How much down payment do I need to buy a dental practice?

On an SBA 7(a) loan, plan on 10 percent down. Since October 1, 2026, that minimum is firm for a buyer from outside the practice, though an associate who has worked there two years or more and buys all of it may qualify for less. Conventional dental lenders set their own terms, and some advertise up to 100 percent financing.

How is a dental practice loan payment calculated?

Lenders use a standard amortization formula. The loan amount, the monthly interest rate and the number of monthly payments set one fixed payment that covers both interest and principal. For example, $765,000 over 10 years at 10 percent works out to about $10,110 a month, or $121,314 a year, with about $448,000 of interest over the life of the loan.

What interest rate should I enter in the dental loan calculator?

Use a lender's quote if you have one. Otherwise, start with the SBA's cap: on 7(a) loans over $350,000 it's the prime rate plus 3 points, which was 10 percent with prime at 7.00 percent in October 2026. Conventional dental lenders set their own rates. Then try a rate 2 points higher to see how much room the deal has.

What is the difference between an acquisition loan and a startup loan?

An acquisition loan buys an existing practice, so the lender underwrites it on that practice's actual collections and cash flow. A startup loan pays for the buildout, equipment and early operating costs of a new office. With no history to go on, lenders lean harder on your projections, credit and experience, and some start with interest-only payments.

Can working capital or a line of credit be included in a practice loan?

Often, yes. SBA 7(a) loans can include working capital along with a change of ownership, and the SBA's 7(a) Working Capital Pilot offers monitored lines of credit. Many banks also offer a separate business line of credit. Ask for enough to cover a few months of operating costs, since insurance payments can lag after a change of ownership.

Can I get a dental practice loan with student debt?

Yes. Dental-specific lenders understand that most new dentists carry significant student loan debt. Underwriters focus primarily on the practice's cash flow (the '60/40 rule') rather than your total debt load. A strong practice with consistent collections can offset high student loan balances.

How long does the dental practice loan approval process take?

SBA loans typically take 45-90 days from application to closing. Conventional bank loans can close in 30-60 days. To speed up the process, have your personal financial statement, tax returns (3 years), and the practice's financial records ready before applying.

What documents do I need for a dental practice loan?

Lenders typically require: 3 years of personal and business tax returns, a personal financial statement, your CV or resume, a letter of intent or purchase agreement, the practice's profit & loss statements, and a business plan or transition narrative. Our team can help you prepare a complete loan package.

Dental Practice Financing
and Loan Calculator

Whether you're acquiring your first practice, building from the ground up or refinancing, we connect you with lenders who specialize in dental practices.

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Dental Practice Loan Calculator

Evaluate cash-flow based lending potential

Acquisition Price

The total purchase price of the practice.

Down Payment

Cash contribution towards the purchase.

Loan Amount

The total capital amount required for the acquisition or project, including working capital.

Rate (%)

Estimated annual interest rate. SBA 7(a) loans over $350,000 are capped at the prime rate plus 3 points: 10% with prime at 7.00% in October 2026. Conventional rates vary by lender.

Term (Yrs)

The amortization period of the loan. 10 years is standard for practice acquisitions.

Collections

The annual gross revenue collected by the practice before any expenses.

$1.2M

Overhead %

Total operating expenses expressed as a percentage of revenue. Typically 55-65% for general practices.

58.3%

Your Annual Pay

What you'll pay yourself each year. Lenders subtract a reasonable salary before they test cash flow. It starts at 20% of collections, about what an associate doing your dentistry would earn, until you change it.

Personal Annual Debt

Sum of your personal annual payments (Home mortgage, student loans, auto loans, credit cards).

Disclaimer: These numbers are estimates. US Dental is not a financial institution and we will be connecting customers to institutions which are qualified to discuss finances.

Est. Monthly Payment

$10,110/mo

Total Interest $448,144

Total Paid $1,213,144

DSCR After Your Pay 2.15x

Practice cash flow after your pay, divided by your loan and personal debt payments. SBA rules require at least 1.25x.

