Contingency Fee vs. Hourly Fee Cost Comparator
Compare the total out-of-pocket cost of a contingency fee arrangement versus an hourly billing arrangement to determine which is more financially advantageous for your legal matter.
Formulas Used
Contingency Fee — Expenses Deducted After Fee:
Contingency Fee — Expenses Deducted Before Fee:
Hourly Fee:
Effective Cost Rate = Total Cost ÷ Settlement × 100
Break-Even Hours = Contingency Total Cost ÷ Hourly Rate
Assumptions & References
References
- Cornell Law — Legal Information Institute
- Congress.gov — U.S. Legislative Information
- U.S. Department of Justice
- Equal Employment Opportunity Commission
- FTC — Legal Resources
- Supreme Court of the United States
- United States Code — Office of the Law Revision Counsel
- Electronic Code of Federal Regulations