 of 2, about you

Go deeper

Get the full Buying a dental practice model and guide

Get the practice purchase model

An indicative value range from EBITDA, then a deposit, borrowing and profit-cover sense-check. Can the practice pay for itself?

Instant access on this page. No spam.

How the calculation works

The valuation range applies EBITDA multiples drawn from 2025/26 UK dental market data, adjusted for practice mix (NHS-heavy practices trade at lower multiples than private-heavy ones, reflecting NHS contract risk and commissioner consent requirements on a transfer), region, and the local buyer demand environment. Goodwill is the multiple applied to normalised EBITDA; tangible assets are added at your stated book value to give the total value range.

The affordability sense-check uses the mid-point of the indicative total value range as the default purchase price, applies your deposit percentage to split the price into equity and borrowing, then runs a standard amortising loan calculation at your stated interest rate and term. The annual repayment is compared to the normalised EBITDA: a ratio above 1.2x means the practice generates at least 20% more cash than the annual debt service, which is a commonly used minimum threshold for dental practice acquisition lending.

This is an indicative tool. Actual loan terms, lender coverage ratios, NHS contract transfer conditions and professional fee costs all affect whether a deal is financeable and on what terms. Always take specialist legal, financial and dental accountancy advice before proceeding.

Worked example: David is buying a mixed NHS and private practice in the Midlands with normalised EBITDA of £200,000 and £60,000 of tangible assets. The indicative valuation range is £230,000 to £290,000 (0.85x to 1.15x EBITDA plus tangibles), giving a mid-point of £260,000. With a 20% deposit (£52,000), David borrows £208,000 at 8% over 15 years. The amortising annual repayment is approximately £23,853, giving an EBITDA cover ratio of 8.38x, well above the 1.2x rule-of-thumb minimum, confirming the deal is comfortably serviceable on paper at these assumptions.

Get the full picture

Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on your NHS Pension status, prior-year usage, other income, and how decisions interact. Take the free practice health check to get a personalised view.