Calculating... Updating metrics

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How to Use the Dental Loan Calculator

Start with the practice's profit and loss statement, not just its asking price. Enter the price and your down payment, and the loan amount fills itself in. For the rate, use a lender's quote if you have one. If not, SBA 7(a) loans over $350,000 are capped at the prime rate plus 3 points, which was 10% with prime at 7.00% in October 2026. SBA purchase loans run up to 10 years, or up to 25 when real estate is part of the loan.

Then add the practice's annual collections, its overhead without your own pay, what you'll pay yourself and your personal debt payments, such as student loans and a mortgage. The calculator divides what's left after your pay by all of those payments. That's the debt service coverage ratio, or DSCR, and SBA rules require at least 1.25x, measured on the practice's actual results rather than projections.

Worked Example: Financing an $850,000 Practice

The calculator opens on the same sample practice we use in our guide on how to value a dental practice. It collects $1.2 million a year, its overhead runs about 58% once the owner's perks are added back, and it's priced at about $850,000, roughly 71% of collections. Here's what financing it looks like with 10% down:

Sample Practice: Financing the Purchase

Purchase price $850,000

Down payment (10%) $85,000

Loan, 10 years at an assumed 10% $765,000

Monthly payment $10,110

Total interest over 10 years $448,144

Practice cash flow before your pay About $500,000

DSCR before your pay 4.1x

Your pay (20% of collections) $240,000

DSCR after your pay 2.15x

These are the calculator's default inputs. Cash flow is collections minus overhead, after add-backs. Lenders' exact formulas vary.

A coverage ratio of 4.1x looks comfortable, but lenders don't stop there. They subtract a reasonable salary for you, about what it would cost to hire an associate to do your dentistry, and they count your personal debts and living costs. After $240,000 of pay, this practice still covers its loan payments 2.15 times, and $36,000 a year of student loan payments only brings that down to about 1.7x. A practice with heavier overhead or a fuller price can drop below 1.25x quickly, so run your own numbers before you make an offer.

The 10% rate is an assumption: it's the SBA's maximum variable rate on a loan this size with prime at 7.00% in October 2026. For what a higher or lower rate does to a purchase, see how rising interest rates affect buying a dental practice.

To compare loan types, read our guide to business loans for dentists, and when you're ready, browse dental practices for sale.

Financing Designed for the Modern Dentist

Buying or starting a dental practice is likely the largest financial transaction of your career. It requires more than a generic small business loan; it demands specialized underwriting that understands the unique economics of dentistry. The value of a practice lies in its patient records, hygiene recall systems, and goodwill—assets that traditional banks often undervalue.

At US Dental Practices, we simplify the lending landscape. We help you navigate the choice between the speed of fintech lenders and the stability of institutional banks. Whether you are an associate carrying student debt or an established owner seeking commercial real estate, our partners utilize 'cash-flow based' underwriting. This means your approval is based on the practice’s ability to produce revenue, not just your personal asset column.

Specialized Financing Solutions

Tailored capital structures for every stage of your dental career.

Acquisition Loans

Secure the capital to purchase an existing general or specialty practice. Our network lenders offer up to 100% financing plus working capital, often with no personal collateral required.

LTV Up to 100% + Working Cap
Terms 10 - 15 Years
Collateral Practice Assets Only

Startup & Construction

From demographic analysis to Certificate of Occupancy. Access 'Graduated Payment' programs that allow for interest-only payments for the first 12-24 months to preserve liquidity.

Structure Interest Only Period
Coverage Equipment + Buildout
Benefits Cash Flow Management

Refinance & Expansion

Optimize your P&L by consolidating high-interest equipment leases. Expansion loans are available for second locations, remodels, or commercial real estate purchases.

Goal Lower Monthly Payment
Use Real Estate / Remodel
Rate Competitive Fixed

Do You Qualify? The "60/40" Rule

Approval for a dental practice loan is rarely based on your credit score alone. In fact, underwriters typically use a '60/40' rule: 60% of the decision is based on the practice's historical cash flow, and 40% is based on your personal financial strength.

