Professional services
Law Practice Billing Rate Calculator
The hourly rate a solo or small practice has to charge, worked back from income and overhead.
Result
Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and advertising are all governed by the rules of professional conduct where you practise, and several are strict. Check the applicable rules before any of this affects a client agreement or a marketing decision. The billable share is the input most often overstated. Client development, conflicts checking, continuing education, trust reconciliation and administration are all necessary and none of them bill.
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About this calculator
Why is the required rate higher than I expected?
Because three deductions compound: unbillable hours, time written down before invoicing, and invoices never collected. Each looks small and together they routinely add a third to the rate needed.
What if the market will not bear that rate?
Then the overhead, the billable share or the collection process has to change. A rate the market rejects is information about the cost base, not about the client.
The formula
rate = (income + overhead) / (billable hours x realization x collection)
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