At 8.25% over 15 years, a dental practice loan costs about $970 a month for every $100,000 borrowed. An $800,000 loan is about $7,761 a month, or $93,133 a year. An interest-only period lowers early payments to interest alone, about $5,500 a month on $800,000, but the payment rises once principal payments start.
Loan payment calculator
Enter your own loan. The defaults are the Alithos estimator's planning assumptions: 15 years at 8.25%. They are not a quote and not a rate you will be offered. For context, the bank prime rate was 7.00% on October 29, 2026 [3], and the SBA's maximum variable rate on a 7(a) loan over $350,000 is prime plus 3.0%, about 10.0% at that prime [2][3]. That is a ceiling, not a typical rate. 8.25% sits between the two.
(unchecked, the term is extended by the interest-only months)
| End of year | Remaining balance | Principal paid to date |
|---|---|---|
| 1 | $771,817 | $28,183 |
| 2 | $741,218 | $58,782 |
| 3 | $707,998 | $92,002 |
| 4 | $671,931 | $128,069 |
| 5 | $632,773 | $167,227 |
Planning math, not a loan offer. Fixed rate, monthly payments, no fees or points.
How is a dental loan payment calculated?
A standard practice loan is fully amortizing. You pay the same amount every month, and each payment covers that month's interest plus a slice of principal. Early on, most of the payment is interest. By the end, most of it is principal.
In words: take the monthly rate (the annual rate divided by 12), multiply it by the loan amount, then divide by one minus the discount factor for the number of months. The calculator does this for you. The inputs that drive it are only three: how much you borrow, the rate, and the number of months you have to pay it back.
On the default $800,000 loan, the first payment of $7,761 is about $5,500 of interest and $261 of principal. That is why the balance table above falls slowly at first. After five years you have paid about $466,000 in payments and still owe about $633,000. If you plan to relocate, refinance or sell in that window, the remaining balance matters as much as the payment.
A calculator like this one gives you the bank's side of the math. To see whether the practice can carry it, run the same loan through the DSCR calculator, which tests the payment against your cash flow and the 1.25x coverage many dental lenders look for as a guideline [4].
How much is the payment on common loan sizes?
All rows use the Alithos planning assumptions of 8.25% and 15 years. The last column multiplies the annual payment by 1.25, the coverage benchmark many lenders use, to show roughly how much cash flow the practice needs to carry that loan alone.
| Loan amount | Monthly payment | Annual payment | Total interest | Annual payment × 1.25 |
|---|---|---|---|---|
| $500,000 | $4,851 | $58,208 | $373,126 | $72,761 |
| $600,000 | $5,821 | $69,850 | $447,752 | $87,313 |
| $700,000 | $6,791 | $81,492 | $522,377 | $101,865 |
| $800,000 | $7,761 | $93,133 | $597,002 | $116,417 |
| $900,000 | $8,731 | $104,775 | $671,627 | $130,969 |
| $1,000,000 | $9,701 | $116,417 | $746,253 | $145,521 |
| $1,250,000 | $12,127 | $145,521 | $932,816 | $181,901 |
| $1,500,000 | $14,552 | $174,625 | $1,119,379 | $218,282 |
Where does your loan amount come from? In the Alithos planning model, a 4-5 operatory startup in leased space at standard finish runs about $746,000 to $980,000 all-in, including $85,000 of working capital. That is planning math, not a quote. The dental practice startup costs guide breaks the total into categories, and the cost estimator builds it from your operatory count and finish level. A loan sized from a real line-item budget produces a payment you can defend.
How does an interest-only period work?
During an interest-only period you pay the month's interest and nothing else. On $800,000 at 8.25%, that is $5,500 a month instead of $7,761. The balance does not go down. When the period ends, principal payments start and the payment jumps.
How much it jumps depends on one detail, which is why the calculator has a checkbox for it.
| Interest-only months | Payment after, inside a 15-year term | Total interest, inside | Payment after, term extended | Total interest, extended |
|---|---|---|---|---|
| 0 | $7,761 | $597,002 | $7,761 | $597,002 |
| 6 | $7,897 | $607,143 | $7,761 | $630,002 |
| 12 | $8,045 | $617,480 | $7,761 | $663,002 |
| 18 | $8,204 | $628,016 | $7,761 | $696,002 |
| 24 | $8,377 | $638,752 | $7,761 | $729,002 |
Inside the term: the loan still ends at 15 years, so the principal is squeezed into fewer months and every later payment is higher. Term extended: the amortizing payment stays the same, but you pay interest-only months on top, so total interest climbs faster. Either way, interest-only costs more over the life of the loan. Ask each lender which version it offers.
