Law Firm Pro Forma Template

With assumptions set, move to the Revenue Projections sheet and fill in your expected matter volume and average matter value by billing type and practice area. Be specific: a litigation group projecting 40 matters per year at an average $15,000 flat fee is a very different model than an hourly practice billing 1,800 hours per attorney. Once revenue is in, review the Expense Projections sheet and adjust compensation, overhead, and headcount ramp for each year. The model will flag if your expense growth outpaces revenue growth.

The numbers that matter most in a law firm pro forma are billable hours per attorney, realization rate, and collection rate — in that order. An attorney billing 1,800 hours at a $400 rate looks like $720,000 in gross production. At a 90% realization rate and 95% collection, that becomes $615,600 in collected revenue. Add a second attorney and you're modeling $1.2 million — subtract compensation, malpractice insurance, overhead, and technology costs, and you have a realistic picture of what the practice can generate. Most lenders and potential partners will build exactly this model; having it ready in your first conversation signals credibility.