lawyer cost

How Much Does a Lawyer Cost?

Legal AssistantResources Leave a Comment

How much does a lawyer cost?” is a great question to which the answer is almost always, “it depends.” The truth is, lawyer fees can cost you an arm and a leg, regardless of the type of legal case you’re facing. Simple cases can run into thousands of dollars, while the more complex ones can quickly rival the cost of a small luxury car.

So, as you ask yourself, “how much do lawyers get paid?” it’s essential to factor in your budget and what the outcome is worth to you. To answer this question, let’s delve into the six factors that determine how much a lawyer costs. Read on!

Billing Arrangement

Most attorneys bill their clients under one or more of the following arrangements.

  • Hourly: In the legal field, billing is usually done hourly whereby a lawyer costs an amount that’s proportionate to the time spent working on your case. Generally, average lawyer fees range from $150 to $1000 per hour and are agreed upon before a case kicks off.
  • Contingency fees: The attorney must win your case (the contingency) before receiving payment for the work they’ve put in (the outcome). So, no win means no payment. Nonetheless, the fees are illegal, where there are concerns that a lawyer may act unethically to win a case.

Contingency fees are usually applicable in cases relating to:

  1. Workplace injuries
  2. Personal injuries
  3. Traffic accidents
  4. Violations by creditors for the harassment of debtors
  5. Medical malpractice
  6. Patent infringements
  7. Violations by employers against their staff
  8. Issues in real estate

A contingency fee lawyer is also known as a ‘no win, no fee’ attorney who’ll usually keep 33-40% of the settlement from your case.

Lawyer retainer fee: It’s a fixed charge that may be based on an attorney’s hourly rate. Consider a retainer as a down payment against the billing of future costs. It’s placed in a special account from which the cost of services is deducted as they accrue. Unless deemed unreasonable, retainer fees are non-refundable.

However, this also means that your lawyer is on standby to handle all your legal matters over a specified timeframe. This type of billing arrangement can spill over into different factors. So, ensure that your lawyer concisely explains the scope of a given retainer fee to avoid any future misunderstandings from cropping up.

Statutory fee: These are the costs that a court or statute sets that you’ll pay your lawyer. Statutory fees are applicable in probate, bankruptcy, and other court cases.

Lawyer consultation fee: While some attorneys offer free consultations, others prefer to charge for their time, ranging from $50-100 for the first hour. Doing so helps them cull out real clients from the free advice seekers.

Flat Rate: On the surface, flat rate fees may seem like the ideal package deal because you evade paying more for your case than what’s required. But, the catch-22 with flat rates is that they grant your lawyer the right to bill you for extra costs that may crop up in your case.

For example, a flat rate attorney working on an uncontested divorce case can charge you for all court appearances. Depending on the legal matter, flat rates may range from $300 to $1200.

Prestige and Size of the Law Firm

It’s a no-brainer that lawyers from larger and well-established law firms will charge you more than solo practitioners and smaller law firms. Therefore, the prestige and size of a law firm is a vital factor to keep in mind when determining the cost of hiring a lawyer.

law firm office

Moreover, if you’re faced with a complex legal matter, it may be worth the extra costs to work with a more prestigious law firm. Otherwise, hiring a solo practitioner will aid in cutting down lawyer fees.

Type of Legal Work

Particular types of legal work are more costly than others. It’s the determining factor in the type of billing arrangement that a lawyer will implement. For instance, highly specialized divisions of law, such as patent prosecution, usually cost more than day-to-day legal services like estate planning.

A Lawyer’s Expertise

The cost of a lawyer is directly tied to the number of years of experience they have under their belt. So, just like fine wine, a lawyer gets better with age. Attorneys that have been practicing for more than 20 years, for instance, have more expertise in multiple fields of law.

It should then come as no surprise that such lawyers’ services are in higher demand than those with only 5 years of experience. So, as per the law of demand and supply, hiring an attorney with great expertise will cost you more.


The cost of a lawyer varies from one jurisdiction to another. For instance, lawyers practicing in rural areas are cheaper and have a smaller pool of clients than those in big cities like New York. There’s also less competition from other attorneys.

You’ll find lawyers in farming communities like Iowa charging $100-200 per hour. And, an attorney in the same legal field but located in New York charges $300-500 per hour.


It’s no secret that paying legal fees can be a pain. So, are lawyer fees tax-deductible? The answer is yes, but not always. For instance, the perfect ‘cocktail’ of 40% federal and state taxation could mean that $1000 in legal fees can be sliced to $600.


However, keep in mind that personal legal fees are non-deductible which means they can easily dent your wallet. Some examples of personal legal cases are divorces and lawsuits for slander. Business cases, on the other hand, are deductible.

The Take-Home Message

How much do lawyers make from legal cases?” is an essential issue that you’ll want to know about before hastily hiring one. Luckily, these 6 factors paint a vivid picture of what to expect when it comes to pricing. And remember, cheap doesn’t always mean better, so don’t cut corners. Do your due diligence, which involves asking around. After all, the right attorney can make all the difference.

Are you interested in getting real price comparisons from attorneys in your area? Talk to a Laws 101 attorney to give you an assessment on your case.

Leave a Reply