Why use this calculator
The decision to litigate is usually made on the merits and only later costed, which is the wrong way round. In England and Wales the losing party normally pays the winner's costs as well as their own, so the real exposure of a defended claim is close to double the fees you are quoted, plus the claim value itself if you lose.
That figure routinely exceeds what is in dispute, which is precisely why so many claims settle at the door of the court. This calculator puts both sides of the ledger in front of you before you commit: what the case costs to run, and what losing it costs on top.
Seeing the costs as a percentage of the claim is often enough on its own to redirect a dispute into mediation.
How to use it
- Choose the complexity that matches your case, since hours are driven far more by the number of disputed issues and the volume of disclosure than by the amount at stake.
- Enter how many months you expect the case to run from letter before action to trial, together with your solicitor's hourly rate and a realistic average of their hours each month.
- Add the barrister fees you have been quoted for advice, pleadings and the trial brief, then the number of expert witnesses the court is likely to permit and the cost of each.
- Finally enter the value of the claim, which sets the court issue fee and lets the calculator express your costs as a proportion of what is actually at stake.
What each result means
- Your own costs
- Everything you pay your own lawyers and the court, whatever the outcome. Win and you recover perhaps two thirds of it from the other side, not all of it.
- Costs you carry even if you win
- The part of your own legal costs you would not get back from the other side even after a win, because costs are usually recovered at about 65% on the standard basis. Weigh this against what the claim is worth.
- Average monthly spend
- Your own costs divided by the expected length of the case in months, as a rough budget for funding it. Real spending is uneven, with the heaviest months around disclosure, expert reports and trial.
- Solicitor fees
- Time costs, normally the largest single item. They rise with the number of disputed issues and the volume of disclosure, not with the value of the claim.
- Barrister fees
- Counsel's charges for advice, drafting statements of case and the brief for trial. A multi-day trial brief is usually the biggest single invoice in the case.
- Expert witness costs
- Reports, answers to questions and attendance at trial. The court must permit each expert, so budget only for those likely to be allowed.
- Court fees
- The fee to issue the claim, at five per cent of its value capped at £10,000, plus the hearing fee payable before trial. Both are paid up front.
- Disbursements
- Everything bought in: searches, copying, couriers, travel and transcripts. Small individually but material across a long case.
- Exposure to the other side's costs
- What you may be ordered to pay if you lose. Recovery on the standard basis typically lands between 60 and 70 per cent of the winner's actual bill.
- Worst realistic outcome
- Losing outright: your costs, their recoverable costs and the sum claimed. This is the number to compare any settlement offer against.
- Costs as a share of the claim
- Your own costs expressed against the amount in dispute. Anything approaching or exceeding 100 per cent signals that litigation is the wrong tool.
- Total solicitor hours
- Hours implied by the duration and complexity. Compare it against the costs budget your solicitor files, which the court can cap.
The formula
Solicitor fees = monthly hours x complexity multiplier x hourly rate x duration in months
Court fees = 5 per cent of the claim value capped at £10,000, plus a hearing fee of £1,175 above £25,000 or £545 below it
Disbursements are taken at 8 per cent of solicitor fees. Your own costs are the sum of solicitor fees, barrister fees, expert costs, court fees and disbursements.
Adverse exposure = your own costs x 65 per cent, reflecting typical recovery on the standard basis
Worst realistic outcome = own costs + adverse exposure + claim value
How this number is used in practice
The costs-shifting rule is what makes English litigation uniquely risky. The general rule is that the unsuccessful party pays the successful party's costs, assessed on the standard basis, which in practice recovers roughly sixty to seventy per cent of what was actually spent. A winner is therefore still out of pocket, and a loser pays close to twice their own bill.
On the multi-track both sides file costs budgets which the court reviews and can cap, so a budget that is refused leaves you unable to recover the excess even if you win. Ask your solicitor for the budgeted figure rather than an informal estimate.
Part 36 offers change the arithmetic sharply and are the main tactical instrument in civil litigation. If you reject a Part 36 offer and then fail to beat it at trial, you normally pay the other side's costs from the date the offer expired, even though you won the case overall.
A claimant who beats their own offer can recover indemnity costs, enhanced interest and an additional amount. A well-pitched offer made early transfers the entire costs risk onto the other side, which is why they are often worth more than an extra month of preparation.
Because the exposure so often exceeds the sum in dispute, the realistic question in most claims under a hundred thousand pounds is not whether you would win but whether you can resolve it without trial. Mediation typically costs a few thousand pounds for a day and settles a substantial majority of cases that reach it.
Courts expect parties to attempt alternative dispute resolution, and an unreasonable refusal to mediate can itself result in costs sanctions against a party who goes on to win.
