Work out the lawyer's percentage, the tax on it, disbursements and the amount you actually keep from a settlement or judgment.
Contingency fee agreements are common in personal injury, wrongful dismissal and some insurance claims. The lawyer is paid a percentage of what you recover, and usually nothing if you recover nothing. What you keep depends on three things the headline percentage does not show: tax on the fee, disbursements, and what the percentage is applied to (the settlement alone, or the settlement plus any costs paid by the other side).
How to use it. Enter the gross amount recovered as the agreement defines it, your percentage, the sales tax on the fee (fee x your tax rate, for example 13% HST in Ontario), and the disbursements you must repay, including tax on them.
Formula. Lawyer's fee including tax = amount x percentage + tax on the fee. Amount left = amount - fee including tax - disbursements.
Worked example (illustrative). A $120,000 settlement at 30% gives a fee of $36,000. HST at 13% on the fee is $4,680. Disbursements including tax are $6,500. You keep $120,000 - $36,000 - $4,680 - $6,500 = $72,820, about 61% of the gross amount.
Limits. Some agreements use a sliding scale (a lower percentage if the case settles early) or apply different rates to different heads of damages; run the calculator once per tier. In British Columbia, personal injury contingency fees are capped by law society rules, and Ontario requires a prescribed standard form agreement. Read the contingency fee rules by province and the worked settlement example.
Lawyer Fees, Cost Factors and 2026 Rules
How contingency fee agreements work in Canada, Ontario's standard form and banned matter types, BC's personal injury caps, Quebec practice and the clauses to read first.
Worked Estimates and Hiring Checklists
A personal injury settlement worked through to the net amount: contingency percentage, costs, HST, disbursements, interest on disbursements and subrogated claims, with checks.
Lawyer Fees, Cost Factors and 2026 Rules
How the main lawyer fee arrangements in Canada work, the same matter priced under each one, and how to choose the arrangement that suits your risk and budget.
