Professional services
Law Firm Legal Fee Calculator
Estimates a legal fee for a matter, where the basis has to be stated before the number.
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. A flat fee moves the risk of overrun from client to firm, which is worth something to both and should be priced accordingly. Fee agreements must be in writing in many jurisdictions and for many matter types, and the rules on what may be charged and how it is communicated are specific.
Get a Free Business AuditHow the calculation works
Expected hours at the applicable rates plus disbursements, or the flat fee for the defined scope, giving the expected total. The fee basis has to be settled first, because an hourly estimate and a flat fee are different promises: one is a forecast that may move and the other is a commitment that will not.
What moves the number
- Fee basis: hourly estimate, flat fee or contingency.
- Expected hours and the range around them.
- Disbursements, which are usually additional.
- Scope, and what falls outside it.
Where this one goes wrong
Giving an hourly estimate that a client hears as a fixed price is the most common source of fee disputes, and the fix is wording rather than arithmetic: say explicitly that it is an estimate, what would change it, and when you will tell them it has. Fees must also be reasonable under your state's conduct rules, and in many states the basis of the fee has to be communicated to the client, in writing for certain arrangements. Setting that out properly prevents most disputes before they exist.
Before you quote
- State clearly whether the figure is an estimate or a fixed fee.
- Say what would change it and when the client will be told.
- Confirm the writing requirements that apply in your state.
Where the rules come from
Questions
About this calculator
Why do fee disputes happen?
Most often because an hourly estimate was heard as a fixed price. The fix is wording rather than arithmetic: say it is an estimate, say what would change it, and say when the client will be told that it has changed.
Must the fee basis be in writing?
For some arrangements yes, and your state's conduct rules set which. Contingency fees require a signed writing with the calculation method stated. Beyond the requirement, writing it down prevents most disputes regardless of whether it is mandatory.
Are disbursements included in a quoted fee?
Usually not, and that should be stated rather than assumed. Filing fees, expert costs and search fees can be substantial, and a client who was quoted a fee and then billed for them separately experiences it as a surprise charge.
The formula
hourly = hours x rate, with an overrun allowance; capped is the lower of hourly and the cap
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How to use this calculator
- Estimated hours. Enter your own figure; the page starts at 40.
- Blended hourly rate ($). Enter your own figure; the page starts at $285.
- Typical overrun (%). Enter your own figure; the page starts at 25%.
- Flat fee quoted ($). Enter your own figure; the page starts at $13,500.
- Fee cap ($). Enter your own figure; the page starts at $15,000.
- Expected disbursements ($). Enter your own figure; the page starts at $900.
The result updates as you type, so you can try a figure, see what it does to hourly, expected, 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 |
|---|---|
| Estimated hours | 40 |
| Blended hourly rate | $285 |
| Typical overrun | 25% |
| Flat fee quoted | $13,500 |
| Fee cap | $15,000 |
| Expected disbursements | $900 |
What comes out
| Result | Value |
|---|---|
| Hourly, expected main result | $12,300 |
| Hourly, with overrun | $15,150 |
| Flat fee outcome for the firm | $14,400 |
| Capped outcome for the firm | $15,150 |
| Cheapest for the client | Flat fee |
At 40 hours the fee is $12,300, rising to $15,150 with a typical overrun. The flat fee of $14,400 transfers that risk to the firm. On these assumptions Flat fee costs the client least.
How sensitive the answer is
Holding everything else steady and changing only blended hourly rate, this is what happens to hourly, expected. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Blended hourly rate ($) | Hourly, expected |
|---|---|
| $143 | $6,620 |
| $214 | $9,460 |
| $285 example above | $12,300 |
| $428 | $18,020 |
| $570 | $23,700 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Estimated hours
- A number, between 0 and 5000, starting at 40.
- Blended hourly rate ($)
- A money amount, starting at $285.
- Typical overrun (%)
- A percentage, between 0 and 200, starting at 25%.
- Flat fee quoted ($)
- A money amount, starting at $13,500.
- Fee cap ($)
- A money amount, starting at $15,000.
- Expected disbursements ($)
- A money amount, starting at $900.
What the results tell you
| Result | What it is |
|---|---|
| Hourly, expected | The headline result. A money figure. |
| Hourly, with overrun | A money figure. |
| Flat fee outcome for the firm | A money figure. |
| Capped outcome for the firm | A money figure. |
| Cheapest for the client | A category or planning selection, rather than a measured quantity. |
Keep going
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