Credit Score

A FICO score of 680+ is the standard floor, though 700+ commands the best rates.

Liquidity

Lenders want to see 'post-closing liquidity'—typically $50k in cash reserves.

SBA Loans vs. Conventional Bank Loans

Understanding the key differences helps you choose the right financing structure for your acquisition.

Feature	SBA 7(a) Loan	Conventional Bank Loan
Down Payment	10% minimum, firm for a buyer from outside the practice	Typically 15-25%
Max Loan Amount	$5 million	No cap (bank-dependent)
Term Length	Up to 10 years; up to 25 when real estate is included	5-10 years typical
Interest Rate	Variable rate capped at prime + 3 points on loans over $350,000 (10% at a 7.00% prime)	Varies (often lower base)
Independent Valuation	Required: the lender orders its own, and the loan can't exceed it	Set by the lender
Who Can Borrow	U.S. citizens or nationals living in the U.S.; permanent residents don't qualify	Set by the lender
Approval Timeline	Typically 45-90 days	Typically 30-60 days
Collateral	Practice assets + personal guarantee	May require additional collateral
Best For	First-time buyers, lower down payment	Established buyers, larger acquisitions

SBA terms as of October 2026, under the lending rules that took effect on October 1, 2026 (SOP 50 10 8.1). Sources: SBA 7(a) terms, conditions and eligibility and SBA 7(a) loans. Conventional terms vary by lender.

Questions?

These are the most common questions we get from our clients.

How much down payment do I need to buy a dental practice?: On an SBA 7(a) loan, plan on 10 percent down. Since October 1, 2026, that minimum is firm for a buyer from outside the practice, though an associate who has worked there two years or more and buys all of it may qualify for less. Conventional dental lenders set their own terms, and some advertise up to 100 percent financing.
How is a dental practice loan payment calculated?: Lenders use a standard amortization formula. The loan amount, the monthly interest rate and the number of monthly payments set one fixed payment that covers both interest and principal. For example, $765,000 over 10 years at 10 percent works out to about $10,110 a month, or $121,314 a year, with about $448,000 of interest over the life of the loan.
What interest rate should I enter in the dental loan calculator?: Use a lender's quote if you have one. Otherwise, start with the SBA's cap: on 7(a) loans over $350,000 it's the prime rate plus 3 points, which was 10 percent with prime at 7.00 percent in October 2026. Conventional dental lenders set their own rates. Then try a rate 2 points higher to see how much room the deal has.
What is the difference between an acquisition loan and a startup loan?: An acquisition loan buys an existing practice, so the lender underwrites it on that practice's actual collections and cash flow. A startup loan pays for the buildout, equipment and early operating costs of a new office. With no history to go on, lenders lean harder on your projections, credit and experience, and some start with interest-only payments.
Can working capital or a line of credit be included in a practice loan?: Often, yes. SBA 7(a) loans can include working capital along with a change of ownership, and the SBA's 7(a) Working Capital Pilot offers monitored lines of credit. Many banks also offer a separate business line of credit. Ask for enough to cover a few months of operating costs, since insurance payments can lag after a change of ownership.
Can I get a dental practice loan with student debt?: Yes. Dental-specific lenders understand that most new dentists carry significant student loan debt. Underwriters focus primarily on the practice's cash flow (the '60/40 rule') rather than your total debt load. A strong practice with consistent collections can offset high student loan balances.
How long does the dental practice loan approval process take?: SBA loans typically take 45-90 days from application to closing. Conventional bank loans can close in 30-60 days. To speed up the process, have your personal financial statement, tax returns (3 years), and the practice's financial records ready before applying.
What documents do I need for a dental practice loan?: Lenders typically require: 3 years of personal and business tax returns, a personal financial statement, your CV or resume, a letter of intent or purchase agreement, the practice's profit & loss statements, and a business plan or transition narrative. Our team can help you prepare a complete loan package.

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