Question 1

How do I calculate my dental clinic's cost per hour?

Accepted Answer

Add up all your monthly expenses — premises (rent or loan EMI), equipment amortisation, staff salaries, utilities, consumables, and annual costs divided by 12. Divide the total by your monthly patient-facing hours (working days × occupancy hours per day). The result is your true cost per patient-facing hour.

Question 2

What is the difference between operating hours and occupancy hours?

Accepted Answer

Operating hours is the total time your clinic is open. Occupancy hours is the time actually spent treating patients — excluding admin, lunch, and gaps between appointments. Your cost per hour is calculated on occupancy hours because that is the billable time.

Question 3

How is the EMI calculated for a clinic loan?

Accepted Answer

The EMI is calculated using the standard formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months. This gives the correct total monthly outflow including both principal and interest — not just the interest component.

Question 4

What is a typical overhead percentage for a dental clinic in India?

Accepted Answer

For a solo dental practice in India, total overhead typically ranges from 55% to 75% of gross revenue. Premises costs (rent or loan EMI) usually account for 10–20%, staff salaries 20–35%, consumables 8–15%, utilities 3–6%, and equipment amortisation 5–10%. This tool helps you calculate your actual percentage rather than relying on averages, since costs vary widely by city, clinic size, and specialisation.

Question 5

How do I set a break-even fee per patient?

Accepted Answer

Divide your total monthly expense by the number of patients you see per month (working days × patients per day). This gives your break-even consultation fee — the minimum you must charge per patient just to cover costs, before any profit. To add a profit margin, multiply your break-even fee by (1 + desired margin ÷ 100). For example, a 30% margin on a ₹600 break-even fee gives a target fee of ₹780.

Question 6

Should I include equipment amortisation in my overhead calculation?

Accepted Answer

Yes — equipment has a finite lifespan and must be replaced. Divide the total purchase cost of each piece of equipment by its expected lifespan in months to get a monthly amortisation figure. For example, a dental chair costing ₹3,00,000 with a 10-year lifespan adds ₹2,500 per month to your overhead. Ignoring amortisation understates your true cost and leads to under-pricing.

Question 7

What is the what-if sensitivity analysis in this tool?

Accepted Answer

The what-if panel lets you change one variable at a time — such as number of patients per day, occupancy hours, or a specific expense category — and instantly see how your cost per hour and break-even fee respond. This helps you answer questions like 'What happens to my overhead if I reduce staff?' or 'How many extra patients per day do I need to justify a ₹50,000 equipment purchase?' without recalculating from scratch.

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Clinic Hourly Expense Calculator