Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Mid-point valuation estimate
$8,040,000
Low-end valuation estimate
$6,000,000
High-end valuation estimate
$10,080,000
Implied mid-point multiple
6.7
EBITDA per provider
$200,000
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How to use this
- 1Enter adjusted (normalized) ebitda ($).
- 2Enter low-end multiple for specialty.
- 3Enter high-end multiple for specialty.
- 4Enter number of providers.
- 5Read your mid-point valuation estimate on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Private equity and health system acquisitions of physician practices are almost always priced off a multiple of normalized EBITDA, not revenue, since revenue tells you nothing about profitability across wildly different specialty cost structures. This calculator takes the practice's adjusted EBITDA (net income plus owner compensation above market rate, plus interest, taxes, depreciation, and amortization, minus any one-time or personal expenses run through the practice) and applies a specialty-appropriate multiple range to produce a low-mid-high valuation estimate. Multiples vary significantly by specialty and scale — high-volume, procedure-heavy specialties like dermatology, gastroenterology, ophthalmology, and orthopedics with ASC ownership command higher multiples (often 8-12x EBITDA in platform deals) than primary care or lower-margin cognitive specialties (typically 4-7x). Scale matters too: a single-provider practice generating $400K EBITDA will value at a meaningfully lower multiple than a 15-provider platform generating $6M EBITDA, since buyers pay a premium for scale, de-risked physician dependency, and existing management infrastructure. This is a starting-point estimate only — actual deals also weight payer mix, growth trajectory, real estate ownership, ancillary service lines, and physician non-compete and employment terms, all of which move the final multiple materially from a simple EBITDA-times-multiple estimate.
Worked example
Using the values the calculator loads with:
Inputs
- Adjusted (normalized) EBITDA: 1200000 $
- Low-end multiple for specialty: 5
- High-end multiple for specialty: 8
- Number of providers: 6
Results
- Mid-point valuation estimate: $8,040,000
- Low-end valuation estimate: $6,000,000
- High-end valuation estimate: $10,080,000
- Implied mid-point multiple: 6.7
- EBITDA per provider: $200,000
What each field means
Inputs
- Adjusted (normalized) EBITDA ($)
- The adjusted (normalized) ebitda used in the calculation, measured in $. Starts at 1200000 $ so you have a working example on load.
- Low-end multiple for specialty
- The low-end multiple for specialty used in the calculation. Starts at 5 so you have a working example on load.
- High-end multiple for specialty
- The high-end multiple for specialty used in the calculation. Starts at 8 so you have a working example on load.
- Number of providers
- The number of providers used in the calculation. Starts at 6 so you have a working example on load.
Results
- Mid-point valuation estimate
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Low-end valuation estimate
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- High-end valuation estimate
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Implied mid-point multiple
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- EBITDA per provider
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What EBITDA multiples are common by specialty?
As rough 2023-2024 market ranges: dermatology and ophthalmology platforms 8-14x, gastroenterology and orthopedics with ASC 7-11x, dental and veterinary (comparable dynamics) 6-10x, primary care and multi-specialty 4-7x, and behavioral health 5-9x depending on payer mix and scale. These compress in weaker M&A markets and expand for platforms with strong growth stories.
How do I calculate 'adjusted' EBITDA correctly?
Start with net income, add back interest, taxes, depreciation, and amortization, then add back owner physician compensation above a fair-market-value replacement salary for that specialty (since a new hired physician wouldn't earn what the owner pays themselves), and add back one-time or personal expenses run through the practice like vehicles or excess travel.
Does real estate ownership change the valuation?
Yes — if the practice owns its building, that's typically valued and sold separately from the operating business (often via a sale-leaseback), and shouldn't be embedded in the EBITDA multiple for the practice itself. Keep real estate value and lease terms in a separate line of the deal.
Why does provider count affect the multiple?
Buyers pay up for reduced key-person risk — a single-owner practice is existentially exposed if that physician leaves, retires, or gets sick, while a 10+ provider platform with distributed patient panels and some non-owner leadership is far more resilient, which directly supports a higher multiple in negotiations.
Accuracy and 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.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Medical Practice Valuation Multiple Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/medical-practice-valuation-multiple
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/medical-practice-valuation-multiple" target="_blank" rel="noopener">Medical Practice Valuation Multiple Calculator — RevenueLab</a> (2026).</p>
Source: [Medical Practice Valuation Multiple Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/medical-practice-valuation-multiple) (2026).