How contingency fees work and what you take home
Last checked November 8, 2026
Most injury lawyers charge a contingency fee, a share of what you recover. The American Bar Association says it is often one-third to forty percent.1 Your take-home is smaller than the settlement minus the fee, because case costs and medical repayments can also come out. Percentages and rules vary by state and by agreement.
What percentage do lawyers take from a car accident settlement?
In a contingency fee, the lawyer agrees to take a fixed percentage of the money recovered. The ABA says that is often one-third to forty percent.1 The Florida Bar describes the same idea for injury cases: the lawyer may agree to accept part of the money you recover as the fee.2 A contingent fee is payable only if the case is successful.3
There is no single national rate. Some agreements raise the percentage if a lawsuit is filed or the case goes to trial. California law requires a contingency contract to say the fee is not set by law and is negotiable, unless a special cap applies.4 Ask what the rate is, and whether it changes at each stage.
A worked one-third example: what you take home
EXAMPLE ONLY. These numbers are made up to show the math. They do not predict any case or any amount, and your agreement may work differently.
| Line | Costs taken after the fee | Costs taken before the fee |
|---|---|---|
| Settlement (example) | $30,000 | $30,000 |
| Case costs (example) | $1,500 | $1,500 |
| One-third fee | $10,000 (one-third of $30,000) | $9,500 (one-third of $28,500) |
| Medical repayment (example) | $6,000 | $6,000 |
| What you take home in this example | $12,500 | $13,000 |
Look at the two columns. The same settlement and the same percentage give two different results, only because of the order. That is why this one line in your agreement matters so much. A lower medical repayment, or a higher one, would change the result again.
Are costs taken out before or after the lawyer's fee?
Your agreement should say. North Carolina's rule requires a contingent fee agreement to be in a writing signed by the client,5 and to state whether expenses are deducted before or after the fee is calculated.6 California's State Bar tells people to make sure the agreement states the percentage and whether the lawyer's share is figured before or after other costs.7 Many other states have similar rules, but the exact wording varies.
What costs can come out of a settlement?
A fee pays for the lawyer's work. Costs are the separate money spent on your case. These may include:
- Court filing fees
- Fees for medical records and police reports
- Expert witness fees
- Costs for depositions and court reporters
- Mail, copies and travel
Do not assume you owe nothing if you lose. California's State Bar says that whether you win or lose, you will have to pay some or all of the court costs and other expenses, which can be quite high.8 The Texas State Law Library says that too: you may still have to pay court costs regardless of whether you win or lose.9 Some lawyers agree to cover costs if there is no recovery. Get the answer in writing.
Who else gets paid from the settlement?
Medical repayments are often the surprise. A hospital may have a lien, and health plans may want money back. If you had Medicare, its conditional payments must be repaid when a settlement is made.10 Some states limit these claims. In Arizona, one-third of a third-party recovery is exempt from provider liens.11 Ask to see the final numbers before the money goes out.
Questions to ask before you sign a fee agreement
- What is the percentage? Does it go up if a lawsuit is filed, or at trial?
- Are costs taken out before or after the fee?
- Who pays the costs if we lose?
- Will you try to lower my medical bills and liens? Is that included in the fee?
- What if I change lawyers partway through?
- Will I get a written statement showing how the money was split?
You can ask to take the agreement home and read it. Ask about anything you do not understand. You can also ask the lawyer for a lower rate. Your state bar may have consumer information on fee agreements and on how to resolve a fee dispute.
Questions
How much do personal injury lawyers take from a settlement?
The ABA says a contingent fee is often one-third to forty percent of the amount recovered.1 Your agreement controls, and rules vary by state.
Do I owe my lawyer if I lose?
A contingent fee is payable only if the case is successful,3 but you may still owe costs.8 Read your agreement.
Does the fee agreement have to be in writing?
In many states, yes. North Carolina's rule requires a writing signed by the client.5 Check your own state.
Is the percentage negotiable?
California law requires a statement that the fee is negotiable, unless a special cap applies.4 In any state, you can ask.
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Guides
- Pain that shows up days after a crash: when to get checked
- Hit by a driver with no insurance: what you can do
- How long does a car accident settlement take?
- How much is my injury claim worth? The factors that decide it
- How to get a police report for a car accident, and what to do if it is wrong or missing
- Getting paid for missed work and lost wages after a crash
Accidents
Sources
- American Bar Association, checked 2026-11-08. “In a contingent fee arrangement, the lawyer agrees to accept a fixed percentage (often one-third to forty percent) of the amount recovered.”
- The Florida Bar, checked 2026-11-08. “the lawyer who represents the person suing may agree to accept a part of the money the client recovers as the fee for services.”
- American Bar Association, checked 2026-11-08. “A contingent fee is a fee that is payable only if your case is successful.”
- Cal. Bus. & Prof. Code § 6147, checked 2026-11-08. “a statement that the fee is not set by law but is negotiable between attorney and client.”
- North Carolina State Bar, Rule 1.5, checked 2026-11-08. “A contingent fee agreement shall be in a writing signed by the client and shall state the method by which the fee is to be determined”
- North Carolina State Bar, Rule 1.5, checked 2026-11-08. “and whether such expenses are to be deducted before or after the contingent fee is calculated.”
- State Bar of California, checked 2026-11-08. “If you agree to a contingency fee, make sure the written fee agreement specifies the lawyer’s percentage and whether their share will be figured before or after other costs are deducted.”
- State Bar of California, checked 2026-11-08. “However, whether you win or lose your case, you will have to pay some or all of the court costs and other expenses, which can be quite high.”
- Texas State Law Library, checked 2026-11-08. “you may still have to pay for the court costs—regardless if you win or lose the case.”
- CMS, checked 2026-11-08. “must be repaid to Medicare when a settlement, judgment, award, or other payment is made.”
- A.R.S. § 33-931, checked 2026-11-08. “One-third of any third-party judgment, settlement or award is exempt from any lien or assignment authorized by this section.”