What is a contingency fee?

A contingency fee is a payment arrangement where the attorney's fee is a percentage of the recovery. If there is no recovery, the client pays no attorney fee. This allows people without funds to pursue valid legal claims.

What is the standard contingency fee percentage?

The most common rate is 33.33% (one-third). Pre-suit settlements may be 25%, while cases that go to trial are often 40%. Some complex cases or appeals may reach 45%. Rates are negotiable.

Do I still owe case costs if I lose?

It depends on your fee agreement. Some contingency arrangements are "pure" (no costs if you lose). Others require the client to reimburse out-of-pocket costs regardless of outcome.

Are contingency fees tax-deductible?

For personal injury cases, the settlement is typically tax-free, so the fee question is moot. For taxable settlements (employment, commercial), attorney fees may be deductible. Consult a tax professional.

Can I switch from contingency to hourly billing?

Some attorneys allow conversion, but this is uncommon. If the case appears strong and likely to settle quickly, hourly billing might save money. Discuss options upfront.

What is a sliding scale contingency fee?

A sliding scale changes the percentage based on stages: 25% if settled pre-suit, 33% if filed but settled before trial, and 40% if tried to verdict. This aligns the attorney's compensation with the effort required.

Contingency Fee Calculator

Calculate attorney contingency fees and client net payout from a legal settlement. Estimate fees at 25–40% and deduct case expenses.

Case Stage

Costs Deducted

Settlement / Verdict Amount

Contingency Rate

Case Costs / ExpensesFiling, experts, depositions

Medical Liens / SubrogationHealth insurance, Medicare, etc.

Client Net Payout

$35,002.50

46.67% of the $75,000.00 settlement

Attorney Fee

$24,997.50

33.33% of $75,000.00

Case Costs

$5,000.00

Filing fees, expert witnesses, deposition costs

Medical Liens

$10,000.00

Insurance subrogation, Medicare, Medicaid

Total Deductions

$39,997.50

Effective 53.33% of settlement

Attorney Hourly Equivalent

$624.94

If attorney spent ~40 hours on case

Settlement Distribution

Client Net$35,002.50 (46.7%)

Attorney Fee$24,997.50 (33.3%)

Case Costs$5,000.00 (6.7%)

Medical Liens$10,000.00 (13.3%)

Sliding Scale Comparison

Some jurisdictions use graduated fee schedules. Here's how a typical sliding scale applies to your settlement:

Settlement Range	Rate	Fee on This Tier
First $100K	33.33%	$24,997.50
$100K–$500K	25.00%	$0.00
$500K–$1M	20.00%	$0.00
Over $1M	15.00%	$0.00
Sliding Scale Total	—	$24,997.50
Client Net (Sliding)	—	$35,002.50

Typical Contingency Rates by Case Type

Case Type	Typical Rate	Notes
Personal Injury	33.33%	Standard pre-suit rate
Medical Malpractice	33–40%	Higher costs; some states cap at 33%
Workers' Compensation	15–25%	Statutory caps in most states
Employment / Discrimination	33–40%	May include fee-shifting statutes
Product Liability	33–45%	High litigation costs
Class Action	25–33%	Courts review fee percentage

Planning notes, formulas, and examples

About the Contingency Fee Calculator

Contingency fee arrangements let a lawyer take a percentage of the recovery instead of charging the client up front. The exact percentage, when it changes by case stage, and whether costs come off the top before or after the fee are all set by the fee agreement and, in some case types, by state law.

This calculator shows the client net after the contingency fee, case costs, and liens are deducted from the settlement or verdict. It is most useful when comparing different fee percentages, checking a draft settlement statement, or understanding how much of the gross recovery actually reaches the client.

When This Page Helps

Gross settlement numbers can be misleading if contingency fees, litigation costs, and medical or insurer liens are still outstanding. This page makes those deductions visible so the client can compare offers, test different fee structures, and check whether a proposed payout matches the fee agreement.

How to Use the Inputs

Enter the expected or actual settlement amount.
Enter the contingency fee percentage (typically 25–40%).
Enter total case costs (medical records, filing fees, expert fees).
Review the attorney fee, case costs, and client net payout.
Compare different contingency rates to see how they affect your payout.

Formula used

Attorney Fee = Settlement × Contingency Rate
Client Net = Settlement − Attorney Fee − Case Costs

Example Calculation

Result: $45,002.50 client net

Attorney fee = $75,000 × 33.33% = $24,997.50. Client net = $75,000 − $24,997.50 − $5,000 = $45,002.50.

Tips & Best Practices

Negotiate the contingency percentage — it is not fixed and varies by attorney and case type.
Understand whether costs are deducted before or after the attorney's percentage is calculated.
Ask if the contingency rate increases if the case goes to trial (many agreements have tiered rates).
Clarify who pays case costs if the case is lost — some agreements require the client to reimburse costs.
Get a written estimate of anticipated case costs before signing the agreement.
Some states cap contingency fees for certain case types, especially medical malpractice.

Contingency Fees by Case Type

Personal injury: 33–40%. Medical malpractice: 25–33% (often capped by state law). Employment discrimination: 33–40%. Class actions: 25–33% of the class recovery. Workers' compensation: 15–25% (often capped).

Costs Separate from Fees

Contingency fees cover the attorney's time. Case costs — filing fees, depositions, expert witnesses, medical records, postage — are separate. These can range from a few hundred to tens of thousands of dollars for complex cases.

Evaluating Settlement Offers

Before accepting a settlement, calculate your net after fees and costs. A $100,000 settlement may net only $55,000–60,000 after a 33% fee and $5,000–10,000 in costs. Compare this net amount to the time, risk, and stress of continuing litigation.

Sources & Methodology

Last updated: March 27, 2026

Methodology

This page applies the fee structure exactly as entered by the user: it computes the attorney fee from the settlement amount and contingency percentage, then subtracts case costs and lien amounts to show the remaining client net. It also allows the fee base to change depending on whether costs are deducted before or after the fee calculation, because that detail can materially change the payout.

The page is an agreement-checking and scenario-modeling tool, not legal advice. Actual contingency arrangements vary by fee contract, case stage, state caps, court approval rules, and whether costs or liens are handled differently in the settlement documents.

Sources

Model Rules of Professional Conduct: Rule 1.5 Fees (American Bar Association)
Contingent Fee (Cornell Law School Legal Information Institute) — Background reference on contingency-fee arrangements and the role of the fee agreement.

Frequently Asked Questions

A contingency fee is a payment arrangement where the attorney's fee is a percentage of the recovery. If there is no recovery, the client pays no attorney fee. This allows people without funds to pursue valid legal claims.