Lawsuit Loan Cost Calculator
Pre-settlement funding companies quote a monthly rate or fee, not an APR — because the annualized cost is almost always far higher than it sounds. Enter your advance amount and terms to see the total payoff and the real effective APR at different case-length scenarios.
If your case takes longer than expected
Case length is the single biggest driver of what a lawsuit loan actually costs — not the advance amount. Here's the same advance and rate played out over common resolution timelines.
| Months to resolve | Total payoff | Cost of capital | Effective APR |
|---|
How this calculator works
Most pre-settlement funders quote a "monthly rate" or "monthly fee" rather than an APR, and many compound that rate on the growing balance each month rather than charging it flat. This tool applies the same math:
Compounding payoff: Payoff = Principal × (1 + r)months
Simple payoff: Payoff = Principal + Principal × r × months
Effective APR: (Payoff ÷ Principal)(12 ÷ months) − 1
The effective APR annualizes whatever rate and term you enter so you can compare a lawsuit advance against a credit card, personal loan, or line of credit on the same basis — even though litigation funding itself isn't structured or regulated as a traditional loan in most states.
Frequently asked questions
Why is the effective APR so much higher than the monthly rate? Because a monthly rate compounds. A rate that sounds small — 3% a month — compounds to roughly 42% a year, and even higher if your case runs long and the balance keeps compounding on itself.
Do I have to pay this back if I lose my case? In most states, pre-settlement funding is non-recourse — you typically owe nothing if you lose. Confirm this in writing with your specific funder, since terms and state rules vary.