Movies, books, or stories you have heard may make you assume that hiring an attorney is expensive. After all, most of the media emphasizes high-powered lawyers focused on billing as many hours as possible.

Regardless, there are more options than you have read on your Kindle or seen on Netflix. Law firms know not everyone has the financial means to engage their services. Accordingly, they often have flexible options for different situations like property disputes, or accidents.

In this article, we will examine the most common billing methods and how they work. This will help you understand how much a lawyer costs.

Hourly Rate

Attorneys use hourly rates as a standard method of charging clients for legal services. As the name suggests, firms charge for each hour they work on a case.

The total cost to the client will depend on several factors, including experience, location, and case complexity. However, a study by Motley Fool suggests the average rate in the U.S. is $270 per hour.


Clients that hire an attorney on an hourly basis have more transparency. They receive invoices that describe the time spent on each task. As a result, this arrangement can make it easier to budget for their legal concerns.

In the long run, it can be more cost-effective as well. Your overall costs compared to the damages you receive may be lower than with other methods.


Even legal cases that look simple can run into substantial complications. Therefore, it is almost impossible to estimate the total cost. As the old military adage goes, no plan survives the first encounter with the enemy. What you believe will be a cakewalk could become an arduous uphill march.

Real World Example

While it can be uncomfortable, you may have started to think about estate planning. This process often involves combining wills and trusts to reduce the probability of probate. There are also tax incentives for those who have well-considered plans.

Attorneys may only need a handful of hours to secure your estate for your beneficiaries. While it may cost a little more than self-service, you also have an ironclad plan. You will have confidence that no loopholes or room for ambiguity leads to lengthy legal disputes. That guarantee can make a few hundred dollars seem like a bargain.

Now, assume you hire a local firm at $270 per hour. If they need five hours, your invoice will be around $1,350. With some potential administrative fees added for physical copies, filing, etc., you could have another $75 to pay. In this scenario, you have an expense of $1,425.

Flat Fee

Attorneys use a flat fee billing structure to charge clients for a specific task or project. The cost depends on the complexity and how much other firms make in the area. A business may also use something similar to this, and hire an attorney on retainer.

Unlike hourly rates, the flat fee covers all work done, regardless of how long it takes. This transparency and predictability in billing is a significant advantage. However, clients must clarify what services the fee covers and any additional expenses that may materialize.


Many people find peace of mind knowing what they should pay for legal services. The risks are on the firm based on how long it takes them to accomplish their tasks.

A flat fee also aligns objectives between attorneys and their clients. Both parties have substantial incentives to resolve their legal concerns efficiently.


Have you heard of scope creep? Project managers use this term to refer to shifting requirements. They can often sneak up on everyone and cause their costs to soar compared to original estimates.

The same principle can happen with law firms. Additional work or consultation fees can still apply, and their contracts may require you to pay. Due to these factors, a flat fee may not be appropriate for a case that needs long-term attention.

Real-World Example

Some legal tasks are easy to predict. The time an attorney needs to complete research, file paperwork, and receive the results can be consistent.

One example would be a situation where you want to start an LLC. The firm may offer a free consultation to collect the essential details. After a short meeting, they can create the necessary paperwork and file it the next day.

Since this process is highly predictable, they may only charge $500 for their expertise. The state fees are usually low to start a company but assume it costs around $125. Overall, you can have confidence that you are in good legal standing for only $625.

Contingency Fee

Contingency fees are a type of fee structure that some attorneys use when representing clients. The firm agrees to take someone’s case without charging ANY upfront fees. Instead, the attorney’s fees are a percentage of any settlement or award. If they are not unsuccessful in winning your case, generally the attorney does not make anything.

Contingency fees are a regular practice in personal injury cases. This fee structure allows clients who may not have the financial resources to have representation. But is a contingency fee cheaper than other ways to pay a lawyer? he percentage charged by the attorney can be high. It ranges from 25-40% of the settlement or damages in most circumstances.

Some states establish limits to keep lawyers from overcharging for cases won on contingency. For example, the Maine Legislature has set the following restrictions for law firms:

  • 33.3% on the first $100,000
  • 25% for the subsequent $100,000
  • 20% for damages that exceed $200,000


Many people do not have the financial resources to shoulder the burden of hourly fees. Accordingly, the opportunity to avoid upfront fees can be a tremendous benefit. It also gives people access to good legal representation who would not have it otherwise.

Moreover, the attorney would then have a more vested interest in winning the case. After all, if they are not successful, then they do not get paid.


The high fees for this arrangement can limit the overall benefit of taking legal action. An additional risk is that attorneys can charge for their expenses even when they lose in some states.

There are also not as many legal situations where this payment method is available. Many personal injury cases have clear lines of fault that give a lawyer confidence they will succeed. But they may not have the same level of conviction for a discrimination lawsuit that depends on proving intent.

Real-World Example

When most people think of personal injury cases, car accidents are probably the first to come to mind. After all, they are frequent, and many individuals do not get through their lives without an incident.

So, imagine that you get rear-ended on the interstate during a multi-car collision. You experience whiplash, and the insurer considers your car a total loss. Thankfully, you are relatively unscathed. But the long-term effects can be harsh for your health and overall quality of life.

Unfortunately, many insurance companies will lowball their settlement offers. These situations often motivate someone to hire a lawyer on contingency to file a lawsuit, or pursue a better settlement by threatening a suit.

In this case, it is unlikely that your litigation will go to trial. Instead, the mediation process can yield better results than accepting the first offer from an adjuster. For the sake of argument, assume that your legal representation secures $50,000. If their contingency fee is 30%, they would receive $15,000, and you would be left with $35,000.

Other Possible Costs

When you hire an attorney, you should remember there may be extra expenses. For instance, you may have to pay filing fees when submitting legal documents to the court. The amount of these fees can vary based on the type of case and the jurisdiction or location of the court.

For instance, court costs like fees for serving papers or court reporters may apply. These expenditures can accumulate quickly and are usually the client’s responsibility.

Furthermore, your attorney may charge for other services they employ to win your case. A few of the most frequent needs are expert witnesses, travel costs, and document production. There can also be costs for copies, postage, and other administrative duties.

Speak with your lawyer about any possible extra costs beforehand. How they charge is critical, but examining these elements will give you the complete picture.

How Much Does an Attorney Cost? Find Out Today!

As you have read in this article, knowing how much you will pay an attorney depends on many elements. The only way to know for sure is to talk to one and make a decision that fits your needs.

We have a wide-reaching network of highly-regarded attorneys for you to consider. Schedule a consultation today and keep your legal concerns from getting worse.

You can request help through our site or call (866) 345-6784 to talk to a friendly representative!

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