{
  "slug": "lab-fee-margin",
  "title": "Dental/Vet Lab Fee Margin Calculator",
  "heading": "Lab Fee Margin Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/lab-fee-margin",
  "summary": "True margin on crowns, dentures, and other outsourced lab cases.",
  "description": "Restorative and prosthetic procedures that rely on an outside lab look profitable on the fee schedule until the lab invoice, chair time, and remake risk are factored in. This calculator takes the patient fee for a lab-dependent procedure, subtracts the lab bill and a remake reserve, and divides the remaining margin by chair time to show true profitability per hour, which is often lower than a simple exam or hygiene visit despite the higher sticker price.",
  "formula": "Net margin = fee − lab cost − (remake rate × lab cost); margin per hour = net margin ÷ chair hours used.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=lab-fee-margin",
  "inputs": [
    {
      "id": "fee",
      "label": "Patient fee for procedure",
      "kind": "number",
      "hint": null,
      "default": 1400,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "labCost",
      "label": "Lab invoice cost",
      "kind": "number",
      "hint": null,
      "default": 250,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "remakeRate",
      "label": "Historical remake/redo rate",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 50
    },
    {
      "id": "chairHours",
      "label": "Chair time for procedure",
      "kind": "number",
      "hint": null,
      "default": 1.5,
      "unit": "hours",
      "min": 0.1,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "netMargin",
      "label": "Net margin per case",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "marginPct",
      "label": "Margin as % of fee",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "marginPerHour",
      "label": "Margin per chair-hour",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "remakeReserve",
      "label": "Remake reserve applied",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Patient fee for procedure: 1400 $",
      "Lab invoice cost: 250 $",
      "Historical remake/redo rate: 6 %",
      "Chair time for procedure: 1.5 hours"
    ],
    "outputs": [
      "Net margin per case: $1,135.00",
      "Margin as % of fee: 81.1%",
      "Margin per chair-hour: $756.67",
      "Remake reserve applied: $15.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter patient fee for procedure ($).",
      "Enter lab invoice cost ($).",
      "Enter historical remake/redo rate (%).",
      "Enter chair time for procedure (hours).",
      "Read your net margin per case on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "fee": 850,
        "labCost": 150,
        "remakeRate": 4,
        "chairHours": 0.8999999999999999
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "fee": 1400,
        "labCost": 250,
        "remakeRate": 6,
        "chairHours": 1.5
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "fee": 2250,
        "labCost": 400,
        "remakeRate": 10,
        "chairHours": 2.4000000000000004
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why include a remake reserve if the lab redoes bad cases for free?",
      "a": "Even when the lab covers a remake at no additional cost, you lose the chair time and staff labor for a second appointment. Building a remake rate into the margin calculation gives a more honest picture of expected profitability across a batch of similar cases rather than the best-case single outcome."
    },
    {
      "q": "How do in-house milling systems change this math?",
      "a": "Same-day CAD/CAM crowns replace a lab invoice with equipment amortization and material cost, which is usually lower per unit once the system is paid off, but chair time often increases for the design and mill cycle. Run both scenarios through this calculator with your actual per-unit material cost to compare."
    },
    {
      "q": "What margin per hour should restorative work target?",
      "a": "Most practices aim for restorative and prosthetic procedures to match or exceed their general hygiene chair's per-hour rate, typically $200-$350/hour net. If a lab case nets meaningfully less than that, either the fee needs adjusting or the lab relationship needs renegotiating."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/dental-chair-production",
    "https://www.revenuelab.fyi/toolbox/insurance-write-off-adjustment",
    "https://www.revenuelab.fyi/toolbox/surgery-block-profitability"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Dental/Vet Lab Fee Margin Calculator (https://www.revenuelab.fyi/toolbox/lab-fee-margin)"
}