Practice Loan Calculator
Estimate monthly payments, total interest, and amortization for purchasing or financing an optometry practice.
This calculator provides estimates for planning purposes. Consult a financial advisor or lender for actual loan terms.
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Practice acquisition financing — FAQ
What does an optometry practice cost to buy?
Independent optometry practice purchase prices typically run $300,000-$1,500,000 depending on collections, EBITDA multiple, location, and equipment included. Practices are usually valued at 60-80% of trailing-twelve-month gross collections, or 2.5-4x adjusted EBITDA, with smaller / lower-margin practices anchoring the lower end and high-EBITDA multi-OD groups stretching the upper.
What's the difference between a conventional and an SBA 7(a) loan for a practice purchase?
Conventional bank loans for healthcare acquisitions typically require 10-20% down, run 7-10 year terms, and price at prime + 1-3%. SBA 7(a) loans go up to $5M, allow 10% down (sometimes lower), and run 10-25 year terms but layer in an SBA guarantee fee (2-3.75% of the guaranteed portion) plus packaging fees. The lower SBA monthly payment from the longer amortization usually beats conventional even after fees, especially for first-time buyers.
How much should an OD put down on a practice purchase?
SBA 7(a) requires a minimum 10% equity injection, but most lenders prefer 15-20% on healthcare acquisitions because it improves cash-flow coverage ratios. Buyers without that down payment can sometimes structure seller carrybacks (5-10% of price held by the seller as a subordinated note) to reach the lender's equity threshold without fully self-funding.
What's the typical debt service coverage ratio (DSCR) lenders want?
Healthcare acquisition lenders typically require a 1.20-1.35 DSCR — meaning the practice's adjusted EBITDA after the new owner's compensation must cover the new debt payment by 1.2x to 1.35x. The calculator can help you back-solve to see what loan size your projected EBITDA actually supports.