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Practice Loan Calculator

Estimate monthly payments, total interest, and amortization for purchasing or financing an optometry practice.

Loan Details

10.0% of purchase price

Adds the SBA 7(a) guarantee fee (2% for loans under $1M, 2.77% for larger loans)

Results

Monthly Payment

$5,224.88

Loan Amount$450,000.00
Total Interest Paid$176,985.79
Total Cost$626,985.79

Remaining Balance

YearBalance
Year 1$417,780.75
Year 5$263,866.93
Year 10$0.00

This calculator provides estimates for planning purposes. Consult a financial advisor or lender for actual loan terms.

Typical Practice Financing

  • SBA 7(a) loans: Up to $5M, 10-25 year terms
  • Conventional bank loans: Usually require 10-20% down
  • Seller financing: Often available as part of a deal

Related

Open roles

Browse associate & partner-track optometry openings

Salary data

Optometrist & ophthalmology pay by state and setting

Salary data

Practice manager pay (the team you'll inherit)

Estimates only. The numbers produced by this tool are for general information and do not constitute financial, legal, tax, or career advice. They may be inaccurate or out-of-date. Consult a qualified professional before making decisions based on these outputs.

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.