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How Much Do Dentists Really Get Paid?

If you're thinking about going into dentistry or if you're already a dentist, you may want to know what your income potential really looks like. In this video, we're going to highlight the different stages of dentistry, from a new graduate to practice ownership and even those who want to take it a step further and own multiple practices. Keep in mind that these numbers are only estimates and can vary based on several factors.

Before we get started, if you're new here, I'm Dr. Jeff Anzalone, a periodontist on a mission to help you get out of the rat race with passive income.

If you'd rather watch the video instead, check it out below:

New Graduate

Let's start off with the new graduate. This is someone right out of dental school, the first stage of a dentist's career. The average billing for a new graduate is around $250 to $300 per hour. Based on this average billing, they can expect an income range of anywhere from $140,000 to roughly $180,000 annually. These figures, based on studies from the American Dental Association (ADA), can be higher or lower depending on various factors.

It's important to remember that these numbers factor in part-time dentists as well. A part-time dentist's income may not align with your particular career path. Income potential can shift significantly if you choose to work more hours or relocate to an area with higher demand for dental services.

For example, a dentist I know took a job in a less populated area with high demand right after graduating. His take-home income for the first year was over $300,000, which is rare for a new graduate. Generally, a new graduate in the right location and practice can expect to make an average of about $150,000 a year.

Established Associate

As you continue from the new graduate phase and gain more experience, you move on to the next stage: the established associate phase. Dentists in this phase have roughly two to five years of practice, which enables them to perform more procedures and earn more money. Some of these dentists take courses to become more proficient in molar root canals, complex aesthetic cases, placing dental implants, removing third molars, and even IV sedation.

The average billing for this phase is around $400 to $500 per hour. In this stage, you can expect to make anywhere from $180,000 to $400,000 plus annually. The average income for an established associate is about $250,000 a year. In the U.S., it's common for a dental associate to be paid 35% of their collections. To make this average salary, a dentist would need to bill about $700,000 annually, which translates to producing about $2,800 a day over 250 working days a year.

Practice Ownership

Finally, we move on to practice ownership. This is often considered the pinnacle of earning potential in dentistry but comes with its challenges. When I first started, I rented space from an endodontist, sharing staff and equipment. Once I moved out and became my own boss, I quickly realized how demanding practice ownership could be. No one teaches you how to run a practice, hire or fire employees, manage payroll, make tax payments, or deal with other business aspects.

However, there are great benefits to owning your own dental practice. You have complete control over the types of treatments offered and how they are delivered. You can also hire hygienists to work for you, which increases your earning potential.

Let's look at some numbers. Overhead is a significant factor, including employee salaries, supplies, equipment, and day-to-day costs. Typically, overhead ranges from 50% to 70% of a single practice's revenue. According to the ADA, the average dentist owner bills around $742,000 annually. With a 60% overhead, this would net roughly $300,000 per year. However, it's not uncommon for practice owners to take home over $400,000 or $500,000 annually.

Owning Multiple Practices

The real magic starts when you own multiple practices. A friend of mine, who is younger than me, owns 10 dental practices. These are mainly associate-run, allowing him to be present only if he chooses. Owners of multiple associate-run practices can expect to take home roughly 20% of the total billing. For example, if someone owns five practices that each collect $1 million annually, they would net about $1 million a year.

Owning multiple practices does come with its challenges, such as managing multiple offices and staff, but the potential earnings can be substantial. The more successful your practice or practices become, the more you can potentially earn. Dentistry offers various ways to make money, whether you work part-time as an associate or own multiple practices without treating patients.

Remember, if you own a practice, it is also an income-producing asset that you may want to sell at some point, providing another stream of income to your portfolio.

Conclusion

There you have it: the three stages of dentistry and what you can expect to make at each stage. If you're interested in learning about the seven habits I learned after interviewing hundreds of millionaire dentists, watch this video"