Free calculator
Billable Hour Calculator for Lawyers | Free Revenue Tool
Estimate your annual collected revenue from billable hours, hourly rate, and realization rate in seconds.
Estimated Annual Collected Revenue
--Updates as you change inputs. Estimate only, not legal advice.
This billable hour calculator helps lawyers estimate annual revenue based on their hourly rate, target billable hours per week, working weeks per year, and realization rate. Realization rate accounts for the gap between hours worked, hours billed, and hours actually collected.
The formula multiplies your weekly billable target by working weeks to get gross billable hours, then applies your hourly rate and realization rate to estimate collected revenue. Most US firms see realization rates between 80 and 90 percent.
Use this to set yearly revenue goals, evaluate rate increases, or benchmark your practice against industry data from the Clio Legal Trends Report.
Why use itBuilt for the way law firms actually work
Realization Rate Aware
Factors in the gap between hours worked and hours actually collected, not just gross billings.
Solo and Firm Friendly
Works for solo attorneys setting personal targets and partners modeling associate revenue contribution.
Benchmark Against Industry
Compare your numbers against Clio Legal Trends Report averages for utilization and realization.
Instant Results
Adjust any input and see updated annual revenue projections immediately, no spreadsheet required.
100% Free
No paywall, no trial limits, no usage caps on calculations or scenarios you can run.
No Signup Required
Use the calculator without creating an account or sharing any personal information.
ProcessHow it works
- 01 Enter your hourly rate
Use your standard client-facing rate, not a blended or discounted rate for specific matters.
- 02 Set weekly billable target
Most firms target 30 to 40 billable hours per week depending on practice area and seniority.
- 03 Pick working weeks per year
Subtract vacation, CLE, holidays, and admin weeks from 52 to get a realistic number.
- 04 Adjust realization rate
Enter the percent of billed hours you actually collect, typically 80 to 90 percent.
- 05 Review annual revenue
The calculator returns estimated collected revenue you can use for planning and benchmarking.
CoverageWhat's included
- Annual collected revenue based on your hourly rate
- Realization rate adjustment for uncollected billings
- Flexible working weeks input for vacation and CLE
- Weekly billable target modeling for any practice area
- Useful for solo, associate, and partner revenue planning
- Benchmarking inputs against industry standard rates
- Scenario testing for rate increases or capacity changes
ContextWhy this matters
Billable hours remain the dominant revenue model for US law firms. According to the Clio Legal Trends Report, lawyers in private practice bill an average of 2.9 hours of an 8 hour workday, which translates to a utilization rate of roughly 36 percent. Even fewer of those billed hours are actually collected.
Realization rate, the percentage of recorded time that is invoiced and paid, hovers around 85 percent for most firms. That gap between time worked and revenue collected is one of the largest hidden drains on law firm profitability, and it is invisible without a model like this calculator.
Running these numbers helps you set realistic revenue goals, justify a rate increase, decide whether to hire, or evaluate the ROI of practice management software that improves time capture and billing efficiency. It also gives associates a concrete view of what their book contributes to firm overhead and partner draws.
Q&AFrequently asked
- It is a tool that estimates a lawyer's annual revenue based on hourly rate, target billable hours per week, working weeks per year, and realization rate. It helps with revenue planning and benchmarking.
- Yes, the calculator is completely free with no signup, no trial, and no usage limits. You can run as many scenarios as you want.
- Solo attorneys, associates, and firm partners use it to set revenue goals, evaluate hiring decisions, model rate increases, and benchmark against industry data.
- According to industry reports, the average law firm realization rate is around 85 percent. Well-managed firms reach 90 percent or higher, while firms with poor billing hygiene can drop to 75 percent.
- Big Law associates often target 1,800 to 2,200 hours per year. Solo and small firm lawyers typically bill 1,400 to 1,700 hours due to administrative overhead.
- This calculates revenue you generate for the firm, not take-home pay. To estimate personal income, subtract overhead, taxes, and partner distributions from the revenue figure.
- No. The calculator provides estimates for planning purposes only. Consult an accountant or law firm consultant for tax planning and detailed financial modeling.
- Compare your projected revenue against firm overhead and personal income targets. If the gap is too large, consider raising rates, increasing utilization, or adopting software to improve realization.