Fees and agreements

How lawyers charge: hourly, flat fee, contingency and retainers

The common ways lawyers bill for their work, what each one means for you, and the difference between fees and costs. 5 min read

How a lawyer charges often matters as much as the rate itself. The same case can cost very different amounts depending on the arrangement, so it pays to understand the options before you sign.

Hourly fees

You pay for the time the lawyer, and often their staff, spends on your matter, usually billed in fractions of an hour (for example, tenths of an hour, or six-minute increments). Rates vary widely by location, experience and practice area. Hourly billing is common in business matters, litigation and family law. It is fair when the amount of work is hard to predict, but the total is uncertain, so ask for an estimate and for regular, itemized bills.

Flat fees

You pay one set price for a defined task, such as a simple will, an uncontested divorce, a trademark filing or a misdemeanor case through a particular stage. Flat fees make costs predictable. Check exactly what is included and what happens if the matter turns out to be more complicated, for example if a simple case goes to trial.

Contingency fees

The lawyer is paid a percentage of the money you recover, and nothing if you recover nothing. This is common in personal injury and some employment cases, and it lets people bring claims they could not otherwise afford. Professional rules require contingency agreements to be in writing, and they are generally not allowed in criminal cases or for obtaining a divorce or a specific amount of support. Our guide to contingency fees covers the details.

Retainers

"Retainer" is used in two ways. Most often it means an advance payment: you deposit money, the lawyer holds it in a client trust account, and fees are taken from it as the work is done. Unused money is generally refunded at the end. Less often it means a fee paid simply to secure a lawyer's availability. Ask which kind you are being asked for and whether it is refundable.

Hybrid and limited-scope arrangements

Some lawyers combine methods, such as a reduced hourly rate plus a smaller contingency percentage. Many also offer "limited-scope" or "unbundled" help: you handle most of the matter yourself and pay the lawyer for specific pieces, like reviewing a document or coaching you before a hearing. This can make help affordable when full representation is not.

Fees versus costs

Fees pay for the lawyer's work. Costs are expenses of the case: court filing fees, service of process, copies, deposition transcripts, expert witnesses and travel. Costs can be significant, and depending on the agreement you may owe them even if you lose. Ask who pays costs, when, and whether they come out before or after a contingency percentage is calculated.

What the rules require

Lawyers' ethics rules require fees to be reasonable and the basis of the fee to be explained to the client, preferably in writing and ideally before work begins. If you think a bill is wrong, ask the lawyer for an explanation first; many state bars also run fee dispute programs. See what to do if you have a problem with your lawyer.

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This guide is general information, not legal advice, and laws differ from state to state. For advice about your situation, talk to a lawyer licensed in your state. Last reviewed November 4, 2026.