PI Settlement Runway Calculator
See how many months a single settlement's net attorney fee can carry your personal injury firm at your current overhead.
For PI firms running on contingency fees, every settlement matters — not just for the client, but for your firm's survival. This calculator tells you how many months your firm can operate on the net fee from a single settlement, given your current overhead.
Use it before you take a case to pressure-test your pipeline, or after settlement to understand how much runway you've just bought.
Settlement Runway Calculator
Updates live as you change any number.
Your Result
Net Attorney Fee
$116,655
Monthly Burn Rate
$25,000
Based on your $116,655 net fee divided by $25,000/month in operating expenses. This does not include case costs advanced or taxes owed on the fee.
How the Math Works
Step 1: Net Fee = Settlement Amount × (Fee % ÷ 100)
Step 2: Runway Months = Net Fee ÷ Monthly Operating Expenses
The net fee is your firm's gross take from the settlement before taxes and case cost reimbursements. Monthly operating expenses should include payroll, rent, software, insurance, and any other fixed overhead — but not case costs advanced (those are recovered separately from settlement proceeds before the net fee is calculated).
What to Do With This Number
Under 3 months
This settlement alone won't carry you through the gap to your next close. You need either more cases in the pipeline, a line of credit, or a reduction in overhead.
3–6 months
Solid, but keep your pipeline active. Make sure at least one case is within 3–4 months of resolution so you don't hit a gap before this runway runs out.
6+ months
You have real breathing room. Consider using part of this fee to build a cash reserve, pay down any line of credit, or invest in intake and marketing to keep the pipeline strong.
What This Calculator Doesn't Include
- Taxes owed on the attorney fee (typically 35–40% of net for pass-through entities)
- Case costs advanced that are reimbursed from the gross settlement before fee calculation
- Lien payoffs that reduce gross settlement
- Revenue from other cases settling in the same period
For a full picture of your firm's cash position, speak with someone at Mana.
Want a Real Cash Flow Model for Your Firm?
We build month-by-month forecasts for PI firms that account for case pipelines, settlement timing, IOLTA flows, and overhead — so you always know where you stand.
Frequently Asked Questions
What is settlement runway for a PI law firm?
Settlement runway is how many months your firm can keep operating on the net attorney fee from a single settlement, given your current monthly overhead. For contingency-fee firms with unpredictable case timing, knowing your runway tells you whether one settlement buys you enough breathing room to reach your next close — or whether you need more cases in the pipeline, a line of credit, or lower overhead.
What should I include in monthly operating expenses?
Include the fixed overhead it takes to keep your firm running each month — payroll for attorneys and staff, rent, malpractice insurance, software, marketing, and intake costs. Do not include case costs advanced on specific matters; those are recovered from settlement proceeds before the net fee is calculated, so they don't belong in your monthly burn rate.
Does this calculator account for taxes on the fee?
No. The runway figure is based on the gross net attorney fee before taxes. For pass-through entities, taxes typically take 35–40% of that fee, so your real spendable runway is shorter. Treat this number as an upper bound and set aside taxes before counting on the full fee to cover overhead.
How much runway should a PI firm aim for?
There's no single right answer, but most healthy contingency-fee firms aim to keep at least 6 months of overhead covered at any time so a slow stretch between settlements doesn't threaten the firm. Under 3 months is a warning sign; 3–6 months is workable if your pipeline is active; 6+ months gives you room to build reserves and invest in growth.