Act on the result
Compare the result with matter records before changing staffing or fee structure.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Legal practices reviewing matter economics across a chosen fee arrangement.
Outputs
Collected fees, professional and support cost, write-offs, contribution and margin.
Start here
Choose the fee arrangement, then enter matter time, rates, support cost and collection assumptions.
Use a different tool when: Do not use this to set a viable rate and project quote; use Service Rate & Quote Planner for that decision. Use this tool to test matter economics across fee structure, professional time, support cost and write-offs.
Quote & capacity
Legal Matter Profitability: collected fees
Collected fees, professional and support cost, write-offs, contribution and margin.
Amounts use the same currency as your inputs. No currency conversion is performed.
Your industry scenario
Reconcile a legal matter fee with role hours, write-offs, loaded labour cost, disbursement recovery and a target contribution margin.
Your numbers stay in this browser
Choose how the fixed and hourly fee components apply to this matter.
Fee included before any hourly component. Keep every amount on the same ex-tax currency basis.
All partner time consumed, including unbilled time.
Partner time eligible for hourly fees.
Entered fee rate per billable partner hour. Keep every amount on the same ex-tax currency basis.
Partner cost and allocated delivery overhead per worked hour. Keep every amount on the same ex-tax currency basis.
All associate time consumed, including unbilled time.
Associate time eligible for hourly fees.
Entered fee rate per billable associate hour. Keep every amount on the same ex-tax currency basis.
Associate cost and allocated delivery overhead per worked hour. Keep every amount on the same ex-tax currency basis.
Share of standard hourly fees not expected to be realised.
External matter costs paid or accrued. Keep every amount on the same ex-tax currency basis.
Disbursement cost expected to be recovered separately. Keep every amount on the same ex-tax currency basis.
Contribution margin to protect in the required fee.
Industry decision result
Choose a fee arrangement and required fee that recover actual worked time, unrecovered disbursements and the entered margin. Review every output on the same entered business basis.
- Standard hourly fees
- 6,200.00
- Expected hourly write-off
- 620.00
- Realised matter fee
- 7,580.00
- Worked-time labour cost
- 3,100.00
- Unbilled labour cost
- 700.00
- Net disbursement cost
- 200.00
- Matter contribution
- 4,280.00
- Matter contribution margin
- 56.5%
- Realised fee per worked hour
- 252.67
- Required matter fee
- 4,400.00
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current industry scenario4,280.00Baseline
Lower Hourly fee write-off rate4,342.0062.00
Higher Hourly fee write-off rate4,218.00-62.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Standard hourly fees
Standard hourly fees
sum(billable hours * standard rate)6,200 , ex taxResult6,200.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Standard hourly feesFee Arrangement Code
- 2
- Standard hourly feesFixed Fee Ex Tax
- 2,000
- Standard hourly feesPartner Worked Hours
- 10
- Standard hourly feesPartner Billable Hours
- 8
- Standard hourly feesPartner Standard Rate Ex Tax
- 400
- Standard hourly feesPartner Loaded Cost Per Hour Ex Tax
- 150
- Standard hourly feesAssociate Worked Hours
- 20
- Standard hourly feesAssociate Billable Hours
- 15
- Standard hourly feesAssociate Standard Rate Ex Tax
- 200
- Standard hourly feesAssociate Loaded Cost Per Hour Ex Tax
- 80
- Standard hourly feesWrite Off Rate
- 0.1
- Standard hourly feesDisbursement Cost Ex Tax
- 500
- Standard hourly feesDisbursement Recovered Ex Tax
- 300
- Standard hourly feesTarget Margin
- 0.25
Expected hourly write-off
Expected hourly write-off
standard hourly fees * write-off rate620 , ex taxResult620.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Expected hourly write-offFee Arrangement Code
- 2
- Expected hourly write-offFixed Fee Ex Tax
- 2,000
- Expected hourly write-offPartner Worked Hours
- 10
- Expected hourly write-offPartner Billable Hours
- 8
