Law Firm Cash Flow Calculator
Calculate cash flow for your law firm business using industry-specific benchmarks and defaults.
Monthly Cash Flow
$6,250
Net cash in or out each month
Monthly Burn Rate
$0
Cash spent beyond revenue (if negative)
Cash Runway
—
Months your reserves will last
Annual Cash Flow
$75,000
Projected 12-month net cash flow
How to Use This Cash Flow Calculator
Enter your monthly revenue — the cash actually collected each month, not just invoiced. For law firm businesses, revenue comes from Billable hours (hourly engagements), Flat fee matters, Retainer agreements. Use an average month or run the calculation for both peak and slow months.
Enter your total monthly expenses — everything that leaves your bank account. Include Attorney compensation & draws, Paralegal & staff salaries, Malpractice insurance, Legal research subscriptions (Westlaw, LexisNexis), plus loan payments and any other recurring costs.
Need more than a calculator for your law firm finances?
Our Law Firm Cash Flow Template gives you a complete, ready-to-use Excel spreadsheet with industry-specific categories, formulas, and dashboards. Skip the setup — start analyzing in minutes.
Cash Flow Calculator for Law Firm Businesses
Cash flow management is the difference between a law firm business that survives and one that thrives. Even profitable businesses fail when they run out of cash — a common scenario when revenue is seasonal, customers pay late, or a large expense hits unexpectedly. This calculator gives you a clear picture of your monthly cash position and how long your reserves will last.
Q4 typically busiest for transactional and corporate practices (year-end deals); litigation practices are more event-driven. January is slower across most practice areas. Understanding these patterns is critical for law firm businesses. Build cash reserves during peak months to cover fixed costs during slower periods. Key costs like Attorney compensation & draws, Paralegal & staff salaries, Malpractice insurance don't stop during slow months, so your cash reserves need to bridge the gap.
Law Firm Industry at a Glance
Financial templates built for law firms and legal practices — from solo practitioners to mid-size firms. Pre-loaded with billing rate structures, matter tracking, and trust account categories.
Revenue Drivers
- Billable hours (hourly engagements)
- Flat fee matters
- Retainer agreements
- Contingency fee recoveries
Key Cost Categories
- Attorney compensation & draws
- Paralegal & staff salaries
- Malpractice insurance
- Legal research subscriptions (Westlaw, LexisNexis)
- Office rent & overhead
- Bar dues, CLE & licensing
Typical Margins
Gross: 40-60% · Net: 15-35%
Seasonality
Q4 typically busiest for transactional and corporate practices (year-end deals); litigation practices are more event-driven. January is slower across most practice areas.
Key Performance Indicators
Frequently Asked Questions
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