Utilization rate
% of an eight-hour day that gets put towards billable work.
Law Firm Key Performance Indicators (KPIs)
Clio’s key performance indicators (KPIs) for law firms provide important insight into operational efficiency and revenue.
Realization rate
% of billable work that gets invoiced to clients.
Collection rate
% of invoiced work that gets paid.
KPIs in 2026
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Law firm utilization rate
42% in an average eight-hour workday, lawyers record about 3.4 billable hours.
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Law firm realization rate
90% in an average eight-hour workday, lawyers invoice about 3.0 hours’ woth of billable work to clients.
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Law firm collection rate
92% In an average eight-hour workday, lawyers collect about 2.8 hours’ worth of invoiced work from clients.
Lockup
“Lockup” answers a critical question: How long does it take for work to become cash? It measures days of work tied up in unbilled time or unpaid invoices. A high lockup starves your firm of cash. Lowering it fuels growth.
Measures of lockup
Lockup is calculated by converting the dollar value of your unearned revenue into the equivalent number of days of work. It has three parts:
Realization lockup
= (value of unbilled work ÷ annual revenue) × 365 days
The value of all work you’ve done but haven’t billed for.
Collection lockup
= (value of unpaid invoices ÷ annual revenue) × 365 days
The value of all invoices you’ve sent but haven’t been paid for.
Total lockup
= realization lockup + collection lockup
The combination of work in both realization and collection lockup.
Lockup rates in 2026
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Realization lockup
44 days The median realization lockup for law firms in 2026.
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Collection lockup
27 days The median collection lockup for law firms in 2026.
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Total lockup
88 days The median total lockup for law firms in 2026.