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 (currency, tax treatment, and time period) before you calculate.

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. 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
ScenarioWhen to use
Percent of a numberFinding a part of a whole (tax, tip, score)
Percent changeComparing old vs new values

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.

Common mistakes

  • Swapping part and whole: The denominator must be the full total, not a subset.
  • Rounding too early: Carry extra decimal places through multi-step work before rounding the final percent.
  • Mixing percent and decimal forms: Enter rates in the format the calculator labels expect.

The worked example for write off rate was verified with the calculator form on this page—enter the same values to confirm the result.

When to use this calculator

  • Use this page when your wording matches write off rate and the form labels on screen.
  • Use percent of a number for “what is X% of Y?” problems.
  • Use number is what percent when you know part and whole and need the percent.

Still unsure about write off rate? Start with the quick answer above, then open the linked calculator that matches your wording.

Frequently Asked Questions

How do I use this write off rate calculator?

For write off rate, enter the values labeled on the form, then press Calculate. Compare the result to the worked example on this page.

What formula does this page use?

See the quick answer and formula box above for write off rate—the same percentage calculator expression is applied to your inputs.

What if my result looks wrong?

When checking write off rate, re-check part vs whole (or rate vs base), rounding, and whether percents were entered as 25 rather than 0.25 when the form expects percents.

Authoritative References

For practice-management concepts and professional rules, consult: