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1.3.7 How to Calculate the Return on Investment (ROI)

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The return on investment is a ratio between net income and the funds spent on the investment, over a period of time. Applied to a dental clinic, the ROI calculation may predict how long it will take to return the money to the entrepreneur.

The estimation of ROI is based on complex calculations comparing initial costs, earnings, and projected estimate of cost/benefit after making an investment. To achieve the same production end, more than one digital solution is available and can be compared [9].

Return on investment calculations have three aspects.

 Earnings: how much revenue will the investment bring? Will there be an increase?

 Costs: how much will the investment save (time, clinical steps, personnel costs, consumables)?

 With this information mapped, it will be possible to create a break‐even estimation, which is the prediction of when in time the investment will return. Reaching anything more than the break‐even is considered profitable.

Estimations of ROI must take into consideration that after the equipment is acquired, it may require regular maintenance and consumables. Additionally, the obsolescence of the equipment must be included as technology evolves over time and may need to be replaced with new financial investment. Finally, to represent a good inversion, the digitalization of dental care workflows should provide quantifiable advantages in terms of quality, time consumption, and personnel cost reduction. As ROI calculation can be complex, professional advice on these economic aspects should be taken.

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