The case for it: a startup's collections take time to build, and early cash is the scarcest thing you have. Twelve months of interest-only on $800,000 saves about $27,000 of payments in year one ($93,133 down to $66,000). The cost: about $20,000 more total interest inside the term, or $66,000 more if the term is extended, plus a higher payment later. It buys time. It does not replace a working capital reserve.
When I build a plan, I test coverage on the full amortizing payment, not the interest-only payment. If the practice only works while the payment is $5,500, it does not work.
How does a draw schedule affect early payments?
Startup and build-out loans usually do not fund all at once. The lender pays out money in draws as construction and equipment milestones are reached. During that period, interest generally accrues only on the amount drawn so far, not on the full loan.
That means early payments can be well below the full interest-only figure. If $300,000 of an $800,000 loan has been drawn, a month's interest at 8.25% is about $2,063, not $5,500. The payment then steps up with each draw. Ask the lender three things: when interest starts, whether it is paid monthly or added to the balance, and on what date the full amortizing payment begins. Put the real dates in your cash-flow plan. A plan that assumes payments start after opening, when they actually start at closing, is short on cash before the first patient. The dental practice financing guide covers how draws, construction loans and the takeout work together.
How do rate and term change the payment?
Here is an $800,000 loan at three rates and two terms. The rates are illustrations to show sensitivity, not quotes and not what any lender charges.
| Illustrative rate | 10-year payment | 10-year total interest | 15-year payment | 15-year total interest |
|---|---|---|---|---|
| 7.25% | $9,392 | $327,050 | $7,303 | $514,523 |
| 8.25% | $9,812 | $377,465 | $7,761 | $597,002 |
| 9.25% | $10,243 | $429,114 | $8,234 | $682,037 |
Two things stand out. First, term moves the payment more than rate: going from 15 to 10 years adds about $2,050 a month at 8.25%, while a full point of rate adds about $470. Second, the shorter term saves real interest, about $220,000 at 8.25%. A startup usually needs the lower payment early. Ask whether the loan allows extra principal payments without a penalty, so you can pay it down faster once the practice is stable.
Term limits also depend on what the loan pays for. Under the SBA 7(a) program, maturities run up to 25 years for real estate and generally up to 10 years for equipment and working capital [1][2]. Conventional dental lenders set their own terms. For how lenders weigh the rest of your file, read what dental lenders actually want.
I am not a lender, a broker or a CPA, and I take no fees from lenders. If you want the loan sized from a line-item budget and tested against coverage before you apply, that is what the Budget Plan does. Start with a free Project Fit Call.
Dental loan payment FAQ
What is the monthly payment on an $800,000 dental practice loan?
About $7,761 a month at 8.25% over 15 years, fully amortizing. That is $93,133 a year and about $597,000 of interest over the life of the loan. At 7.25% it is about $7,303; at 9.25%, about $8,234. These rates are illustrations, not quotes.
How long are dental practice loans?
It depends on the lender and what the loan pays for. Under the SBA 7(a) program, maturities run up to 25 years for real estate and generally up to 10 years for equipment and working capital. Conventional dental lenders set their own terms. The Alithos estimator assumes 15 years as a planning figure.
Is an interest-only period a good idea for a startup?
It can be, if you use it to protect cash during the ramp and you plan for the higher payment that follows. It is not free money. It raises total interest and, if the term does not extend, raises every amortizing payment. Budget the full payment from the month it starts.
Does the payment include working capital?
Only if working capital is part of the loan amount you enter. The Alithos estimator includes $85,000 of working capital in its all-in total. If your working capital comes as a separate line of credit, its payments are separate and need their own row in your budget.
How does the rate affect my payment?
On $800,000 over 15 years, each 1 percentage point moves the payment by about $460 to $475 a month. Term matters more: the same loan over 10 years at 8.25% is about $9,812 a month, roughly $2,050 more than over 15 years, but it saves about $220,000 of interest.
Is this calculator a loan offer?
No. It is planning math. Only a lender can quote a rate, term or payment, and each lender sets its own. I am not a lender, and I take no referral fees from lenders. Use the calculator to know your number before you apply.
New to the terms on this page? See the dental practice planning glossary, or browse all calculators.
Sources
- U.S. Small Business Administration, "Terms, conditions, and eligibility," 7(a) loan program (accessed 2026). sba.gov
- U.S. Small Business Administration, "7(a) loans" (accessed 2026). sba.gov
- Board of Governors of the Federal Reserve System, "H.15 Selected Interest Rates" (release of October 30, 2026). federalreserve.gov
- ADA News, M. Jerkins, "Ask the Expert: How much debt is too much when buying a dental practice?" (2026). adanews.ada.org
- Alithos Advisory, cost benchmark and estimator assumptions (2026). alithos.co
Every figure on this page comes from a cited source, is computed with standard amortization math, or is labeled as an Alithos planning assumption. Rates are re-checked when the page is updated. How we research and update this page.