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