Production & Revenue
- Average Annual Production
- $1,589,000
- Average Case Fee (Braces)
- $6,121
- Average Case Fee (Aligners)
- $6,373
- Contracts Receivable
- 40-50% of collections
- Average Down Payment
- ~$800
Orthodontics
Ortho Financial Benchmarks
Industry-standard financial metrics for orthodontic practices (Source: AAO 2024-2025)
$1.59M
Avg Production/Doctor
~50%
Target EBITDA
50-57%
Target Overhead
Key Financial Metrics
Profitability & Overhead
- Target Overhead
- 50-57%
- AAO Benchmark
- 54%
- Target Profit Margin (EBITDA)
- ~50%
- Case Acceptance Target
- 75%+
- Annual Starts (Average)
- 287
Practice Valuation Benchmarks
Collections-Based
70-90%
of annual collections
EBITDA Multiple
4-7x
higher than GP (3-5x)
IDSO Partnerships
up to 10x
EBITDA
Overhead Comparison: Ortho vs General
Orthodontic Target 50-57%
General Dental Target 59-62%
Ortho practices have lower overhead due to fewer consumables, more predictable treatment plans, and efficient patient flow systems.
Source: AAO Economics Survey 2024-2025, Gaidge Analytics, Bentson Copple & Associates
Reading Your Ortho Financials
Orthodontic practices operate on a fundamentally different financial model than general dentistry. Revenue is recognized over the course of treatment rather than at the point of service, which means a high case-start month does not translate to an immediate collections spike. Tracking both contract value and collections on a monthly basis gives you a cleaner picture of practice health.
Overhead in the 55–60% range is achievable in orthodontics because the procedure mix is more predictable and supply costs are lower than a GP practice. If your overhead is running above 62%, the most common culprits are excess clinical staffing relative to chair utilization, high marketing spend without a clear cost-per-start metric, or a rent situation that made sense at a lower production volume.
Practice valuation typically runs 60–80% of annual collections for a well-run ortho practice. The key variables are contract value per new patient, percentage of in-house vs. referred cases, doctor dependency, and growth trend over the prior three years. A practice showing 10%+ year-over-year growth will command a premium multiple.
For context on what drives case volume, review your exam-to-start conversion rate monthly. An ortho practice converting fewer than 65% of exams to starts has a presentation or follow-up gap — the marketing is working, but the hand-off is losing cases.
FAQ