Attorney Fee Calculator (Lodestar vs Contingency)

How it works

Lodestar = Σ hours × reasonable hourly rate (× multiplier); contingency fee = recovery (gross or net of costs) × %; effective hourly = contingency fee ÷ hours; client net = recovery − fee − costs

Courts asked to award or approve attorney fees use two lenses. The lodestar multiplies the hours reasonably spent by reasonable hourly rates for each timekeeper and may be adjusted by a multiplier for exceptional results, risk or delay; it governs fee-shifting statutes such as civil-rights and consumer laws. The percentage method takes a share of the recovery and is the norm in contingency retainers and common-fund class actions, with the lodestar used as a cross-check. Comparing the two shows what a contingency fee really pays per hour — often several times the hourly rate on a quick, large recovery and less than cost on a case that goes to trial — and whether costs come off the top before or after the percentage changes the client's net by the fee percentage times the costs.

Worked example

120 partner hours at $650, 340 associate hours at $375 and 160 paralegal hours at $175 make a lodestar of $233,500 (620 hours, $377 blended). A one-third contingency on a $900,000 recovery is $299,700 — an effective $483 an hour and 1.28× the lodestar — and after $45,000 of costs the client nets $555,300; deducting costs before the fee would have saved the client about $15,000.

Frequently asked questions