The Budget Plan is a $7,500–$10,000 flat fee, with the exact fee and scope set in writing before work starts. It delivers your space requirements, a line-item equipment and imaging budget, build vs. lease vs. condo projections, Section 179 and tax modeling, cash-flow and debt-service coverage analysis, and a lender-ready package. Most are completed in 3–5 weeks.
A dental office project is one of the biggest financial decisions a dentist makes, and most of the free help on offer comes from people who are paid by the project itself. The Budget Plan is the one document built by someone paid only by you. Your lender, your contractor and your equipment rep all work from the same numbers.
Who is the Budget Plan for?
I build Budget Plans for three kinds of projects. The questions are different, but the core one is the same: what will this really cost, and will the practice carry it?
De novo startups
You are ready to own your first practice. You haven't toured a showroom or signed a letter of intent yet, and you want one honest number first. Startups don't have production history, so the plan models from verified benchmarks and your target market. For the full picture of what goes into a first office, see the dental practice startup costs guide.
Relocations and rebuilds
Your lease is up in 12–24 months, or the space stopped fitting years ago. You have real production data, which makes the plan sharper. The question becomes how much new space and equipment that production justifies, and what the new facility asks of the schedule.
Ground-up builds
Land, shell, finish-out, equipment and contingency. This is the largest version of the decision and the one with the most moving parts. The plan prices the ground-up path next to leasing and buying a condo so you can see the difference before anyone shows you a rendering.
The best time to start is before you sign anything: the letter of intent, the lease, the equipment order or the loan application. The plan is worth the most when nothing is committed yet. If you have already signed a lease, it can still check the decisions that remain.
What is in the Budget Plan?
Seven deliverables, each built from your data and checked against verified ranges rather than one vendor's quote.
1. Space requirement analysis
Operatory count, square footage and growth room, sized from production math. The Alithos estimator starts at 500 sq ft per operatory for 3–5 ops, 450 for 6–7 and 425 for 8 or more, then I adjust to your plan.
2. Line-item equipment and imaging budget
Every chair, delivery unit, sterilization line and imaging system priced as a line item. The model's starting points are $42,000 per op standard or $58,000 premium, and $60,000 for sensors and pano or $130,000 with CBCT.
3. Build vs. lease vs. condo projections
All three paths side by side: shell and finish-out, cabinetry, soft costs and contingencies, plus the monthly facility cost each path creates. More on the logic in build, lease, or condo.
4. Section 179 and tax modeling
How equipment and improvement purchases may be depreciated, by tax year and by state. These are planning numbers for your CPA to confirm. I am not a CPA and this is not tax advice.
5. Production targets and cash flow
The production your new facility demands, month by month through ramp-up, with working capital sized to carry you until collections catch up.
6. Debt-service coverage analysis
Your projected cash flow divided by total debt payments, tested against the 1.25× coverage lenders commonly look for. If the plan doesn't clear it, you hear that plainly, with the options: wait, shrink or restructure.
7. Lender-ready package and working session
Everything bound into one document your bank underwrites from, your contractor bids against and your equipment rep quotes against. Then a working session, so you can defend every number in any room.
On construction, the model uses $170 per sq ft for a standard lease finish-out and $220 for premium, and $340 to $420 for ground-up. A 2026 dental lawyer's guide puts leasehold build-outs at $150 to $350 per sq ft and ground-up at often $400 or more [1]. So the model's lease rates sit inside the published range, and its ground-up rates are on the conservative side of published ranges. Your market may run higher, which is exactly why the plan replaces model rates with your local numbers.
On equipment, the same guide puts a standard build at often $100,000 to $200,000 [1]. The model's 4 to 5 op standard figure ($168,000 to $210,000) is consistent with that. Imaging is a separate decision, and the CBCT choice alone moves the model by $70,000. See whether CBCT belongs in your startup budget.
On tax, the numbers change every year, so the plan names the tax year it uses. For tax years beginning in 2026, the federal Section 179 limit is $2,560,000, reduced dollar for dollar once qualifying purchases pass $4,090,000 [2]. States can differ sharply. California, where I am based, limited Section 179 to $25,000, phasing out above $200,000 of purchases, and did not follow federal bonus depreciation in the FTB's 2025 instructions [3]. This is general education, not tax advice: confirm with your CPA what applies to you and to the tax year you file. To see the federal math on your own figures first, try the Section 179 calculator.
What does the starting model look like?