- Expected hourly write-offPartner Standard Rate Ex Tax
- 400
- Expected hourly write-offPartner Loaded Cost Per Hour Ex Tax
- 150
- Expected hourly write-offAssociate Worked Hours
- 20
- Expected hourly write-offAssociate Billable Hours
- 15
- Expected hourly write-offAssociate Standard Rate Ex Tax
- 200
- Expected hourly write-offAssociate Loaded Cost Per Hour Ex Tax
- 80
- Expected hourly write-offWrite Off Rate
- 0.1
- Expected hourly write-offDisbursement Cost Ex Tax
- 500
- Expected hourly write-offDisbursement Recovered Ex Tax
- 300
- Expected hourly write-offTarget Margin
- 0.25
Realised matter fee
Realised matter fee
fixed, hourly after write-off, or both according to arrangement7,580 , ex taxResult7,580.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Realised matter feeFee Arrangement Code
- 2
- Realised matter feeFixed Fee Ex Tax
- 2,000
- Realised matter feePartner Worked Hours
- 10
- Realised matter feePartner Billable Hours
- 8
- Realised matter feePartner Standard Rate Ex Tax
- 400
- Realised matter feePartner Loaded Cost Per Hour Ex Tax
- 150
- Realised matter feeAssociate Worked Hours
- 20
- Realised matter feeAssociate Billable Hours
- 15
- Realised matter feeAssociate Standard Rate Ex Tax
- 200
- Realised matter feeAssociate Loaded Cost Per Hour Ex Tax
- 80
- Realised matter feeWrite Off Rate
- 0.1
- Realised matter feeDisbursement Cost Ex Tax
- 500
- Realised matter feeDisbursement Recovered Ex Tax
- 300
- Realised matter feeTarget Margin
- 0.25
Worked-time labour cost
Worked-time labour cost
sum(worked hours * loaded labour cost)3,100 , ex taxResult3,100.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Worked-time labour costFee Arrangement Code
- 2
- Worked-time labour costFixed Fee Ex Tax
- 2,000
- Worked-time labour costPartner Worked Hours
- 10
- Worked-time labour costPartner Billable Hours
- 8
- Worked-time labour costPartner Standard Rate Ex Tax
- 400
- Worked-time labour costPartner Loaded Cost Per Hour Ex Tax
- 150
- Worked-time labour costAssociate Worked Hours
- 20
- Worked-time labour costAssociate Billable Hours
- 15
- Worked-time labour costAssociate Standard Rate Ex Tax
- 200
- Worked-time labour costAssociate Loaded Cost Per Hour Ex Tax
- 80
- Worked-time labour costWrite Off Rate
- 0.1
- Worked-time labour costDisbursement Cost Ex Tax
- 500
- Worked-time labour costDisbursement Recovered Ex Tax
- 300
- Worked-time labour costTarget Margin
- 0.25
Unbilled labour cost
Unbilled labour cost
sum((worked hours - billable hours) * loaded labour cost)700 , ex taxResult700.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Unbilled labour costFee Arrangement Code
- 2
- Unbilled labour costFixed Fee Ex Tax
- 2,000
- Unbilled labour costPartner Worked Hours
- 10
- Unbilled labour costPartner Billable Hours
- 8
- Unbilled labour costPartner Standard Rate Ex Tax
- 400
- Unbilled labour costPartner Loaded Cost Per Hour Ex Tax
- 150
- Unbilled labour costAssociate Worked Hours
- 20
- Unbilled labour costAssociate Billable Hours
- 15
- Unbilled labour costAssociate Standard Rate Ex Tax
- 200
- Unbilled labour costAssociate Loaded Cost Per Hour Ex Tax
- 80
- Unbilled labour costWrite Off Rate
- 0.1
- Unbilled labour costDisbursement Cost Ex Tax
- 500
- Unbilled labour costDisbursement Recovered Ex Tax
- 300
- Unbilled labour costTarget Margin
- 0.25
Net disbursement cost
Net disbursement cost
disbursement cost - disbursements recovered200 , ex taxResult200.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Net disbursement costFee Arrangement Code
- 2
- Net disbursement costFixed Fee Ex Tax
- 2,000
- Net disbursement costPartner Worked Hours
- 10
- Net disbursement costPartner Billable Hours
- 8
- Net disbursement costPartner Standard Rate Ex Tax
- 400
- Net disbursement costPartner Loaded Cost Per Hour Ex Tax
- 150
- Net disbursement costAssociate Worked Hours
- 20
- Net disbursement costAssociate Billable Hours
- 15
- Net disbursement costAssociate Standard Rate Ex Tax
- 200
- Net disbursement costAssociate Loaded Cost Per Hour Ex Tax
- 80
- Net disbursement costWrite Off Rate
- 0.1
- Net disbursement costDisbursement Cost Ex Tax
- 500
- Net disbursement costDisbursement Recovered Ex Tax
- 300
- Net disbursement costTarget Margin
- 0.25
Matter contribution
