Legal practice Price Increase Impact
Baseline revenue: 20000
New revenue = price × (1 + increase) × volume × (1 − volume loss)
Gather time sheets, engagement scopes and invoice ageing. Include professional time, filing expenses, and admin support. The starting figures are examples. Replace them with your own records.
Formula and worked example
New revenue = price × (1 + increase) × volume × (1 − volume loss)
| Input | Example |
|---|---|
| Current price | 100 |
| Price increase | 10 % |
| Current monthly sales | 200 |
| Expected sales volume loss | 5 % |
| Calculated result | 20,900 per month |
Baseline revenue: 20000
Choose reliable inputs
Account for delivery time, review work and when you expect to be paid for each engagement. For this legal practice calculation, use time sheets, engagement scopes and invoice ageing and a consistent definition of one matter.
- Professional time: include the portion belonging to this matter or reporting period, and record where the value came from.
- Filing expenses: include the portion belonging to this matter or reporting period, and record where the value came from.
- Admin support: include the portion belonging to this matter or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Does raising prices always raise revenue?
A sufficient volume decline can offset the higher price. Compare contribution as well as revenue before deciding.
Volume loss is your assumption, not a demand forecast; costs are excluded.
What if this input changes?
If current price rises by 10%, this example changes by 2,090 per month. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.