This article was written by our expert who is surveying the industry and constantly updating the business plan for a veterinarian practice.
Profitability in a veterinarian practice comes from managing pricing, mix of services, labor, and inventory with discipline.
Across 2022–2025, revenue per client rose mainly due to price increases while visit frequency stayed flat or slipped; margins remain strongest in diagnostics and professional services, and lowest in retail.
If you want to dig deeper and learn more, you can download our business plan for a veterinarian practice. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our veterinarian financial forecast.
Below is a quick snapshot of key profitability levers for a veterinarian practice as of October 2025. Use these metrics to build targets, pricing, and staffing ratios before opening.
Benchmarks reflect small-animal general practices in North America and aggregate multiple industry trackers and reports from 2022–2025.
| KPI | 2025 Benchmark / Range | Notes for a New Veterinarian Practice |
|---|---|---|
| Revenue per client per year | $622 (2024–2025); $580 (2023); $543 (2022) | Price drives growth more than visits; build annual value bundles/wellness plans. |
| Active client base | 1,000–1,200 active clients | Assume 1.4–1.6 visits/client/year for planning. |
| Service mix (revenue share) | Services 35–45%, Surgery 15–25%, Preventive 10–20%, Diagnostics 10–20%, Retail 5–15%, Boarding/Grooming 5–10% | Push diagnostics and dentistry to lift blended margins. |
| Gross margin | Overall 45–55% | Diagnostics/lab highest; retail lowest. |
| Labor cost | ~50–60% of operating expenses | Target 1 DVM : 4–5 support staff; monitor revenue per FTE monthly. |
| Revenue per FTE veterinarian | $300k–$600k (median $400k–$500k) | Schedule density and case mix are the main levers. |
| Debt service | ~10–15% of monthly overhead (if financed) | Stress test cash flow with 10–15% fewer visits in slow months. |
What is the current revenue per client per year, and how has it changed over three years?
Average annual revenue per active client in a veterinarian practice is about $622 in 2024–2025, up from $580 in 2023 and $543 in 2022.
This climb reflects roughly 7% year-over-year growth, driven mainly by fee increases rather than more visits. In a typical veterinarian practice, around $499 comes from professional services and $203 from products per client.
Plan your pricing so the blended ticket (exam + diagnostics + preventive) reaches or exceeds $600/client/year within 18 months. Tie this to wellness plans that bundle vaccines, exams, and diagnostics to stabilize spend.
You’ll find detailed market insights in our veterinarian business plan, updated every quarter.
Track this KPI monthly and reset fees at least annually.
What are the main revenue sources, and what percent does each represent?
A veterinarian practice earns most from services, surgery, preventive care, diagnostics, and a smaller share from retail and ancillary services.
The mix below shows a sustainable target structure for a small-animal clinic; adapt it to your location and capabilities. Optimizing the share of diagnostics and dentistry markedly lifts gross margin.
| Revenue Stream | Target Share | Implementation Notes for a Veterinarian Practice |
|---|---|---|
| Medical services (exams, treatments) | 35–45% | Standardize visit templates; add nurse-driven protocols to increase charge capture per visit. |
| Surgery | 15–25% | Block schedule; pre-op bloodwork bundles; price by complexity; monitor utilization weekly. |
| Preventive care (vaccines, wellness) | 10–20% | Offer tiered wellness plans with monthly billing to lock in adherence and retention. |
| Diagnostics/lab (in-house & send-out) | 10–20% | Route cases to in-house analyzers where clinically appropriate to capture higher margins. |
| Retail (meds, food, supplies) | 5–15% | Use online pharmacy/auto-ship; price-match key SKUs to reduce leakage to e-commerce. |
| Boarding/grooming (if offered) | 5–10% | Only add if you can maintain medical standards and protect clinical throughput. |
| Telemedicine/triage | 1–3% | Charge for consults; bundle follow-ups; protect clinician time with protocols. |
How many active clients does a typical clinic have, and how often do they visit?
A new small-animal veterinarian practice should target 1,000–1,200 active clients within 18–24 months.
