A provider’s daily production goal backs out from the practice’s overhead and profit target. Required production = costs to cover plus profit, divided by clinical days.
The example
$540k overhead + $160k profit, 200 days.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 700,000 / 200 | — |
| 3 | Daily goal | → $3,500 |
The formula
The formula:
How it works
How it works:
- Total annual overhead — staff, rent, lab, supplies, the dentist’s pay.
- Add the profit target — what the practice should net.
- Divide by clinical days for the daily production goal.
- Divide further by collection ratio if the goal is stated in collected dollars.
The goal is a break-even-plus-profit, not a wish. Because overhead is largely fixed, every clinical day has to produce a defined amount just to cover costs — and more to hit profit. Dividing the annual number by actual clinical days makes the target concrete and schedulable. If you measure in collected dollars, divide the production goal by your collection ratio so the schedule targets cash, not just charges.
Try it: interactive demo
Overhead, profit target, clinical days.
Variations
In collected dollars
Adjust for collection:
Hourly goal
Per chair hour:
Monthly goal
Days × goal:
Pitfalls & errors
All overhead. Include the dentist’s compensation in overhead.
Clinical days. Use real working days, not calendar days.
Production vs collection. Divide by collection ratio for a cash goal.
Practice workbook
Frequently asked questions
How do I calculate a daily production goal in Excel?
How do I state it in collected dollars?
What goes in overhead?
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