Write-Off Rate

A realization cousin: write-offs reduce billable value before invoices go out. Track separately from collection shortfalls.

Write-off rate % = write-offs ÷ standard worked value × 100.

Tip: Keep “Write-Off Amount” and “Standard Value” on the same basis (period, units, and population) before calculating Write-Off Rate.

Cluster: Legal hub · Resource utilization · Percentage guide

Write-off rate shows what share of standard/worked value was written off before billing or collection.

Enter write-off amount and standard (pre-write-off) value for the same period.

$
Value written off
$
Pre-write-off standard/worked value

Write-Off Rate

Understanding Write-Off Rate

How we calculate. Write-off rate % = write-offs ÷ standard worked value × 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 Write-Off Rate case uses write-off amount 12000 and standard value 150000. Enter the same figures below to reproduce the worked path.

What is Write-Off Rate?

A realization cousin: write-offs reduce billable value before invoices go out. Track separately from collection shortfalls.

  • Standard value = hours × standard rates
  • Write-offs = value never billed
  • Same matter period

The Formula

Write-Off Rate
Write-off % = (Write-offs ÷ Standard value) × 100

Worked Example

Scenario: Write-offs $12,000 on standard value $150,000.
Step 1: 12000 ÷ 150000 = 0.08
Step 2: × 100 = 8%
Answer: Write-off rate is 8%.

Common Use Cases

  • Partner reviews: discount discipline
  • Matter audits: leak points
  • Pricing: rate vs write-off tradeoffs

Pro Tips

  • Separate courtesy discounts from true write-offs
  • Don’t mix collection shortfalls
  • Segment by practice group

Limitations: Write-Off 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

Write-off vs realization?

Write-off measures value removed; realization measures what remains billed/collected vs standard.

What if standard value is 0?

Write-off rate is undefined—enter positive standard value.

Authoritative References

For practice-management concepts and professional rules, consult: