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
Worked Example
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:
- American Bar Association — ethics and practice resources
- Law Practice Today — practice management articles
- NABE — legal administrators community