Optometry Practice Model
Healthcare Financial Model (Free Excel Download)
Plan optometry-practice performance from exams, optical sales, contact lenses, payer mix, provider capacity, staffing, inventory, equipment capex, and practice cash flow.
professionals from Deloitte
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About this model
This model helps you plan an optometry practice or a group of locations. It connects eye exams, medical care, eyewear, contact lenses, and vision plans to the people and costs required to deliver those services.
Use it to assess growth, a new location, or an acquisition. The summary shows how patient demand, pricing, and service mix flow through to profitability, cash flow, and value.
What every model includes
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
What's inside the Optometry Practice Model
- Center inputs: Year-1 centers, new centers per year, encounters per center, optometrists per center, average encounter fee
- Utilisation: Year-1 utilisation with an annual ramp and a practical ceiling
- Service mix: eye exams, eyewear, contact lenses and medical eye care shares, per-tier price indices and net margins
- Ancillary: members per center and annual vision plan fee, accessories spend per encounter, price escalation
- Cost structure: optometrist and support comp and wage with benefits and wage growth; facilities and occupancy, marketing, technology and SG&A as % of gross profit; depreciation (% of revenue); tax
- Capital and working capital: maintenance capex %, center build-out cost per center, NWC % of revenue growth, base-year revenue
- Valuation: WACC, terminal growth, net debt, shares outstanding
- Operations sheet: center roll-forward, utilisation ramp, encounters per center, total encounters, staff headcount, encounters per optometrist
Optometry Financial Model: How the Template Works
This optometry financial model builds a seven-year forecast for a multi-location optometry and eyewear group combining professional eye care with optical retail. It connects a center roll-forward and chair-hour capacity to visit volume, splits revenue across billable exams, medical care, eyewear, contact lenses, vision plan memberships and accessories, then carries the result through to profit, cash flow and valuation.
Centers, Chair Capacity and the Visit Engine
Volume starts with centers, and the model separates closing centers from effective centers.
- Closing centers drive staff headcount, occupancy and the plan book's panel ceiling, while effective centers weight each year's new openings by a first-year output fraction so a ramping site contributes less than a seasoned one.
- Mature visits per center are capped by chair capacity: optometrists per center times chair hours per OD divided by chair time per visit, with the lesser of that capacity and typed demand used.
- A utilisation factor starting at the Y1 input and stepping up by fixed percentage points each year then scales mature visits to total patient visits.
Revenue Build and the Optical Dispensary
Professional revenue is assembled tier by tier: billable exam, contact lens and medical visits each multiply the average visit fee by that tier's price index, with indices blended so the weighted index returns to one.
- Eyewear is treated differently, because a dispense is an attach on a refraction rather than a visit tier.
- Dispenses equal exam visits times the capture rate, the share of prescriptions kept in-house rather than lost to online or warehouse retailers.
- A second-pair attach adds promotional eyewear, and a remake and warranty rate routes non-adapt returns through at full material cost with no revenue.
Costs, Margins and Contribution
Every tier margin is materials only.
- Exams consume drops and consumables, medical work uses diagnostic consumables, contact lenses pass through at a thin spread, eyewear carries frame and lens product cost, and memberships and accessories carry fulfilment and goods costs.
- Because optometrist and optician labour is charged separately in the operating expense stack, gross margin runs high and contribution after clinical labour is the line that matters.
- Occupancy is a fixed per-center charge escalated at the rent step-up, while marketing, technology and corporate SG&A are geared to revenue, allowing EBITDA margin to expand as utilisation and pricing lift revenue per center.
Cash Flow, Valuation and Practical Use
Unlevered free cash flow is NOPAT plus depreciation, less maintenance capex and de novo build-out capex, less the change in working capital, with inventory, frames and receivables tying up cash as revenue grows.
- The terminal year is normalised so reinvestment equals depreciation and the working capital call is rebased to terminal growth before a Gordon-growth terminal value is applied.
- The DCF produces enterprise value, then equity value and value per share after net debt, alongside a net-debt roll-forward that charges interest on the income statement.
- The preview download shows values only, not live formulas.
Formatted to IB standards
Named theme colors repaint the whole workbook in one click, on top of an investment-banking structure with clear input, output, and cross-sheet reference styling - brand-ready, institutional-grade, and fully auditable.
Created by ex-finance professionals
Hey, I’m Alex and I created Finamodel.
Over my years in the finance industry I kept building the same models over and over again. Same structure, same assumptions, different logo. So I started building frameworks to turn them into clean, reusable templates.
Every model here is one I’d actually use for a client, and I personally vet each one before it goes up.
I’m not an expert in every industry, but I’ve built enough models to know what belongs in one. And when something is completely foreign to me, I reach out to my network for experts to work on our models with us.
Having a template library on hand cuts a first build from hours to minutes.
Need help finding your model? You’ll find me in the Finamodel app!
Frequently asked
What is an optometry financial model?+
An optometry financial model captures the seven-year operating economics and intrinsic value of a multi-location optometry and eyewear group that runs eye exams and medical eye care alongside eyewear dispensing, contact lens supply, recurring vision plan memberships and an accessories retail attach. It rolls a vision-center count forward, converts a capacity-utilisation ramp into total encounters, prices encounters across a four-tier service mix at a blended average fee and price index, runs the high-gross-margin optometrist-heavy cost stack to EBITDA, and discounts an unlevered free-cash-flow stream to enterprise value, equity value, and value per share.
How is optometry revenue built?+
Revenue is driven by the vision-center estate and its utilisation: total encounters equal closing centers times encounters per center times a utilisation factor that ramps to a ceiling, and service revenue splits those encounters across an eye-exam, eyewear, contact-lens and medical-eye-care mix, each priced at a blended average fee times a per-tier price index. Center-driven vision plan memberships and encounter-driven accessories retail layer on to total revenue.
Why is the service mix so important?+
A professional eye exam, an eyewear dispense and a contact lens supply each carry very different price points and product economics, so the realised fee per encounter and the blended margin both fall out of the mix rather than the raw encounter count. The model makes the per-tier price indices and net margins explicit so an analyst can flex the mix and pricing and watch revenue per encounter, gross profit and EBITDA move together.
Why an unlevered DCF instead of an EBITDA multiple?+
An optometry group still builds out and equips each location with exam lanes and diagnostic gear and carries eyewear inventory, so EBITDA overstates cash. The model bridges to unlevered free cash flow, NOPAT plus depreciation, less maintenance and build-out capex, less the change in working capital, and discounts it at a WACC, then adds a Gordon-growth terminal value. The implied EV/EBITDA falls out as a sanity check rather than as the valuation input.
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