Break-Even Calculator for Law Firms
Find exactly how many matters and how much revenue your firm needs each month to cover its costs and start turning a profit.
This calculator shows how many matters and how much revenue your firm needs each month to cover all of its costs — the point where you stop losing money and start making it. It's built for law firm owners and managing partners: enter your fixed overhead, your average revenue per matter, and what it costs to deliver one matter, and see your break-even point update instantly. A "matter" is one average case, file, or engagement your firm handles.
Break-Even Calculator
Updates live as you change any number.
Rent, attorney & staff salaries, malpractice insurance, software — costs that don't change with caseload.
The average fee one matter, case, or engagement brings in.
The direct cost to handle one matter — court & filing fees, contract attorney or paralegal time, experts.
Want to model a profit goal? Enter it and we'll show what it takes to get there.
Your Break-Even Point
or about $16,667 in monthly revenue.
Contribution Margin / Matter
$60.00
Contribution Margin %
60%
How the Math Works
Step 1: Contribution Margin = Revenue per Matter − Direct Cost per Matter
Step 2: Break-Even Matters = Fixed Costs ÷ Contribution Margin
Step 3: Break-Even Revenue = Fixed Costs ÷ (Contribution Margin ÷ Revenue per Matter)
The contribution margin is what's left from each matter after its direct cost — the money that goes toward covering your fixed overhead. Once your fixed costs are fully covered, that same margin on every additional matter becomes profit. If you set a target profit, we simply add it to your fixed costs before dividing.
This is an estimate for planning purposes only and is not financial, tax, or legal advice. Your actual results depend on factors this tool doesn't model, such as taxes, seasonality, and changing costs.
Not Sure Your Firm's Numbers Support Your Goals?
Let's look at your firm's numbers together. We help law firm owners price for profit and build financials that hold up.
Frequently Asked Questions
What is a break-even point for a law firm?
Your break-even point is the level of business where your firm's total revenue exactly equals its total costs — you're not losing money, but you're not yet profitable either. Every matter beyond that point starts contributing to profit. Knowing this number tells you the minimum caseload or billings your firm needs each month just to keep its doors open.
What counts as a fixed cost vs. a direct cost?
Fixed costs stay roughly the same no matter how many matters you take on — office rent, attorney and staff salaries, malpractice insurance, practice-management software, and bar dues. Direct (variable) costs rise and fall with each matter — court and filing fees, contract attorney or paralegal time, expert witnesses, and case-specific expenses. Separating the two is what makes a break-even calculation possible.
What counts as a "matter" in this calculator?
A matter is one average case, file, or engagement your firm handles — a single litigation file, a closing, an estate plan, or a retainer client. Use your average revenue per matter and the direct cost to deliver it. If your firm bills mostly by the hour, treat one average billable engagement as a matter and use its typical total fee.
Does this include taxes or partner draws?
Only if you include them in your inputs. If you want partner compensation covered, add it to fixed costs. Taxes are not modeled here — this is a planning estimate, not tax or legal advice. For a full picture of firm pricing, profitability, and taxes, talk to someone at Mana.