Section 01

Profitability Calculator

Profitability Calculator

— interactive

Adjust the inputs to see how each variable affects partner income — and what a 5% utilization drop really costs.

Staff per Partner
220
Staff Bill Rate (standard $/hr)$
$100$500
Staff Cost (fully burdened)$K
$90K$200K
Overhead Rate%
15%30%
Utilization Rate%
50%95%
Realization Rate%
60%100%
—
Gross Billings
—
Revenue Collected
—
Est. Partner Income
collected revenue − loaded labor − overhead. Simplified to 1 equity partner per leverage team.
—
Profit Margin
% of collected revenue that becomes partner income
—
Break-Even Util.
below this util, the team goes underwater
⚠ If Utilization Drops 5%...
Partner income impact—
This is why utilization is the most protected number in the firm.