Generate Law Firm Financial Projections in 60 Seconds
Lenders evaluating law firms zero in on collections realization rates, not just billable hours logged. A firm can bill 1,800 hours per attorney but if realization drops below 85%, the revenue numbers fall apart. Projections for a law firm must account for different billing structures across practice areas, the split between partner and associate billing, and the cash flow gap between work performed and payment received.
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How It Works
Three steps to your law firm financial projections
Describe your business
Tell us about your business model, revenue streams, costs, and growth expectations.
AI builds your projections
Our AI generates 5-year financial projections with income statement, cash flow, and key metrics.
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Export your projections as PDF or Word. Share with banks, investors, or your team.
Sample Output
See what law firm projections look like
Sample projections for a law firm based on real industry benchmarks.
Business Overview
Castillo & Pratt LLP is a 6-attorney litigation and business law firm in Raleigh, NC. The two name partners left a regional AmLaw 200 firm after building a $1.8M portable book of business. The firm handles commercial litigation, employment defense, and contract disputes for mid-size companies. Partners bill at $425/hr and associates at $235/hr. They are applying for a $350,000 line of credit to cover operating costs during the 90-day collection cycle on several large contingency cases expected to resolve within the next 12 months.
5-Year Financial Projections
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Gross Revenue (Billed) | $1,920,000 | $2,640,000 | $3,480,000 | $4,320,000 | $5,400,000 |
| Collected Revenue | $1,632,000 (85%) | $2,323,200 (88%) | $3,132,000 (90%) | $3,974,400 (92%) | $5,022,000 (93%) |
| Attorney Headcount | 6 | 8 | 10 | 12 | 14 |
| Net Income (Before Partner Draws) | $489,600 (30%) | $743,400 (32%) | $1,065,000 (34%) | $1,391,000 (35%) | $1,808,000 (36%) |
| Revenue per Attorney | $272,000 | $290,400 | $313,200 | $331,200 | $358,700 |
Key Financial Metrics
Realization Rate
85% → 93%
Avg Billable Hours/Attorney
1,750
Revenue per Attorney
$272K → $359K
Profit per Equity Partner
$245K → $452K
Full projections include cash flow, balance sheet & more
Everything in your law firm financial projections
5-year revenue forecast
Year-by-year revenue projections based on your pricing, growth rate, and market size.
Expense breakdown
Detailed operating expenses: payroll, rent, marketing, materials, and overhead by category.
Profit & loss statement
Complete P&L with gross margin, operating income, and net profit for each year.
Break-even analysis
Know exactly when your business becomes profitable and the revenue needed to get there.
Done in 60 seconds
Not hours with spreadsheets. Answer the questions and get investor-ready projections instantly.
Bank & investor ready
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Law Firm financial projections FAQ
How do law firms calculate revenue in financial projections?
Law firm revenue is a function of four variables: number of timekeepers, billable hours per timekeeper, hourly rate, and realization rate (percentage of billed work that actually gets collected). Multiply all four together for your gross collected revenue. For example, 8 attorneys averaging 1,750 billable hours at a blended rate of $310/hr with 88% realization equals $3,818,400 in collected revenue. Always project collections, not billings, because realization rates in most firms range from 82% to 94% depending on practice area and client mix.
What are good profit margins for a law firm?
Law firms structured as partnerships measure profitability through profit per equity partner (PEP) rather than traditional net margins. For context, small firms (2-10 attorneys) usually generate 30-40% net income before partner draws. Solo practitioners can reach 50-60% because overhead is low. The largest law firms in the AmLaw 100 average $2.2M in PEP, but a regional firm with strong collections should target $200,000 to $500,000 PEP depending on market size. Staff costs (associate salaries, paralegals, admin) are the biggest expense line at 40-55% of collected revenue.
How should a new law firm project its first-year revenue?
Start with your portable book of business, which is the revenue from clients who will follow you from your previous firm. Most departing attorneys can bring 40-70% of their current billings. Add an estimate for new client intake based on referral networks and marketing spend. Be conservative with collections timing: many clients take 45 to 90 days to pay invoices, and contingency fees may not arrive for 6 to 18 months. Model at least 3 months of operating expenses as working capital before collections stabilize. First-year firms often collect only 75-80% of what they bill.
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