Value to Household for Practice Owners
Owner Compensation Calculator

Value to Household for Practice Owners

Your salary is only part of what your practice gives you. Add up everything that reaches your household, see your real hourly rate, and get a rough idea of what the practice could sell for.

2Your practice and time

Use one full year of numbers.

3Pay and benefits the practice gives you

Annual amounts.

Payroll taxes on your salaryAuto-filled at 8% of salary. The 8% covers the employer half of Social Security and Medicare (7.65%) plus an estimate for workers' compensation and unemployment insurance.

4Expenses the practice covers for you

Annual amounts the practice pays that you'd otherwise pay yourself.

Your results

Value to household (V2H)
0%
of total practice revenue reaches your household
Value to household
$0
Net profit
$0

Effective hourly rate
$0
Salary, payroll taxes and benefits
$0
Family wages and real estate principal
$0
Expenses covered
$0
Subtotal of all owner value
$0
Profit
$0
Value to household
$0

Estimated sale value

Estimated range
$0
Profit
$0
Less revenue you generated personally
$0
Adjusted profit
$0

See your results

How this is calculated

Value to household (V2H)
(Subtotal of all owner value + profit) ÷ total practice revenue. The subtotal includes your salary, payroll taxes, benefits, non-essential family wages, real estate principal and every expense the practice covers for you.
Payroll taxes
Payroll taxes are estimated at 8% of W-2 wages: the employer half of Social Security and Medicare (7.65%) plus a small allowance for workers' compensation and unemployment insurance. Override it if you know your actual figure.
Don't double count
Owner distributions are paid out of profit, so they're already counted. Only list expenses here that are already deducted before profit.
Effective hourly rate
Value to household ÷ (hours per week × weeks worked per year).
Estimated sale value
Adjusted profit = profit − revenue you generated personally. The adjusted profit is multiplied by a range based on its size: under $250K, 0.5–1x; $250K–$500K, 2–3x; $500K–$1M, 3–5x; $1M and up, 5–7x. Actual offers depend on payer mix, staff retention, growth, location and deal terms.

These figures are planning estimates, not tax, legal, accounting or investment advice.