Allocate a Combined Fee Across Matters

Excel Formulas › Legal & Billing

All versionsROUND

When one payment or flat fee covers several matters, allocate it by each matter’s share of hours (or value) — and make the rounded pieces tie back exactly to the total with a plug on the last row.


Quick formula: each matter’s share of a combined fee:
=ROUND(total_fee * matter_hours / SUM(hours), 2)
Pro-rate the fee by the matter's hours, rounded to cents; the last matter absorbs any rounding remainder.

Functions used (tap for the full reference guide):

The example

$5,000 split across three matters by hours.

AB
1ItemValue
2Allocated parts
3Sum ties to→ $5,000.00

The formula

The formula:

=ROUND(total_fee * matter_hours / SUM(all_hours), 2) // pro-rate by share of hours

How it works

How it works:

  1. Each matter’s share = total_fee × matter_hours ÷ SUM(hours), rounded to cents.
  2. Rounded pieces may not sum to the total by a penny or two.
  3. The last row takes a plug: total_fee − SUM(other_allocations) — so it ties exactly.
  4. Allocate by value or headcount instead of hours by swapping the weight.

The plug guarantees the tie-out. Independently rounding each share to cents can leave the parts off the total by a penny — unacceptable in billing. Compute every matter except the last with ROUND(...), then set the last to total − SUM(the rest). The pieces are individually fair and collectively exact, which is what a client and an auditor both expect.

Try it: interactive demo

Live demo

Total fee and hours per matter (comma-separated).

Allocation:

Variations

Last-row plug

Absorb rounding:

=total_fee - SUM(other_allocations)

Allocate by value

Weight by fees not hours:

=ROUND(total_fee * matter_value / SUM(values), 2)

Check the tie-out

Should be zero:

=total_fee - SUM(allocations)

Pitfalls & errors

Plug the last row. Rounded shares need one residual line so they sum exactly.

Round to cents. Use ROUND(…, 2) on currency allocations.

Zero total weight. No hours/value gives #DIV/0! — guard it.

Practice workbook

📊
Download the free Allocate a Combined Fee Across Matters practice workbook
A fee-allocation sheet with the plug, by-value, and tie-out variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I allocate a combined fee across matters in Excel?
Pro-rate by share of hours: =ROUND(total_fee * matter_hours / SUM(hours), 2), then plug the last row so the pieces tie to the total.
Why do the rounded allocations not add up?
Independent rounding to cents can drift a penny or two. Set the last allocation to total - SUM(the rest) so it ties exactly.
Can I allocate by value instead of hours?
Yes — swap the weight: =ROUND(total_fee * matter_value / SUM(values), 2).

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Related formulas: Contingency fee split · Cost allocation · Round currency

Function references: ROUNDSUMPRODUCT