Understanding Cost Recovery Rate
How we calculate. Cost recovery % = recovered ÷ advanced × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Cost Recovery Rate case uses costs recovered 18000 and costs advanced 20000. Enter the same figures below to reproduce the worked path.
What is Cost Recovery Rate?
Tracks disbursement recovery—filing fees, experts, travel—separately from fee realization.
- Advanced costs = firm outlays
- Recovered = client-paid or reimbursed
- Exclude fees unless intentional
The Formula
Worked Example
Common Use Cases
- Finance ops: AR on costs
- Matter close-outs: unrecovered costs
- Engagement letters: recovery terms
Pro Tips
- Age unrecovered costs
- Bill costs promptly
- Track write-offs of costs separately
Limitations: Cost Recovery Rate results are educational practice-management aids only—not legal advice, fee advice, or a substitute for counsel, ethics rules, or engagement letters. Confirm definitions with your firm policies and applicable professional rules.
FAQ
Can recovery exceed 100%?
Only if recovered includes markups or prior-period catch-up—usually cap or investigate.
What if advanced is 0?
Recovery rate is undefined—enter positive advanced costs.
Authoritative References
For practice-management concepts and professional rules, consult:
- American Bar Association — ethics and practice resources
- Law Practice Today — practice management articles
- NABE — legal administrators community