Orthodontic Practice Affordability Calculator — Acquisition & Equipment Financing

If this monthly payment fits within 20–30% of your projected practice revenue, you're likely in an affordable range—the next step is to contact a lender for a soft-pull rate check with your actual credit profile and financial statements. Note that your final rate depends on credit score, debt-to-income ratio, collateral type, and time in business; the calculator shows an estimate based on typical 2026 orthodontic practice loan rates.

What changes your rate and affordability

• Credit score. Scores above 740 unlock the best SBA 7(a) rates (6.5–8% on practice acquisition); 680–700 typically qualifies at 9–10%; below 680 moves you toward alternative lenders at 11–13% or higher.
• Down payment. A 20% down payment (vs. 10%) reduces your principal, lowers your rate by 0.5–1% on average, and strengthens your debt service coverage ratio—critical for approval.
• Loan term. Extending from 5 to 10 years lowers your monthly payment 40–50% but increases total interest. SBA 7(a) practice acquisition loans max out at 10 years; equipment financing typically runs 5–7 years.
• Debt-to-income ratio. If you're consolidating existing high-interest business debt, a lower ratio (below 43%) improves your odds of approval and rate. Lenders want to see debt service coverage of 1.25× minimum; 1.50×+ secures better terms.
• Time in business. Established practices (24+ months of tax returns) qualify for standard SBA rates; newer practices or turnarounds face 1–2% rate premiums or require additional collateral.

How to use this calculator

• Enter your loan amount. If buying a practice, use the sale price minus your down payment. For equipment (CBCT, digital imaging, chairs), use the total equipment cost minus any cash you're putting down. If consolidating debt, enter the total balance you want to roll into one loan.
• Adjust the rate. Start with the default (9.5%, typical for a mid-profile borrower in 2026). Move it down if you have 740+ credit and 25%+ equity; move it up if credit is under 680 or you're a newer owner.
• Set the term. Most orthodontic practice acquisition loans run 7–10 years; equipment financing, 5–7 years. Longer terms mean lower monthly payments but more total interest.
• Review the monthly payment. This is your baseline debt service. Cross-reference it against your projected gross revenue to confirm affordability—healthy practices carry debt payments at 20–30% of revenue.

Bottom line

Affordability in an orthodontic practice acquisition or equipment purchase is driven by payment relative to revenue, not just interest rate. If this calculator shows a payment you can sustain from month one, you're ready to meet with a lender; if not, increase your down payment or extend the term to find a workable number. Your actual rate and approval odds also hinge on how existing business debt impacts your profile—consider consolidating high-interest debt before applying for a major loan to improve your debt service coverage ratio and qualify at the best available orthodontic practice loan rates 2026.