Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published May 11, 2026 · Last reviewed June 26, 2026
Lawyers bill four main ways: by the hour, a flat fee, a contingency cut, or against a retainer deposit. Knowing each one lets you compare quotes and spot surprise costs before you sign.
Common in business, divorce, and complex litigation. Rates run from about $150/hr (newer lawyers, smaller markets) to $1,000+/hr (senior partners, major markets). Bills itemize each task, usually in 6-minute increments.
Used for predictable work: simple wills, uncontested divorces, basic LLC formations, some criminal defense. One price covers the defined work. Check the engagement letter for exactly what's included and what costs extra.
Standard in personal injury and some employment cases. The lawyer gets paid only on a recovery, typically 33⅓% before a lawsuit, 40% once one is filed. No recovery means no fee, though costs may still apply.
An upfront deposit (often $2,500–$10,000+) the lawyer bills against. When it runs low, you replenish it. Unused funds come back at the end of the engagement.
Fees pay for the lawyer's time. Costs (filing fees, expert witnesses, deposition transcripts, copying) are extra. Confirm whether costs are folded into any quote or billed on top.
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