Matter contribution
realised fee - labour cost - net disbursement cost4,280 , ex taxResult4,280.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Matter contributionFee Arrangement Code
- 2
- Matter contributionFixed Fee Ex Tax
- 2,000
- Matter contributionPartner Worked Hours
- 10
- Matter contributionPartner Billable Hours
- 8
- Matter contributionPartner Standard Rate Ex Tax
- 400
- Matter contributionPartner Loaded Cost Per Hour Ex Tax
- 150
- Matter contributionAssociate Worked Hours
- 20
- Matter contributionAssociate Billable Hours
- 15
- Matter contributionAssociate Standard Rate Ex Tax
- 200
- Matter contributionAssociate Loaded Cost Per Hour Ex Tax
- 80
- Matter contributionWrite Off Rate
- 0.1
- Matter contributionDisbursement Cost Ex Tax
- 500
- Matter contributionDisbursement Recovered Ex Tax
- 300
- Matter contributionTarget Margin
- 0.25
Matter contribution margin
Matter contribution margin
matter contribution / realised fee0.56 decimal rateResult56.5%
Uses the named industry records and reports this output in decimal rate. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Matter contribution marginFee Arrangement Code
- 2
- Matter contribution marginFixed Fee Ex Tax
- 2,000
- Matter contribution marginPartner Worked Hours
- 10
- Matter contribution marginPartner Billable Hours
- 8
- Matter contribution marginPartner Standard Rate Ex Tax
- 400
- Matter contribution marginPartner Loaded Cost Per Hour Ex Tax
- 150
- Matter contribution marginAssociate Worked Hours
- 20
- Matter contribution marginAssociate Billable Hours
- 15
- Matter contribution marginAssociate Standard Rate Ex Tax
- 200
- Matter contribution marginAssociate Loaded Cost Per Hour Ex Tax
- 80
- Matter contribution marginWrite Off Rate
- 0.1
- Matter contribution marginDisbursement Cost Ex Tax
- 500
- Matter contribution marginDisbursement Recovered Ex Tax
- 300
- Matter contribution marginTarget Margin
- 0.25
Realised fee per worked hour
Realised fee per worked hour
realised fee / total worked hours252.67 , ex taxResult252.67
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Realised fee per worked hourFee Arrangement Code
- 2
- Realised fee per worked hourFixed Fee Ex Tax
- 2,000
- Realised fee per worked hourPartner Worked Hours
- 10
- Realised fee per worked hourPartner Billable Hours
- 8
- Realised fee per worked hourPartner Standard Rate Ex Tax
- 400
- Realised fee per worked hourPartner Loaded Cost Per Hour Ex Tax
- 150
- Realised fee per worked hourAssociate Worked Hours
- 20
- Realised fee per worked hourAssociate Billable Hours
- 15
- Realised fee per worked hourAssociate Standard Rate Ex Tax
- 200
- Realised fee per worked hourAssociate Loaded Cost Per Hour Ex Tax
- 80
- Realised fee per worked hourWrite Off Rate
- 0.1
- Realised fee per worked hourDisbursement Cost Ex Tax
- 500
- Realised fee per worked hourDisbursement Recovered Ex Tax
- 300
- Realised fee per worked hourTarget Margin
- 0.25
Required matter fee
Required matter fee
(labour cost + net disbursement cost) / (1 - target margin)4,400 , ex taxResult4,400.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Legal Matter Profitability Planner formulas →Inputs used by these formula steps
- Required matter feeFee Arrangement Code
- 2
- Required matter feeFixed Fee Ex Tax
- 2,000
- Required matter feePartner Worked Hours
- 10
- Required matter feePartner Billable Hours
- 8
- Required matter feePartner Standard Rate Ex Tax
- 400
- Required matter feePartner Loaded Cost Per Hour Ex Tax
- 150
- Required matter feeAssociate Worked Hours
- 20
- Required matter feeAssociate Billable Hours
- 15
- Required matter feeAssociate Standard Rate Ex Tax
- 200
- Required matter feeAssociate Loaded Cost Per Hour Ex Tax
- 80
- Required matter feeWrite Off Rate
- 0.1
- Required matter feeDisbursement Cost Ex Tax
- 500
- Required matter feeDisbursement Recovered Ex Tax
- 300
- Required matter feeTarget Margin
- 0.25
Inputs used
- Fee arrangement code (fee-arrangement selection)
- 2
- Fixed or hybrid fee component (/matter, ex tax)
- 2,000
- Partner hours worked (hours/matter)
- 10
- Partner billable hours (billable hours/matter)
- 8
- Partner standard rate (/billable partner hour, ex tax)
- 400
- Partner loaded cost per hour (/partner worked hour, ex tax)
