Real-Life Math -- Solution
The United States Offer
At a rate of 19 percent,
your United States salary of $55,000 US would convert to:
$55,000
US x 1.19 = $65,450 Cdn
Student loan payments:
$1,037.92
x 12 months per year = $12,455.04 annually
Which leaves
you with:
$65,450 - $12,455.04 = $52,994.96 Cdn
You
would have a net income of $52,994.96.
The Canadian
Offer
To be as financially viable, either a joint practice or
a single practice must produce the same income or higher than the American
salary.
Single Practice
A single optometrist practice
would gross $300,000 annually with 16.8 percent profit:
$300,000
x 0.168 = $50,400 income
Out of this you would have to
pay equipment costs:
$658.65 x 12 months per year = $7,903.80
(annually)
You also have to subtract the student loan of $12,455.04.
That leaves you with:
$50,400 - $7,903.80 - $12,455.04 =
$30,041.16 Cdn
You would have a net income of $30,041.16.
Joint
Practice
If you were in a joint office, you'd gross $300,000 annually,
with 33.6 percent of that being profit:
$300,000 x 0.336
= $100,800
Minus equipment:
$100,800
- $7,903.80 = $92,896.20
And the student loan:
$92,896.20
- $12,455.04 = $80,441.16
You would have a net income
of $80,441.16.
Well, it looks like partnership is the best financial
option. However, there would be many other options to consider when making
such a decision, such as the number of hours worked as an employee versus
self-employment and lifestyle choices.
An ability to do math is essential,
says optometrist Peter Rozanec. You'll need good grades in math, biology,
chemistry and physics classes to get into an optometry program, just as you
would need to get into medicine or dentistry programs.
"Math is also
needed in prescribing medications and doing assessments."