Before your data goes in, the plan starts from the same model behind the online cost estimator. Here is that model for a 4-operatory startup in leased space at standard finish. It is planning math, not a quote. Its job is to show the structure your Budget Plan fills in with real numbers.
| Line item | Model assumption | Model amount |
|---|---|---|
| Space | 4 ops × 500 sq ft | 2,000 sq ft |
| Construction (lease finish-out) | $170 per sq ft | $340,000 |
| Cabinetry | 10% of construction | $34,000 |
| Soft costs | 12% of construction | $40,800 |
| Equipment | $42,000 per op | $168,000 |
| Imaging | Sensors + pano | $60,000 |
| IT and furniture | $45,000 + $3,000 per op | $57,000 |
| Working capital | Estimator default | $85,000 |
| Total project | Point estimate (range ±5%) | $784,800 ($746K–$824K) |
| Monthly debt service | 15 years at 8.25% | $7,614 |
| Annual payments × 1.25 | 1.25× coverage test | $114,205 |
That last line is the one lenders care about. In this model, the practice needs about $114,205 a year of cash flow available for debt service just to clear 1.25× on the project loan. The Budget Plan rebuilds every line above from your space, your quotes, your market and your production, then runs that test on the real figure. The full table by operatory count, path and finish level is on the 2026 cost benchmark.
How does the process work?
The process is published in full. Six phases, each with a deliverable you keep.
- Vision of success What you want to produce, how you want to practice and what the office must do for your life, before a single square foot is drawn. Deliverable: vision and goals brief.
- Practice data intake The Trust & Verify questionnaire: production, new-patient flow, schedule pressure, lease status. Existing practices bring six months of real numbers; startups model from verified benchmarks. Deliverable: baseline data file.
- Space and equipment program Operatory count and square footage from production math, not showroom enthusiasm. Then a line-item equipment budget priced against verified ranges, not one dealer's quote. Deliverable: space program and equipment budget.
- Project cost modeling Build, lease or condo side by side: shell and finish-out, cabinetry allowances, contingencies, soft costs. Deliverable: build vs. lease vs. condo model.
- Trust, then verify The stress test: debt-service coverage against 1.25×, Section 179 and tax math, and the production increase the new facility demands. If the numbers say wait, shrink or restructure, we talk about it honestly. Deliverable: DSCR and tax analysis.
- The lender-ready package Everything bound into one document, plus a working session so you can defend every number. Deliverable: the Budget Plan.
How long does it take?
Most Budget Plans are completed in 3–5 weeks from kickoff. The biggest variable is data. If your production reports, collections, lease status and any quotes arrive in the first week, the plan moves quickly. If we are waiting on a landlord's draft or a second site, it takes longer, and I tell you where it stands.
Here is what helps at kickoff:
- Your goals for the practice and the project: production, schedule and how you want to practice
- Existing practices: about six months of production and collection data, plus current lease status
- Startups: your financial picture and target market
- Anything already on the table: equipment quotes, a letter of intent, a lease draft or a floor plan
- The name of your CPA and attorney, so the plan reaches them in a form they can use
What does it cost?
The Budget Plan is a flat fee of $7,500–$10,000. The exact fee depends on your project's scope, and you see it in writing before any work starts. No commissions or referral fees come from anyone, in either direction. On the model's 4-op lease startup above ($746K–$824K), the fee works out to about 0.9% to 1.3% of the project.
If you are not sure the project is ready, start smaller. The Feasibility Check is a $2,500 flat-fee go / no-go screen, and that fee credits toward the Budget Plan. If you want owner-side advisory after the plan, through independent quote review, design review against the budget and change-order review, Project Navigator starts at $20,000 and is quoted per project. Availability depends on your project's state and is confirmed before engagement.
| Service | Fee | What it answers |
|---|---|---|
| Feasibility Check | $2,500 flat; credits toward the Budget Plan | Is this project ready? Space and site fit, a high-level equipment budget range, a DSCR pre-check against 1.25× |
| The Budget Plan | $7,500–$10,000 flat fee, scope in writing | What will it cost, line by line, on each path, and will the practice carry it? |
| Project Navigator | From $20,000, quoted per project | The Budget Plan plus owner-side advisory through opening. Availability depends on your project's state; confirmed before engagement. |
Compare all three on the services overview, or read what dental startup help costs in general.
Will my lender accept it?
No one can promise a loan approval, and I won't. What I can do is build the package to match what dental lenders underwrite: total project cost with line-item support, cash-flow analysis and debt-service coverage.
The 1.25× coverage test matters because lenders use it. One dental lender writing in ADA News describes a debt-service coverage ratio of at least 1.25 as a guideline, not a strict minimum [4]. Lenders set their own terms. If you are using an SBA loan, the program has its own rules: the 7(a) maximum is $5 million [5], and under SBA SOP 50 10 8 a startup generally needs an equity injection of at least 10% of total project cost [6]. The plan shows those numbers for your project so there are no surprises at underwriting.
