If you are hiring an attorney, there is likely one question at the top of your mind: How much do lawyers cost?
Attorneys have a reputation for charging high hourly rates and with good reason. It takes many years of education to become a practicing attorney and specialized knowledge is required. Because of this, lawyers often charge hundreds of dollars per hour.
However, there is not just one answer to the question, how much is a lawyer. That’s because there are many different fee structures. In fact, in some cases, you will pay no attorney fees at all unless and until your claim is successful.
This guide helps you better understand what you might have to pay if you need a legal professional in your corner.
How Much Do Lawyers Cost?
It’s not easy to answer the question, how much is a lawyer, because the answer varies based on many factors. State and practice area are two of the most important criteria that determine what attorney fees you will owe–but other issues such as level of experience can also impact the price you pay.
No matter what type of legal matter you are involved in, your lawyer is required by the attorneys’ professional code of ethics to be fair in their fees and to explain charges to you so there should be no surprises.
How Are Attorney Fees Charged?
You don’t just need to ask, how much do lawyers cost? You also need to know how different fee arrangements are set up. There are three common payment structures for legal professionals including a contingency fee, hourly fee and flat fee.
Contingency Fee
Contingency fees are common in injury claims but are forbidden for certain types of cases, such as criminal defense.
As the name suggests, a contingency or contingent fee means that payment is contingent upon–or conditioned on–the successful outcome of the case. If the desired goal is not met, the attorney is not paid for their professional services.
When a lawyer handling a personal injury claim charges contingency fees, the attorney collects payment only if:
- The case is settled out of court with the victim obtaining compensation or
- The victim wins a lawsuit and is awarded damages that the defendant pays
The contingency fee lawyers charge for injury claims typically ranges from 25% and 40%, depending on whether a case is resolved quickly in an early settlement or goes forward to trial or even appeal.
When a lawyer charges on a contingent fee basis, this usually applies only to legal services. In some cases, you may still have to pay actual expenses associated with your case even if your lawyer doesn’t win and recover compensation for you. For example, you might have to pay court filing fees or the costs of expert witnesses–although some firms do cover these costs and don’t expect reimbursement if your case isn’t a success.
Hourly Fee
Many attorneys charge on an hourly fee basis. This means you pay them a set rate for each hour (or portion of an hour) that they work. This is a common billing practice in virtually all areas of law ranging from divorce and criminal law to estate planning to corporate law and beyond.
The hourly fee attorneys charge could range from as low as $50 or $100 per hour to as high as several thousand dollars per hour for specialized legal work performed by a top professional.
According to the Clio 2022 Legal Trends Report, the average attorney hourly rate was $313.00 in 2022. You may pay more or less depending on the kind of service you need, where you live and which attorney you hire.
Flat Fee
Finally, some attorneys charge a flat fee. This means that they give you a set price for a specific service or batch of services.
Flat fee arrangements are more common when an attorney is doing a standard, simple task with a clear scope of work. For example, a lawyer might charge you a flat fee to create a simple will or to file the paperwork for an uncontested divorce.
The amount you are charged under a flat fee arrangement varies widely depending on the nature of the legal services. The good thing about this arrangement is that you know up front exactly how much your legal bills will be unless something unforeseen happens.
Will You Need to Pay a Retainer?
In some cases, a lawyer will require a retainer.
Essentially, this means you pay a certain amount up front that the attorney then bills against. This money is prepayment for legal fees that you incur during your case. For example, your lawyer might require a $1,000 or a $2,000 retainer before beginning to work on your divorce case.
Retainers help lawyers to ensure that you have the money to pay for their services and that you are invested in your case. As the attorney works, money is deducted from the retainer. Any funds remaining when the case is over is refundable to you..
A retainer is not necessarily sufficient to cover the entire cost of legal services. But it serves as a down payment on your case. Since you may still incur additional legal expenses, always ask how much a lawyer is going to charge you, before you pay them anything.
Retainers are not required when a lawyer works on a contingent basis but are almost always required under an hourly payment arrangement. If your lawyer is working on a flat fee basis, you typically won’t have retainer but will just pay part or all of the fee up front at the time the service is provided.
Which Factors Affect Attorney Fees?
Some of the key factors that could affect attorney fees include:
- The type of case: Some types of cases can result in larger payouts than others. For example, if an attorney works on a contingent fee basis and receives a percentage of the compensation for your personal injury claim, your lawyer could receive hundreds of thousands or even millions of dollars in payment if they help you recover a large settlement.
- Where you live: Like most things, local pricing trends and costs of living affect what an attorney charges. For example, you can typically expect to pay more for a lawyer in Massachusetts, which has one of the highest costs of living of any state, compared with what you would pay a lawyer in Mississippi, which has one of the lowest. Attorneys in big cities also charge more than those in rural areas.
The level of experience your lawyer has: Lawyers with more experience and better professional credentials typically charge more money than those who are just starting out and who don’t have a proven track record of success. - The complexity of your case: If your case is more complicated, the attorney fees are generally going to be higher. This is true under any payment structure. Lawyers charge a higher flat fee for more complex issues and spend more hours working on a complex case so the total cost under an hourly fee structure is higher as well.
Look at the big picture when deciding whether an attorney’s fees are worth paying. Don’t just consider how much do lawyers cost, because you do not necessarily want to hire the cheapest lawyer. You want to find the best lawyer you can afford who will maximize your chances of prevailing in your legal claim based on their experience and past track record of success.
Should You Hire a Lawyer and Pay Attorney Fees?
Hiring a lawyer may seem like a large expense, but it is often worth the cost. Filing court paperwork and deciding on the best way to proceed with your claim can be very difficult.
You could jeopardize your entire case if you make legal mistakes such as not presenting the right evidence, not hiring the best experts to testify on your behalf or not filing your claim by the time the statute of limitations runs out.
Often, there is a lot at stake when you’re involved in the civil or criminal justice system–and you need a professional advocate on your side during the process. The cost of not paying for a lawyer could be far greater than the cost of hiring one if you make mistakes due to your inexperience with the law.
