Settlement Net-to-Client Calculator
Break down a settlement into attorney fees, costs advanced, and medical liens to see exactly what your client takes home — before any disbursement leaves IOLTA.
Before funds leave IOLTA, the settlement statement must account for every dollar: the attorney fee, costs the firm advanced during litigation, medical lien payoffs, and what's left for the client. This calculator computes the full disbursement breakdown and shows each dollar's destination as a proportional bar.
Use it when reviewing a closing statement, explaining proceeds to a client, or confirming the math before any disbursement is made.
Settlement Net-to-Client Calculator
Updates live as you change any number.
Filing fees, expert witnesses, medical records, depositions
Provider liens, Medicare, Medicaid, ERISA claims
Client Net Proceeds
out of $250,000 gross settlement
Disbursement Breakdown
Attorney fee calculated on the gross settlement before cost deductions (pre-expense method). Net to client = gross − attorney fee − costs advanced − medical liens. Does not include taxes owed by the firm on the fee.
How the Math Works
Step 1: Attorney Fee = Gross Settlement × (Fee % ÷ 100)
Step 2: Costs Reimbursed = Total Costs Advanced (firm recovers these)
Step 3: Lien Payoffs = Total Medical Liens
Step 4: Net to Client = Gross − Attorney Fee − Costs − Liens
This calculator uses the pre-expense fee method — the most common in PI practice: the contingency fee applies to the gross settlement before deducting case costs. Some agreements use the post-expense method, where costs are subtracted first and the fee applies to the reduced amount, producing a smaller fee and larger client net. If your agreement is post-expense, deduct costs from the gross before entering it above to get the right number.
What Each Line Means on the Statement
Attorney Fee
The firm's earned fee from the case. It flows from IOLTA directly to the firm's operating account and must match the signed fee agreement. Document it on the closing statement before any transfer.
Costs Advanced
Litigation expenses fronted by the firm — filing fees, expert witnesses, medical record retrieval, court reporter costs, deposition expenses. These are reimbursed to the firm from settlement proceeds, separate from the attorney fee, and must be itemized on the settlement statement.
Medical Lien Payoffs
Outstanding claims from medical providers, Medicare, Medicaid, or ERISA health plans. Every lien must be verified and documented before disbursement — unresolved liens create personal liability for the attorney. Enter the post-negotiation lien amount for the most accurate result.
Net to Client
What the client actually receives after all deductions. This number should be explained clearly before the settlement agreement is signed — surprises at the closing table create disputes and bar complaints. A written breakdown sent to the client in advance prevents most of them.
What This Calculator Doesn't Include
- Income taxes owed by the firm on the attorney fee (typically 35–40% for pass-through entities)
- Negotiated lien reductions — enter the post-negotiation amount for accuracy
- Post-expense vs. pre-expense fee method differences (see note above)
- Medicare Set-Asides or government benefit reimbursements beyond standard liens
- Structured settlement annuity allocations
For complex multi-lien cases or non-standard fee structures, speak with someone at Mana.
Frequently Asked Questions
How is attorney fee calculated on a personal injury settlement?
In most PI cases the contingency fee is applied to the gross settlement amount before case costs are deducted — the pre-expense method. For example, a 33.33% fee on a $250,000 settlement is about $83,325. Some fee agreements use the post-expense method, where case costs are subtracted from the gross first and the fee applies to the smaller remaining amount, which produces a smaller fee and a larger client net.
What is the difference between costs advanced and the attorney fee?
The attorney fee is the firm's earned compensation for handling the case. Costs advanced are out-of-pocket litigation expenses the firm fronted — filing fees, expert witnesses, medical record retrieval, court reporters, depositions. Costs are reimbursed to the firm separately from the fee and must be itemized on the settlement statement so the client can see exactly what they were charged.
Why do medical liens reduce the client's net proceeds?
Medical providers, Medicare, Medicaid, and ERISA health plans can place liens against a settlement to recover the cost of treatment related to the injury. These liens must be paid from settlement proceeds before the client receives their share. Unresolved liens create personal liability for the attorney, so each one must be verified, negotiated where possible, and documented before any disbursement leaves the trust account.
Does this calculator handle taxes owed by the firm?
No. The net-to-client figure reflects only the disbursement math — gross minus attorney fee, costs advanced, and medical liens. It does not model income taxes the firm owes on the fee, which for most pass-through entities run 35–40%. For full settlement accounting, trust reconciliation, and tax planning, talk to someone at Mana.