{
  "slug": "attorney-hourly-vs-flat-fee",
  "title": "Attorney Hourly vs Flat Fee Calculator",
  "heading": "Attorney Hourly vs Flat Fee Comparison Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/attorney-hourly-vs-flat-fee",
  "summary": "Compare total cost of hourly billing against a flat fee for the same legal matter.",
  "description": "Hourly billing charges for actual time spent and gives you a bill that fluctuates with case complexity, while flat fees fix the price regardless of how many hours the matter takes. Hourly makes sense when a case is simple and predictable, since you only pay for time actually used. Flat fees protect you when a case might balloon in scope, like a contested divorce or a litigated business dispute, because the attorney absorbs the risk of extra hours. This calculator takes your estimated hours, hourly rate, and a competing flat fee quote, and tells you the break-even hour count where both options cost the same, plus which option wins at your estimated hour count and at a pessimistic higher estimate, since legal matters routinely run 20-50% over initial time estimates.",
  "formula": "Hourly cost = hours × rate; break-even hours = flat fee ÷ rate; compare hourly cost to flat fee at estimated and pessimistic hour counts.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=attorney-hourly-vs-flat-fee",
  "inputs": [
    {
      "id": "rate",
      "label": "Attorney hourly rate",
      "kind": "number",
      "hint": null,
      "default": 350,
      "unit": "$/hr",
      "min": 50,
      "max": null
    },
    {
      "id": "estHours",
      "label": "Estimated hours needed",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": null,
      "min": 0.5,
      "max": null
    },
    {
      "id": "flatFee",
      "label": "Competing flat fee quote",
      "kind": "number",
      "hint": null,
      "default": 4500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "overrunPct",
      "label": "Pessimistic time overrun",
      "kind": "number",
      "hint": null,
      "default": 35,
      "unit": "%",
      "min": 0,
      "max": 200
    }
  ],
  "outputs": [
    {
      "id": "breakEvenHours",
      "label": "Break-even hours (hourly = flat)",
      "format": "decimal",
      "hint": null,
      "primary": true
    },
    {
      "id": "estCost",
      "label": "Hourly cost at estimate",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pessimisticCost",
      "label": "Hourly cost if case runs over",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cheaperAtEstimate",
      "label": "Cheaper option at estimate",
      "format": "raw",
      "hint": null,
      "primary": false
    },
    {
      "id": "cheaperPessimistic",
      "label": "Cheaper option if overrun",
      "format": "raw",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Attorney hourly rate: 350 $/hr",
      "Estimated hours needed: 12",
      "Competing flat fee quote: 4500 $",
      "Pessimistic time overrun: 35 %"
    ],
    "outputs": [
      "Break-even hours (hourly = flat): 12.9",
      "Hourly cost at estimate: $4,200",
      "Hourly cost if case runs over: $5,670",
      "Cheaper option at estimate: Hourly is cheaper",
      "Cheaper option if overrun: Flat fee protects you here"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter attorney hourly rate ($/hr).",
      "Enter estimated hours needed.",
      "Enter competing flat fee quote ($).",
      "Enter pessimistic time overrun (%).",
      "Read your break-even hours (hourly = flat) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "rate": 350,
        "estHours": 7.199999999999999,
        "flatFee": 2700,
        "overrunPct": 20
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "rate": 350,
        "estHours": 12,
        "flatFee": 4500,
        "overrunPct": 35
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "rate": 350,
        "estHours": 19.200000000000003,
        "flatFee": 7200,
        "overrunPct": 55
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "When should I push for a flat fee?",
      "a": "Whenever the scope of work is inherently unpredictable, like a contested custody case, a litigated business dispute, or any matter where the other side could add complexity through delay or aggressive tactics. Flat fees shift that unpredictability risk onto the attorney."
    },
    {
      "q": "Why would an attorney prefer hourly billing?",
      "a": "Hourly billing removes their risk of underestimating a matter's complexity, and it's the default for litigation where outcomes and opposing counsel's behavior are outside their control. Attorneys typically only offer flat fees for well-defined, repeatable work like an uncontested divorce, a standard will, or an LLC formation."
    },
    {
      "q": "Does a flat fee cover everything?",
      "a": "Read the engagement letter carefully. Many flat fees exclude court costs, filing fees, expert witnesses, and appeals, and some cap the flat fee to a defined scope, charging hourly for anything beyond it, like a case that goes to trial after a flat-fee negotiation attempt."
    },
    {
      "q": "Is a retainer the same as a flat fee?",
      "a": "No. A retainer is typically a deposit against future hourly billing, refundable if unused, while a flat fee is the full agreed price for defined work regardless of hours actually spent, and generally non-refundable once work begins."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/contingency-fee-net-payout",
    "https://www.revenuelab.fyi/toolbox/court-filing-service-cost",
    "https://www.revenuelab.fyi/toolbox/deportation-defense-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Attorney Hourly vs Flat Fee Calculator (https://www.revenuelab.fyi/toolbox/attorney-hourly-vs-flat-fee)"
}