- 150
- Associate hours worked (hours/matter)
- 20
- Associate billable hours (billable hours/matter)
- 15
- Associate standard rate (/billable associate hour, ex tax)
- 200
- Associate loaded cost per hour (/associate worked hour, ex tax)
- 80
- Hourly fee write-off rate (decimal fraction of standard hourly fees written off)
- 0.1
- Matter disbursement cost (/matter, ex tax)
- 500
- Disbursements recovered (/matter, ex tax)
- 300
- Target matter margin (decimal fraction of matter revenue)
- 0.25
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| associateBillableHours | Associate time eligible for hourly fees. | billable hours/matter | 0 to 100000 | Required | 15 |
| associateLoadedCostPerHourExTax | Associate cost and allocated delivery overhead per worked hour. Keep every amount on the same ex-tax currency basis. | currency units/associate worked hour, ex tax | 0 to 10000000 | Required | 80 |
| associateStandardRateExTax | Entered fee rate per billable associate hour. Keep every amount on the same ex-tax currency basis. | currency units/billable associate hour, ex tax | 0 to 10000000 | Required | 200 |
| associateWorkedHours | All associate time consumed, including unbilled time. | hours/matter | 0 to 100000 | Required | 20 |
| disbursementCostExTax | External matter costs paid or accrued. Keep every amount on the same ex-tax currency basis. | currency units/matter, ex tax | 0 to 10000000 | Required | 500 |
| disbursementRecoveredExTax | Disbursement cost expected to be recovered separately. Keep every amount on the same ex-tax currency basis. | currency units/matter, ex tax | 0 to 10000000 | Required | 300 |
| feeArrangementCode | Choose how the fixed and hourly fee components apply to this matter. | — | 0 (Fixed fee), 1 (Hourly fees after write-off), 2 (Hybrid fixed plus hourly) | Required | Hybrid fixed plus hourly |
| fixedFeeExTax | Fee included before any hourly component. Keep every amount on the same ex-tax currency basis. | currency units/matter, ex tax | 0 to 10000000 | Required | 2000 |
| partnerBillableHours | Partner time eligible for hourly fees. | billable hours/matter | 0 to 100000 | Required | 8 |
| partnerLoadedCostPerHourExTax | Partner cost and allocated delivery overhead per worked hour. Keep every amount on the same ex-tax currency basis. | currency units/partner worked hour, ex tax | 0 to 10000000 | Required | 150 |
| partnerStandardRateExTax | Entered fee rate per billable partner hour. Keep every amount on the same ex-tax currency basis. | currency units/billable partner hour, ex tax | 0 to 10000000 | Required | 400 |
| partnerWorkedHours | All partner time consumed, including unbilled time. | hours/matter | 0 to 100000 | Required | 10 |
| targetMargin | Contribution margin to protect in the required fee. | decimal fraction of matter revenue | 0 to 0.99 | Required | 0.25 |
| writeOffRate | Share of standard hourly fees not expected to be realised. | decimal fraction of standard hourly fees written off | 0 to 1 | Required | 0.1 |
Legal Matter Profitability: collected fees
Matter contribution depends on the selected fee arrangement, time burden, write-offs and collections.
Formula summary
- Primary formula
- realised fee - labour cost - net disbursement cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest higher professional time, write-offs and collection delay.
When this estimate can be misleading
- Industry costs, tax, contract terms, capacity and targets are entered by the user; no market benchmark is embedded.
- Use records from one consistent period and one ex-tax currency basis where money applies.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- Matter contribution depends on the selected fee arrangement, time burden, write-offs and collections.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Service Pricing and Quoting: From Capacity to Scope
Turn cost and sellable capacity into a service rate, then test scope, duration, delivery risk and commercial model.
Read guide
Frequently asked questions
How do I test matter economics across fee structure, professional time, support cost and write-offs?
Compare the result with matter records before changing staffing or fee structure.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.