About the Contingency Fee Calculator
This contingency fee calculator shows how a settlement or verdict is actually split. Enter the gross settlement, your attorney’s contingency percentage, case costs advanced by the firm, and any medical or insurance liens, and it returns the lawyer’s fee, total deductions, and the net amount that reaches you.
It is useful for personal injury, auto accident, workers’ comp third-party and employment claimants reviewing a settlement offer or a fee agreement. The fee basis option matters more than most people realize: a fee taken from the gross settlement costs you more than the same percentage taken after costs are reimbursed. Enter the hours your lawyer spent to see the effective hourly rate.
Typical agreements charge 33⅓% if a case settles before a lawsuit is filed and 40% or more if it goes to litigation or trial, but percentages, caps and cost rules vary by state and by agreement. Always check your written fee agreement.
With the default inputs, the your net recovery is $51,670.00. Change any value above to recalculate instantly.
How to use the contingency fee calculator
- 1Enter the gross settlement offer or award.
- 2Enter the contingency percentage from your fee agreement.
- 3Choose whether the fee is calculated before or after case costs.
- 4Add case costs and any medical liens or bills to be paid from the settlement.
- 5Review your net recovery and compare it with other offers.
Formula and method
On a gross-basis agreement, the percentage p is applied to the full settlement S, and case costs C are then reimbursed to the firm from your share. On a net-basis agreement, costs are reimbursed first and the percentage applies only to what remains, which lowers the fee by p × C.
Medical bills and liens L — for example from a health insurer, Medicare or Medicaid — are paid out of the settlement before you receive the balance. The effective hourly rate divides the fee by the hours your lawyer reports, which helps judge whether the fee is reasonable for the work done.
- S
- Gross settlement or award
- p
- Contingency fee percentage
- C
- Case costs advanced by the firm
- L
- Liens and medical bills paid from the settlement
Worked examples
$100,000 settlement at one-third
A 33.33% fee on $100,000 is $33,330. After $5,000 of case costs and $10,000 of medical liens, you receive $51,670 — about 52% of the headline settlement.
$250,000 after litigation, 40% on net
Costs of $15,000 come off first, and 40% of the remaining $235,000 is a $94,000 fee. After $20,000 of liens you net $121,000 (48.4%). Over 300 hours, the fee works out to about $313 an hour.
Small auto accident claim
One-third of $30,000 is $9,999. With $1,500 of costs and no liens you keep $18,501, about 62%. Sixty hours of work gives an effective rate of roughly $167 an hour.
Frequently asked questions
What percentage do lawyers take from a settlement?+
Most personal injury lawyers charge 33⅓% of the recovery if the case settles before a lawsuit is filed and 35%–40% if it goes into litigation or to trial. Some states cap contingency fees in certain cases, such as medical malpractice or workers’ compensation.
Are case costs taken out before or after the lawyer’s fee?+
It depends on your fee agreement. If the fee is calculated on the gross settlement, costs come out of your share afterwards; if it is calculated on the net, costs are deducted first, which lowers the fee. The agreement must say which method applies.
Do I pay my lawyer if I lose?+
Under a true contingency agreement you owe no attorney fee if there is no recovery. However, some agreements still make you responsible for case costs such as filing fees and expert costs, so read the cost clause carefully.
Can I negotiate a contingency fee?+
Yes. Fees are negotiable, especially for strong cases or large expected recoveries. Common options include a lower percentage, a sliding scale that drops as the recovery grows, or a fee calculated on the net settlement.
Is a personal injury settlement taxable?+
Compensation for physical injuries or physical sickness is generally excluded from federal income tax, but punitive damages and interest are usually taxable. Settlements for non-physical claims such as employment disputes are often taxable.
Results are general estimates and not legal advice. Laws vary by jurisdiction — consult a qualified attorney.