Markup and margin measure the same profit from different angles. Markup is profit divided by cost. Margin is profit divided by price. A 50% markup equals a 33% margin. Confusing the two leads to underpricing: if you need a 40% margin and apply a 40% markup instead, you're actually running at 28.6% margin and leaving money on the table.
Markup & Margin Calculator for Law Firm
Pre-filled with real law firm industry benchmarks
Law firm pricing revolves around three models: hourly billing, flat fees, and contingency fees. Hourly rates range from $150 to $350 for solo and small firm attorneys, $250 to $500 for mid-size firms, and higher for big-law. Flat-fee pricing is growing in transactional work like estate planning ($1,500 to $5,000 per plan), business formation ($750 to $2,500), and real estate closings ($500 to $1,500). Contingency fees (25 to 40% of recovery) dominate personal injury and some employment law. The markup concept for law firms is the multiplier between your cost to deliver a service and the fee you charge. If a standard will takes 3 hours of attorney time at a loaded cost of $80/hour ($240 total cost) and you charge $1,500 flat fee, your effective markup is 525% and your margin is 84%. This calculator helps you analyze different pricing models against your actual cost of service delivery.
Markup & Margin Calculator
Pre-filled with law firm industry defaults. Edit any field to use your real numbers.
Markup
1900.0%
Margin
95.0%
Profit
$760
Law Firm industry average: 95.0% margin (5.0% COGS).