Expect 1.2–2.0 visits per client per year; model at 1.5 to be conservative. Use reminders, wellness plans, and preventive care calendars to stabilize visit cadence.
Acquisition of 15–30 new active clients per month is realistic with consistent digital marketing and local partnerships. Churn and inactivity will offset part of this inflow, so keep reactivation campaigns running.
This is one of the strategies explained in our veterinarian business plan.
Build your schedule to support seasonal peaks (e.g., spring vaccinations).
What are the fixed monthly costs of running a veterinarian practice?
Fixed costs in a veterinarian practice include facility, salaries, insurance, software, and utilities—these do not move directly with volume.
Use the table to size your baseline overhead before opening and to set a breakeven target in visits per day. Adjust rent and salaries to your local labor and real-estate market.
| Fixed Cost Category | Typical Monthly Amount | Notes Specific to Veterinarian Practices |
|---|---|---|
| Rent / mortgage | $3,000–$7,500 | Corner visibility and parking matter; negotiate TI and rent abatement for build-out. |
| Salaries (base & admin) | Varies; 40–60% of expenses | Anchor team: 1 DVM + 4–5 support FTE; benchmark revenue per FTE monthly. |
| Insurance (liability, property, malpractice) | ~$500+/mo | Annual $5k–$20k depending on coverage and state; revisit limits yearly. |
| Software & tech stack | $500–$1,000 | PIMS, payments, telemedicine, reminders, inventory tools; avoid app sprawl. |
| Utilities | $1,000–$2,000 | HVAC load is higher for clinics; budget for extended operating hours. |
| Licenses & compliance | $150–$400 | DEA, state licensing, medical waste; calendar renewals to prevent lapses. |
| Debt service (if any) | 10–15% of overhead | Structure terms to keep DSCR >1.3 at shoulder-season volumes. |
What variable costs are tied to services and treatments?
Variable costs in a veterinarian practice move with caseload: medical supplies, medications, outside labs, and marketing tied to growth.
Plan them as a percent of revenue to keep margins predictable; track cost of goods weekly for fast correction. The breakdown below is a realistic starting point.
| Variable Cost | Benchmark | Control Actions for a Veterinarian Practice |
|---|---|---|
| Medical supplies & medications | 15–20% of revenue | Tight formulary; reorder points; vendor rebates; avoid dead stock with ABC analysis. |
| Lab fees (send-out) | 5–10% of revenue | In-house first where appropriate; bundle panels; negotiate reference lab pricing. |
| Pharmacy fulfillment fees | 1–3% of revenue | Use clinic-branded e-pharmacy with autoship to retain margin. |
| Medical waste & laundry | ~0.5–1.0% of revenue | Right-size pickups; train staff on segregation to reduce regulated waste volume. |
| Credit card & financing fees | 2–3% of revenue | Offer ACH for membership plans; price in merchant fees on large procedures. |
| Marketing (growth mode) | $1,000–$3,000/mo | Track CAC and new actives/month; pause low-ROI channels quickly. |
| Relief/locum premiums | As needed | Use for peaks; compare to overtime; pre-book to cut premium rates. |
What is the gross margin by service type, vs. industry benchmarks?
Veterinarian practices achieve the strongest gross margins in diagnostics and professional services, moderate in surgery, and the weakest in retail.
Use contribution margin by appointment type to steer scheduling and marketing. The table shows realistic ranges and actions to hold or improve them.
| Service Type | Gross Margin Range | Margin Management in a Veterinarian Practice |
|---|---|---|
| Diagnostics / in-house lab | 50–65% | Optimize analyzer utilization; pre-set panels by protocol; minimize send-outs. |
| Medical services (consults, checkups) | 45–55% | Use nurse-led components; standardized estimates; clear charge capture. |
| Surgery | 40–55% | Case-based pricing; OR block discipline; instrument turnaround to reduce idle time. |
| Dentistry | 45–60% | Bundled dental packages; pre-anesthetic workups; intra-op radiography protocols. |
| Preventive care bundles | 40–55% | Annual plans with monthly billing; adherence lifts lifetime value. |
| Telemedicine | 50–70% | Short, protocolized consults; follow-up conversion to in-clinic services. |
| Retail (food, OTC, meds) | 20–35% | Price-match key SKUs; direct-to-home autoship; keep shelf inventory lean. |
What staffing structure is common, and how do labor costs compare to standards?
- Target a 1 DVM to 4–5 support FTE ratio (techs, assistants, CSR) to maintain throughput without overloading the veterinarian.
- Keep total labor at roughly 50–60% of operating expenses; monitor weekly against revenue swings.
- Build nurse-driven workflows (triage, history, phlebotomy, client education) to expand billable capacity.
- Use cross-training to protect coverage and reduce reliance on premium relief shifts.
- Publish clear role scorecards and daily huddles to maintain schedule density and charge capture.
What is the average revenue per veterinarian and per support staff member?
A healthy veterinarian practice produces $300,000–$600,000 revenue per full-time DVM, with a median around $400,000–$500,000.
Support staff typically generate $80,000–$120,000 revenue per FTE depending on role mix and how nurse-driven the model is. Track revenue per paid hour to catch under-utilization quickly.
Improve DVM leverage by delegating standardized clinical tasks and by increasing diagnostics per visit when clinically indicated. Align compensation with productivity while safeguarding medical standards.
We cover this exact topic in the veterinarian business plan.
Refresh targets quarterly as prices and mix evolve.
What share of appointments are routine preventive care vs. higher-margin specialized procedures?
- Routine preventive care accounts for roughly 60–70% of visits in a typical veterinarian practice.
- Specialized treatments and surgeries represent about 15–25% of caseload but deliver outsized profit per hour.
- Use pre-visit questionnaires to surface diagnostics or dentistry needs during preventive visits.
- Create clinical pathways that bundle diagnostics with symptomatic presentations to lift appropriate utilization.
- Protect half-day surgical blocks each week to maintain procedural throughput.
What is the average client retention rate, and how many new clients join each month?
Annual client retention in a veterinarian practice averages 60–80% depending on market and service model.
New patient growth of 15–30 active clients per month is attainable with consistent reviews, SEO, local partnerships, and referral incentives. Track new actives, reactivations, and churn separately to see true net growth.
Set a 48-hour follow-up protocol for first-time clients to raise second-visit conversion. Automate reminders and membership billing to stabilize retention.
Get expert guidance and actionable steps inside our veterinarian business plan.
Publish your care standards and pricing transparency to build trust.
What level of debt or financing is typical, and how does it affect monthly cash flow?
Veterinarian practices that finance build-out and equipment often carry debt service equal to 10–15% of monthly overhead.
Model debt service coverage ratio (DSCR) at >1.3 in shoulder seasons and >1.5 at peak to stay safe. Include covenants and prepayment options when negotiating loans.
Stress test cash flow at 10–15% fewer visits and 2–3% higher COGS to ensure resilience. Time large inventory buys around seasonal cash inflows.
This is one of the many elements we break down in the veterinarian business plan.
Re-shop rates annually as revenue stabilizes.
What opportunities exist to increase profitability in a veterinarian practice?
- Expand in-house diagnostics and dentistry to shift mix toward higher-margin categories.
- Introduce wellness plans with monthly billing to raise retention and annual revenue per client.
- Optimize pricing annually using fee benchmarks and contribution margin by service.
- Tighten inventory with a formulary, reorder points, and vendor rebates to keep COGS at 15–20% of revenue.
- Improve scheduling density with templated appointments, surgical block time, and confirmation workflows.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further?
Explore practical guides tailored to starting and scaling a veterinarian practice, from valuation to equipment budgeting and revenue tools.
Sources
- AVMA – Less foot traffic, revenue trends
- dvm360 – Visits vs. rising costs
- AVMA – Industry tracker
- Vetsource – Growth and retention
- AVMA – Profitability & benchmarking
- RBTC CPAs – 2025 focus areas
- Businessplan-templates – Running costs
- FinModelsLab – Operating costs
- NectarVet – Clients and visits
- Transitions Elite – Revenue strategies