Settlement Calculator

A legal settlement is a negotiated resolution between parties that avoids a court trial.
In civil cases (personal injury, employment disputes, breach of contract) the amount is built from economic damages, non-economic damages, and the risk of losing at trial.

Formula (common framework): Settlement Value = Economic Damages + Non-Economic Damages × Multiplier − Comparative Fault Reduction

What each variable means:

• Economic Damages: quantifiable financial losses: medical bills, lost wages, property damage, future medical costs, lost earning capacity.
• Non-Economic Damages: pain and suffering, emotional distress, loss of enjoyment of life. These are harder to quantify.
• Multiplier: applied to economic damages to estimate pain and suffering. Typically 1.5× to 5× depending on injury severity, permanence, and impact on daily life.
• Comparative Fault Reduction: if you are found partially at fault, damages are reduced proportionally. In a pure comparative fault state, 30% fault = 30% reduction. Some states bar recovery entirely if you are more than 50% at fault.

Factors that increase settlement value:

• Clear liability (defendant’s fault is obvious)
• Severe or permanent injuries
• High medical expenses
• Strong documentary evidence
• Sympathetic plaintiff
• Defendant has deep pockets or good insurance

Factors that decrease settlement value:

• Shared fault or ambiguous liability
• Pre-existing conditions
• Delays in seeking medical treatment
• Poor documentation
• Policy limits (insurance caps)

Worked example: Personal injury case. Medical bills: $45,000. Lost wages: $18,000. Economic damages = $63,000. Injury is moderately severe, multiplier = 3×. Non-economic estimate = $63,000 × 3 = $189,000. Plaintiff was 20% at fault. Total before fault reduction = $252,000. After 20% reduction = $201,600.

The calculator reports that as the top of a range. It also runs the multiplier half a step lower, at 2.5×, which gives $63,000 × 3.5 × 0.8 = $176,400, so the estimate reads $176,400 to $201,600. The half-step is there because nobody agrees on the multiplier to a decimal place, and quoting one figure to the dollar implies a precision this method does not have.

What you actually keep

Attorneys typically take 33% on contingency before trial, or 40% if the case goes to trial. On the $201,600 above that is $66,528 in fees, leaving $135,072. Case costs (filing fees, expert witnesses, deposition transcripts, medical record retrieval) come out on top of that, often $5,000 to $25,000 on a case this size, and the retainer agreement decides whether they are taken before or after the fee. Ask which. On a one-third contingency the difference is worth several thousand dollars.

Always consult a licensed attorney. This calculator provides an educational estimate only.