How lawyer fees and retainers work
Understanding how a lawyer charges is one of the most important parts of hiring one. This guide explains the common fee arrangements, how retainers work, and what to check before you sign.
Last reviewed: September 24, 2026 · VettedCounsel
Educational information, not legal advice. Written for U.S. consumers. Rules and official resources vary by state and change over time. Confirm anything important with the official source for your state or with a qualified lawyer. How we work.
The ground rules
Each state sets its own professional conduct rules for lawyers, and most are based on the American Bar Association’s Model Rules. Under ABA Model Rule 1.5, a lawyer’s fees and expenses must be reasonable, and the scope of the work and the basis of the fee should be communicated to the client, preferably in writing, before or soon after the work begins. Your state’s version may differ, so ask the lawyer to explain the terms that apply to you.
Common fee arrangements
Scroll the table sideways to see every column.
| Arrangement | How it works | Questions to ask |
|---|---|---|
| Hourly | You pay for the time spent, often in fractions of an hour, at rates that can differ for partners, associates, and paralegals. | What are the rates for each person? What is the billing increment? Can you estimate the total? |
| Flat fee | One set price for a defined piece of work. | Exactly what does the fee cover? What would cost extra? |
| Contingency | The lawyer is paid a percentage of any money recovered, and usually nothing if there is no recovery. Common in some employment and injury cases. | What is the percentage at each stage? Are expenses taken out before or after the fee? What do I owe if there is no recovery? |
| Mixed | A combination, such as a reduced hourly rate plus a smaller contingency. | How do the parts work together? What is the most I could owe? |
Under Model Rule 1.5, a contingency fee agreement must be in writing and signed by the client, and must explain how the fee is calculated and how expenses are handled. The Model Rules also bar contingency fees in divorce matters that depend on securing the divorce or on the amount of support or property awarded.
How retainers work
A retainer usually means money you pay in advance. The lawyer then bills against it as work is done, and may ask you to top it up when it runs low. Under ABA Model Rule 1.15, fees and expenses paid in advance are kept in a client trust account and withdrawn only as they are earned or incurred.
If the representation ends early, Model Rule 1.16 says the lawyer should refund any advance payment that has not been earned. Some agreements describe part of a payment as non-refundable; ask how that works and how your state treats it.
Expenses to ask about
- Court filing and service fees.
- Expert witnesses, investigators, or valuations.
- Deposition and transcript costs.
- Copying, courier, travel, and other administrative charges.
What to check in the fee agreement
- What the lawyer will and will not do (the scope of the work).
- The fee arrangement and the rates for each person who may work on your matter.
- The retainer amount, how it is applied, and when it must be replenished.
- Which expenses are billed separately, and whether large ones need your approval.
- How often you will be billed, and what detail invoices will show.
- What happens to unused funds, and how either side can end the arrangement.
Reviewing invoices
Read each invoice when it arrives. If an entry is unclear, ask about it promptly and politely. If you cannot resolve a disagreement, many state bars run fee-dispute or fee-arbitration programs; check the official resource for your state.