Withum’s Law Firm Managing Partner Interview Series
Withum’s Law Firm Managing Partner Interview Series highlights managing partners of law firms across the country.
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2026 Benchmark Guidance for Law Firm Leadership
For law firm leaders, staying informed about industry trends and benchmarks remains critical as 2026 progresses. This report identifies the top five benchmarking observations that will provide valuable insights and guidance for navigating the evolving legal landscape, using the results of our 2025 Law Firm Financial Performance Benchmarks survey conducted by Savvy Surveys for Lawyers.
These observations cover key areas such as lawyer productivity, utilization rates, hourly rates, client demand and profitability. By understanding and leveraging these benchmarks, law firm leaders can make informed decisions to drive growth and success in the coming months.
Demand: Total Hours of Fees Billed Per Lawyer
Our survey asked, “What was your firm’s demand (total hours of fees billed) in its 2024 fiscal year?”
Figure 1: Total Hours of Fees Billed Per Lawyer at Smaller Firms
| Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|
| 240 | 1,178 | 1,743 | 1,419 | 1,902 | 2,031 |
Figure 2: Total Hours of Fees Billed Per Lawyer at Larger Firms
| Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|
| 11 | 1,119 | 1,369 | 1,266 | 1,599 | 1,787 |
Historically, lawyer productivity has been measured as a function of hours worked per lawyer per defined unit of time. While the industry recorded historical highs of 1,656 hours billed per attorney in 2007, trends have seen hours per attorney decline to approximately 1,380 hours towards the end of FY24. Survey respondents indicated median annual hours per attorney as approximately 1,597, with small firms reporting an average of 1,266 and larger firms at 1,419.
Average Attorney Utilization
The survey asked, “For the first six months of 2025, what has been your firm’s average attorney utilization?”
Figure 4: Average Attorney Utilization at Larger Firms
| Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|
| 0.74 | 0.87 | 0.90 | 0.90 | 0.95 | 1 |
Utilization rate is reflected as a percentage of a professional’s daily workload that is deemed billable to a client. In the past ten years, the industry has seen an increase in daily billing by approximately 36%. Survey respondents indicated that the median ratio of billable time per attorney at larger firms currently sits at 90%. The average and median for smaller firms remain around the same, at 90% and 92%, respectively.
Effective Billing Rates
Our survey asked, “What is your firm’s approximate effective billing rate per lawyer hour?”
Figure 5: Effective Billing Rates of Lawyers, at Smaller and Larger Firms
| Size | Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|---|
| Smaller | $164.00 | $198.50 | $254.00 | $261.75 | $317.25 | $375.00 |
| Larger | $212.00 | $285.00 | $377.00 | $438.60 | $545.00 | $762.00 |
Overall, hourly rates for lawyers have largely kept pace with inflation. The average hourly rate for overall survey respondents was $355, which is on pace with national trends ($349). However, normalized by size, the data shows disparate averages between small and large, with an average of $262 for small firms and upwards of $439 for large firms.
Revenue Per Lawyer
Generally, the more revenue each lawyer in a firm produces, the more profitable the firm. This relationship makes revenue per lawyer a key benchmark for firm profitability.
Figure 7: Revenue Per Lawyer at Smaller and Larger Firms
| Size | Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|---|
| Smaller | $216,742 | $322,001 | $387,045 | $420,204 | $564,351 | $610,880 |
| Larger | $189,394 | $403,048 | $446,530 | $512,970 | $634,039 | $869,570 |
Q3 2025 found that client demand had increased nearly 4% over the same period in 2024. Client demand remains near a 20-year high, and as such, revenue per lawyer is expected to surpass firm expectations, nationwide. Our respondents stated revenue per lawyer had an average value of approximately $416,000, which is 13% higher than national averages for firms with 5-19 attorneys. Small firms’ average remained right around overall results, while normalized large firm data shows upwards of $513,000.
Profit Per Partner
Our survey asked, “What was your firm’s average total partnership income in its 2024 fiscal year?” Sometimes called “profit per partner” or “book income,” this metric represents average partnership distribution plus draws or salaries.
Figure 9: Profit Per Partner at Smaller and Larger Firms
| Size | Lowest | Q1 | Median | Average | Q3 | Highest |
|---|---|---|---|---|---|---|
| Smaller | $282,463 | $673,250 | $700,000 | $ 891,743 | $875,000 | $1,928,000 |
| Larger | $423,400 | $650,000 | $1,200,000 | $12,852,285 | $11,490,000 | $65,319,000 |
Nationwide, firms are on track to deliver nearly double-digit profit growth for 2025, with the average firm seeing a 13% rise in profitability compared to the already unmatched heights of 2024. Overall, survey respondents indicated that the median profit per partner was approximately $673,000 in the past 12 months. The combination of record demand and historic rate increases has kept firms’ immense expense growth (driven by technology upgrades) from diminishing historic profits that rival the best years in the legal industry’s history.
Conclusion
The insights and benchmarks presented here provide a useful snapshot of the current state of the legal industry as we move forward in 2026. By focusing on these key areas, law firm leaders can make informed decisions to drive their firms towards sustained growth and success. The data and trends highlighted here underscore the importance of staying adaptable and proactive in an ever-evolving legal landscape. As we continue to navigate the challenges and opportunities ahead, utilizing these benchmarks will prove valuable for guiding strategic planning and achieving long-term objectives.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.
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