This interactive calculator estimates the real costs of:
- Continuing to self-fund your firm’s case funds with your own post-tax cash
- Funding your firm’s case funds with a line of credit from a lender without passing the borrowing costs through to your cases
- Funding your firm’s case funds with Advocate™ and passing the borrowing costs through to your cases
These are only estimates, and actual experiences may differ. You can change any or all of the variables. “Recalculate” to see the impact.
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Funds presently invested in case funds:
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$ |
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Pre-tax rate at which your cash could be invested:
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% |
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Annual interest rate from other lender, including fees:
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Recalculate
Future Value of Your Money
| Borrow and Invest | |||
| End of Year | Self-Funding | Other Lender | Advocate Capital, Inc. |
| 1 | $970,000 | $993,644 | $1,014,860 |
| 2 | $940,900 | $987,328 | $1,029,941 |
| 3 | $912,673 | $981,052 | $1,045,246 |
| 4 | $885,293 | $974,816 | $1,060,778 |
| 5 | $858,734 | $968,620 | $1,076,542 |
| 6 | $832,972 | $962,463 | $1,092,539 |
| 7 | $807,983 | $956,346 | $1,108,774 |
| 8 | $783,743 | $950,267 | $1,125,251 |
| 9 | $760,231 | $944,227 | $1,141,972 |
| 10 | $737,424 | $938,225 | $1,158,942 |
| 11 | $715,301 | $932,262 | $1,176,164 |
| 12 | $693,842 | $926,336 | $1,193,642 |
| 13 | $673,027 | $920,448 | $1,211,379 |
| 14 | $652,836 | $914,597 | $1,229,381 |
| 15 | $633,251 | $908,784 | $1,247,649 |
| 16 | $614,254 | $903,007 | $1,266,189 |
| 17 | $595,826 | $897,268 | $1,285,005 |
| 18 | $577,951 | $891,564 | $1,304,100 |
| 19 | $560,613 | $885,897 | $1,323,479 |
| 20 | $543,794 | $880,266 | $1,343,146 |
| 21 | $527,481 | $874,671 | $1,363,106 |
| 22 | $511,656 | $869,112 | $1,383,362 |
| 23 | $496,306 | $863,587 | $1,403,918 |
| 24 | $481,417 | $858,098 | $1,424,781 |
| 25 | $466,975 | $852,644 | $1,445,953 |
Assumptions
- The law firm is operating at a profit
- All lines of credit are fully utilized
- Investment earnings are reinvested
- Net interest costs are paid out of the starting principal
- Annual inflation is 3%
- Income tax rate is 35%
- These calculators are based on average case balance and duration