I am not a lender or a loan broker, and I take nothing from any lender. That is the point: the same package can go to several lenders, and you compare their terms on a level field. For the lender's side of the table, read what dental lenders actually approve and the dental practice financing guide.
How does the Budget Plan compare with free dealer design or design-build?
Most dentists get planning help from someone already at the table. That help can be good. The difference is who pays for it and what the scope covers.
| Question | The Budget Plan | Free dealer design | Design-build firm | Doing it yourself |
|---|---|---|---|---|
| Who pays for it? | You, a flat fee | Margin on the equipment order | Profit on the build it scopes | Your time |
| Independent operatory count? | Yes, from production math | Drawn by the team selling the equipment | Drawn by the team that builds it | Only if you size it from production |
| Line-item equipment budget? | Yes, against verified ranges | One dealer's quote | Varies by firm | Only if you gather comparable quotes |
| Build vs. lease vs. condo comparison? | Yes, all three paths | Not usually in scope | Often focused on the path it builds | Only if you model all three |
| DSCR test at 1.25×? | Yes | Not usually in scope | Not usually in scope | Only if you run it |
| Lender-ready package? | Yes, with a working session | Varies | Varies | You assemble it |
None of this makes dealers or builders dishonest. Their help is tied to what they sell, and a good one works faster with a client who already has a verified budget. More on that in what "free" dealer design really costs, and the delivery-method question in design-build vs. design-bid-build.
What the Budget Plan is not
The Budget Plan is owner-side advisory and budget planning only. I am not a licensed contractor, architect, engineer, real estate broker, lender, attorney, CPA or investment adviser, and I don't sell equipment, construction, real estate or loans. Tax figures are educational planning numbers for your CPA to confirm. Your attorney reviews any lease or contract before you sign. You keep your own team, and the plan gives all of them the same verified numbers.
The plan is also not a quote or a bid. Your contractor and your dealer still price the work. The difference is that they now price it against a budget you understand.
Budget Plan FAQ
How much does the Budget Plan cost?
The Budget Plan is a flat fee of $7,500 to $10,000. The exact fee is set in writing, based on your project's scope, before any work starts. If you start with the $2,500 Feasibility Check, that fee credits toward the Budget Plan. No commissions or vendor money sit behind any line of it.
What is included in the Budget Plan?
Seven deliverables: a space requirement analysis, a line-item equipment and imaging budget, build vs. lease vs. condo cost projections, Section 179 and tax modeling for your CPA to confirm, production targets and cash-flow analysis, a debt-service coverage analysis, and a lender-ready package with a working session to walk through every number.
How long does a Budget Plan take?
Most Budget Plans are completed in 3 to 5 weeks from kickoff. The main variable is how quickly your production, collection and financial data can be gathered. Startups model from verified benchmarks instead of practice history.
Will my bank accept the Budget Plan?
No one can promise a loan approval. The package is built to match what dental lenders underwrite: total project cost with line-item support, cash-flow analysis, and debt-service coverage tested against the 1.25× benchmark lenders commonly look for. Your lender makes its own credit decision.
Do you replace my CPA or attorney?
No. I am not a CPA, attorney, contractor, architect, broker or lender, and I do not give legal, tax or investment advice. The tax modeling is a set of planning numbers for your CPA to confirm, and your attorney reviews any lease or contract before you sign. The plan gives your whole team the same numbers.
What do you need from me to start?
Your goals for the practice and the project, and your numbers. Existing practices bring about six months of production and collection data plus current lease status. Startups bring their financial picture and target market. Any quotes, letter of intent, lease draft or floor plan already on the table help too.
More answers on the full FAQ.
Want a first look before we talk? Run the cost estimator for your op count and path. When you want the real number built on your data, book a free Project Fit Call. It's 30 minutes, by video, with no pitch.
Sources
- Dental & Medical Counsel (A. Oromchian), "A Dental Lawyer's Guide to Your Dental Office Build-Out" (2026). dmcounsel.com
- IRS, Rev. Proc. 2025-32 (2025), section 4.24. irs.gov
- California Franchise Tax Board, 2025 Instructions for Form FTB 3885A (2025). ftb.ca.gov
- ADA News, "Ask the Expert: How much debt is too much when buying a dental practice?" (2026). adanews.ada.org
- U.S. Small Business Administration, 7(a) loans (accessed 2026). sba.gov
- Starfield & Smith, "Best practices: equity injection requirements under SOP 50 10 8" (2025). starfieldsmith.com
- Alithos Advisory cost estimator and 2026 benchmark table (planning model, not survey data). alithos.co
Model figures on this page are Alithos planning assumptions, not quotes or survey data. Market figures are cited to their publishers. How we research and update this page.