How to Calculate Settlement

What is Settlement?

A legal settlement value calculator estimates the present value of a proposed settlement against the probability-weighted expected trial outcome. A 60% chance of winning $200,000 at trial has an expected value of $120,000, minus litigation costs of $30,000 = $90,000. Defendants often settle for 40–70 cents on the dollar to avoid trial costs and uncertainty.

Step-by-Step Guide

1. 1Assess case strength
2. 2Propose settlement range
3. 3Negotiate agreement

Worked Examples

Common Mistakes to Avoid

• ✕Not verifying results
• ✕Ignoring jurisdiction

Frequently Asked Questions