Worked examples
A moderate £150,000 claim over 14 months at £275 an hour, 15 hours a month, with one £12,000 expert
Own costs of £103,045 and a worst realistic outcome of £320,024 once adverse costs and the claim itself are added
A simple £30,000 claim over 8 months at £200 an hour with no experts
Own costs of £21,635, which is 72 per cent of the value of the claim itself
A complex £2m commercial dispute over 24 months at £450 an hour with three experts
Own costs of £766,047 and a worst realistic outcome of £3.26 million if the claim is lost outright
When people use it
- Deciding whether a claim is commercially worth bringing or defending
- Comparing the cost of litigating against a settlement offer on the table
- Preparing a board or budget paper before authorising legal action
- Setting a realistic litigation reserve in company accounts
- Testing whether mediation is the better route given the costs-to-claim ratio
Tips
- The loser normally pays the winner's costs, so budget for roughly double your own fees when assessing the downside.
- Winning does not make you whole. Standard basis assessment recovers around two thirds of what you actually spent.
- Make a well-judged Part 36 offer early. Beating it at trial shifts the costs burden onto the other side from the date it expired.
- Ask for the costs budget filed at the court, not an informal estimate. The court can cap it, and unbudgeted costs are irrecoverable.
- After-the-event insurance can cover adverse costs exposure, but the premium is substantial and is often irrecoverable from the loser.
- Do not refuse mediation out of hand. An unreasonable refusal can attract a costs sanction even against the party who wins.
What it assumes, and where it stops being accurate
- Assumes a defended claim in England and Wales that proceeds to trial. Scotland and Northern Ireland have different rules, fees and terminology.
- Court fees use the money claim scale: 5 per cent of the claim value capped at £10,000, plus a multi-track hearing fee. Fees are reviewed periodically.
- Adverse costs recovery is modelled at 65 per cent. Standard basis assessment commonly lands between 60 and 70 per cent, and indemnity costs run higher.
- Assumes no conditional fee agreement, damages-based agreement or after-the-event insurance, each of which changes the risk profile substantially.
- Ignores VAT, which is charged on solicitor and counsel fees and adds 20 per cent for anyone unable to recover it.
- Excludes the cost of your own time and that of your staff, which on a document-heavy commercial case can rival the legal fees.
Terms used on this page
- Standard basis
- The usual measure for assessing recoverable costs, resolving any doubt in favour of the paying party.
- Part 36 offer
- A formal settlement offer carrying automatic costs consequences if it is not beaten at trial.
- Costs budget
- The schedule of anticipated costs filed on the multi-track, which the court may approve or cap.
- Disbursement
- An expense bought in on your behalf, such as court fees, experts, searches or transcripts.
- Adverse costs
- The other side's costs you may be ordered to pay if your claim or defence fails.
Questions people ask
- Will I recover my legal costs if I win?
- Usually some of them. The general rule is that the loser pays the winner's costs, but assessment on the standard basis typically allows only sixty to seventy per cent of what was actually spent. Costs incurred outside an approved budget, or found disproportionate, are not recovered at all.
- What is a Part 36 offer?
- A formal settlement offer with automatic costs consequences. Reject one and fail to beat it at trial and you normally pay the offeror's costs from the date it expired, even if you won. A claimant who beats their own offer can recover indemnity costs and enhanced interest.
- How much are court fees?
- For a money claim the issue fee is five per cent of the value, capped at £10,000. A hearing fee follows before trial, currently £1,175 on the multi-track. Both are payable in advance and are recoverable from the other side if you win.
- What is a no win no fee agreement?
- A conditional fee agreement means your solicitor is paid only on success, taking a success fee of up to a hundred per cent of their base costs, capped at twenty-five per cent of damages in personal injury. It removes the fee risk but not your exposure to the other side's costs.
- Can I be forced to mediate?
- A court cannot compel a settlement, but it can order a stay for alternative dispute resolution and it expects parties to engage. An unreasonable refusal to mediate is treated as unreasonable conduct and can cost a successful party part or all of their costs recovery.
- Why do costs so often exceed the claim?
- Because costs track the number of disputed issues and the volume of documents rather than the sum at stake. A bitterly contested £40,000 claim with three witnesses and heavy disclosure can cost more to run than a straightforward £400,000 claim on agreed facts.
Use this with
Litigation Cost Estimator answers one part of the question. These pick up where it stops: Employment Tribunal Cost Estimator, GDPR Fine Risk Calculator, Unfair Dismissal Compensation Calculator and Discrimination Compensation Calculator.
Where these figures come from
Figures and rules on this page follow United Kingdom law.
- GOV.UK: Court fees for civil claims (EX50). Issue and hearing fees used in the court fee calculation
- Civil Procedure Rules, Parts 36 and 44. Offers to settle and the general rules on costs and assessment
- Judiciary of England and Wales: Guideline hourly rates. Benchmark solicitor hourly rates by grade and region
- Civil Justice Council: ADR and costs sanctions. Guidance on mediation and the consequences of refusing it
Litigation Cost Estimator produces an estimate for general information. It is not financial, tax, medical, legal or engineering advice. read the full disclaimer. Spotted a wrong number? Report it and it gets fixed. The form picks up this calculator and the inputs you used.