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Mental Health Practice Valuation Calculator

Estimate the value of a mental health group practice from seller's discretionary earnings, a multiple and adjustments for transferability.

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  • Nothing uploaded

The tool

Enter your numbers below. Results update as you type, and nothing leaves your browser.

Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.

What people use it for

  • Planning to sell a practice
  • Buying into a group practice
  • Partner buyouts
  • Retirement planning

About this tool

What the Mental Health Practice Valuation Calculator does

Small mental health practices are usually valued on seller’s discretionary earnings (SDE): profit plus the owner’s pay and personal expenses. Solo practices that depend on the owner’s own clients transfer poorly; group practices with clinicians and referral sources are worth more. This calculator applies a multiple and a transferability adjustment.

Formula

  • SDE = net profit + owner pay + add-backs
  • Transferability = 1 − owner’s revenue share × 60%
  • Value = SDE × multiple × transferability

Worked example

Using the starting values in the calculator above:

Input Value
Annual revenue $900,000
Net profit $120,000
Owner salary and benefits $90,000
Personal and one-off expenses $15,000
SDE multiple 2.2
Revenue from the owner’s own clients 25%
Result Value
Estimated practice value $420,750
Seller’s discretionary earnings $225,000
Transferability adjustment 85.0%
Value ÷ revenue 0.47x

How to read the result

Contracts that keep clinicians on after the sale, and a transition period for the owner, protect value.

Documented referral sources, payer contracts and systems make a practice easier to sell.

An estimate for discussion, not a formal valuation.

Related calculators

Browse every calculator in Healthcare Practice Calculators, or talk to us about healthcare websites and patient acquisition.

Questions

Questions about this tool

The things clients actually want to know — costs, timelines, ownership and what happens after launch.

Commonly as a multiple of seller's discretionary earnings, adjusted for how much value depends on the owner.

Often for modest value, because clients are tied to the therapist.

Clinicians on staff, diversified referrals, strong systems and growth.

Free strategy session

Let’s build something worth finding.

Tell us where you want the business to be in twelve months. We will come back with a costed plan, a realistic timeline, and the numbers we expect to move — no obligation, no jargon.

  • 30-minute call, no pitch deck
  • Fixed-price proposal in 48 hours
  • You own everything we build

Talk to a developer

Not a sales team

Response time
Within 1 business hour
Where we work
UK, USA & the Gulf
Contracts
No lock-in, monthly rolling
Working since
2023
infobestwebdeveloper.org

Free strategy session

Let’s build something worth finding.

Tell us where you want the business to be in twelve months. We will come back with a costed plan, a realistic timeline, and the numbers we expect to move — no obligation, no jargon.

  • 30-minute call, no pitch deck
  • Fixed-price proposal in 48 hours
  • You own everything we build

Talk to a developer

Not a sales team

Response time
Within 1 business hour
Where we work
UK, USA & the Gulf
Contracts
No lock-in, monthly rolling
Working since
2023
infobestwebdeveloper.org
Free consultation