A recent article published in the Academy of General Dentistry’s (AGD) April issue of AGD Impact encourages dentists to learn how to calculate the return on investment (ROI) before purchasing equipment for their practice. The article’s author, Wesley W. Lyon II, CPA, CFP, urges dentists to take a more strategic, data-driven approach to equipment purchases.

A common industry narrative encourages dentists to purchase equipment primarily for tax advantages. Instead, Lyon emphasizes that thoughtful return on investment (ROI) analysis, patient experience and long-term practice growth should guide purchasing decision. The purchase “should lead to increased referrals and increased profits.”

A section in the article provides a strategic common sense purchasing approach to calculating ROI for equipment that is used to cut costs or increase production. For more complex purchasing and measuring of ROI there are more advance calculations that include assumptions, benefit and cost calculations.

Key considerations in the article include:

• ROI should lead decision-making: Dentists are encouraged to calculate whether equipment will generate measurable revenue or cost savings before purchasing.
• Patient experience remains essential: Investments such as digital scanners, intraoral cameras and AI-enhanced imaging can improve patient understanding, satisfaction and treatment acceptance.
• Not all purchases are profit-driven: Some equipment is necessary to maintain modern standards of care or improve clinical outcomes, even if it does not produce immediate financial return.
• Production and efficiency gains matter: Equipment that reduces chair time or eliminates follow-up visits can create significant revenue opportunities.
• Financing decisions are critical: Dentists should carefully evaluate loan terms, avoid misleading “0% financing” offers and be cautious of lease-to-own agreements with high implied interest rates.
• Avoid overpromising sales tactics: Expensive equipment marketed as a quick path to practice growth—particularly in areas like esthetics or sleep dentistry may not deliver expected returns without proper infrastructure and patient demand.

The AGD Impact article encourages dentists use the same rigor they do to other areas of their practice when purchasing equipment, including aligning with overall practice strategy, based on data and focused on long-term value and growth.

AGD members can read the entire article visit: agd.org