What Percentage of Revenue Should Go to Dental Staff Wages?
The benchmark for dental staff wages is 24-28% of collections. Here is how to calculate yours and what to do if you are running over.
Staff wages eat more of your revenue than any other single expense, and the 22% average pay increase since 2022 has pushed plenty of practices past the healthy threshold. Let's look at the numbers.
The 24-28% Benchmark Explained
For a well-run general practice, total staff compensation (wages + payroll taxes + benefits) should land between 24% and 28% of collections. That includes every W-2 team member: hygienists, assistants, front desk, office manager, and treatment coordinators.
It does not include the doctor's compensation (owner draw or associate pay). Owner compensation has its own target: 35-40% of collections. Associate pay typically runs 28-35% of their net production.
| Overhead Category | Target % | Notes |
|---|---|---|
| Staff wages (all non-doctor) | 24-28% | Includes payroll taxes + benefits |
| Supplies | 6% | Consumables only |
| Lab fees | 8% | Crown, bridge, denture outsourcing |
| Facility (rent, utilities) | 5-7% | Varies by market |
| Marketing | 4-7% | Higher for startups |
| Total overhead | 55-65% | National median: 62% |
How to Calculate Your Staff Wage Percentage
Pull last month's numbers. Take total staff payroll (gross wages + employer payroll taxes + health insurance contributions + retirement match + any bonuses). Divide by total collections (not production). Multiply by 100.
If you collected $120,000 and total staff costs were $34,800, you're at 29%. That's above target and worth investigating.
$120,000 monthly collections x 26% target = $31,200 staff budget. If you are at $34,800, that is $3,600/month over target, or $43,200/year eating into your take-home. That is real money.
What Drives Practices Over 28%
Three common culprits: (1) Hygienist wages outpacing fee schedule increases, especially in PPO-heavy practices where cleaning reimbursement is stuck at $50-70. (2) Overstaffing relative to production, often from keeping a full team during slow periods. (3) Benefits creep without corresponding production growth.
High-performing practices at 55-60% total overhead tend to run staff wages at 24-25%. They do it through tight scheduling, cross-training, and production-based bonus structures that align team incentives with practice performance.
Fixing a Wage Percentage That's Too High
You've got two dials: increase collections or reduce costs. Increasing collections through better scheduling, reduced no-shows, and higher case acceptance is almost always the better play. Cutting staff during a historic labor shortage usually costs more in the long run (replacement costs run 1.5-2x annual salary).
Start with scheduling efficiency. How many open chair hours do you have per week? Each unfilled hygiene hour costs you $200-$400 in lost production. Fill those first before touching headcount.
Sources: ADA Health Policy Institute Practice Benchmarks 2025, Dental Economics Annual Overhead Survey 2026, Levin Group Practice Analysis.
Related: How Much Does a Dental Hygienist Make in 2026?
