In a contingency case the firm takes a percentage of the recovery, then costs come off, and the client nets the rest. The order — fee on gross vs net of costs — changes everyone’s number, so model it explicitly.
The example
$100k recovery, 33.3%, $8k costs.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Fee 33.3% | $33,300 |
| 3 | Net to client | → $58,700 |
The formula
The formula:
How it works
How it works:
- Attorney fee = recovery × fee percentage (often 33–40%).
- Net to client = recovery − fee − case costs, in this common ordering.
- Some agreements take the fee on the net of costs instead —
(recovery - costs) × fee_pct— which lowers the fee. - Always state which base the percentage applies to in the fee agreement.
“Fee on gross” vs “fee on net of costs” is not a rounding detail. On a $100k recovery with $8k costs at 33.3%, fee-on-gross is $33,300 and fee-on-net is $30,636 — a $2,664 swing that comes straight out of the client’s pocket or the firm’s. Many jurisdictions regulate the default; the agreement must spell out the base. This is illustrative math, not legal advice.
Try it: interactive demo
Recovery, fee %, costs.
Variations
Fee on net of costs
Costs off first:
Tiered contingency
Higher % if it goes to trial:
Effective fee rate
Fee ÷ recovery:
Pitfalls & errors
Define the base. Fee on gross vs net of costs changes every number.
Costs vs fee. Case costs (filing, experts) are separate from the attorney fee.
Not legal advice. Fee rules vary by jurisdiction — this is illustrative math.
Practice workbook
Frequently asked questions
How do I calculate a contingency fee in Excel?
What's the difference between fee on gross and fee on net?
How do I model a tiered contingency?
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