Professional services
Law Firm Contingency Fee Calculator
Works a contingency fee at firm level, where the costs treatment drives the client's net.
Result
Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and fee splitting are governed by the rules of professional conduct in your jurisdiction, and several of them are strict. Check the applicable rules before any of this affects a client agreement. This shows how a distribution divides once the figures are known. It does not value a case and cannot: that depends on liability, damages, insurance limits, jurisdiction and facts. Contingency percentages are capped by statute or court rule in many jurisdictions and for many matter types, sliding scales are common, and the fee agreement must state clearly whether costs come off before or after the fee.
Get a Free Business AuditHow the calculation works
The percentage applied to the recovery, with costs and disbursements handled as the agreement specifies, giving the fee and the client's net. Where the percentage steps with the stage reached, the applicable step depends on when the matter resolved, which has to be defined precisely enough that nobody argues about it afterwards.
What moves the number
- Percentage and any steps by stage.
- Whether costs are deducted before or after the percentage.
- Costs advanced by the firm during the matter.
- Liens against the recovery.
Where this one goes wrong
Stepped percentages need the trigger defined precisely, because the difference between settling before and after a defined stage is substantial and a vague trigger becomes a dispute with a client who has just received money. Costs treatment needs the same precision, since deducting before or after the percentage produces materially different results on a case with large disbursements. The agreement must be in writing and signed, with the calculation method stated, under the conduct rules states have adopted.
Before you quote
- Define any percentage step trigger precisely in the agreement.
- State whether costs come off before or after the percentage.
- Put the agreement in writing, signed, with the method stated.
Where the rules come from
Questions
About this calculator
What makes stepped contingency percentages risky?
A vague trigger. The difference between settling before and after a defined stage is substantial, and a trigger that can be read two ways becomes a dispute with a client who has just received funds. Defining it precisely in the agreement prevents that.
Does costs treatment make much difference?
On a case with large disbursements, a considerable one, since deducting costs before or after the percentage produces materially different results. Which applies must be stated in the agreement, and the client should see the expected net before signing.
Must the agreement be in writing?
Yes under the conduct rules states have adopted: signed by the client and stating the method of calculation, including which expenses are deducted and whether they come off before or after the percentage. Your state's version is the one that governs.
The formula
fee = settlement x rate, or (settlement - costs) x rate depending on the agreement; client net is what remains after fee, costs and liens
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How to use this calculator
- Settlement or award ($). Enter your own figure; the page starts at $150,000.
- Contingency percentage (%). Enter your own figure; the page starts at 33.33%.
- Case costs advanced ($). Filing, experts, depositions, records.
- Fee calculated. Enter your own figure; the page starts at On the gross, before costs.
- Liens and medical bills to satisfy ($). Enter your own figure; the page starts at $22,000.
The result updates as you type, so you can try a figure, see what it does to client receives, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Settlement or award | $150,000 |
| Contingency percentage | 33.33% |
| Case costs advanced | $12,500 |
| Fee calculated | On the gross, before costs |
| Liens and medical bills to satisfy | $22,000 |
What comes out
| Result | Value |
|---|---|
| Client receives main result | $65,505 |
| Attorney fee | $49,995 |
| Costs reimbursed | $12,500 |
| Liens satisfied | $22,000 |
| Client share of the settlement | 43.67% |
| Difference the order makes | $4,166 |
The client receives $65,505, which is 43.67% of the settlement, after a $49,995 fee, $12,500 of costs and $22,000 of liens. Whether the fee is taken before or after costs changes it by $4,166.
How sensitive the answer is
Holding everything else steady and changing only settlement or award, this is what happens to client receives. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Settlement or award ($) | Client receives |
|---|---|
| $75,000 | $15,503 |
| $112,500 | $40,504 |
| $150,000 example above | $65,505 |
| $225,000 | $115,508 |
| $300,000 | $165,510 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Settlement or award ($)
- A money amount, starting at $150,000.
- Contingency percentage (%)
- A percentage, between 0 and 50, starting at 33.33%.
- Case costs advanced ($)
- Filing, experts, depositions, records.
- Fee calculated
- Choose from On the gross, before costs, On the net, after costs.
- Liens and medical bills to satisfy ($)
- A money amount, starting at $22,000.
What the results tell you
| Result | What it is |
|---|---|
| Client receives | The headline result. A money figure. |
| Attorney fee | A money figure. |
| Costs reimbursed | A money figure. |
| Liens satisfied | A money figure. |
| Client share of the settlement | A percentage. |
| Difference the order makes | A money figure. |
Keep going
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