Gross-to-Net Formula Basics
A basic framework is gross settlement minus attorney fee minus case costs minus lien and reimbursement obligations.
Your final net can change if lien amounts or costs are updated near closing.
Settlement Breakdown Calculator Guide: Gross vs Net Recovery
Gross settlement and net recovery are different. Breakdown math helps you compare proposals and avoid payout surprises.
Key Points
- Start with gross recovery, then subtract fees and case costs.
- Account for liens, reimbursements, and unpaid medical balances.
- Use written payoff estimates before final settlement approval.
How to Use Calculator Outputs
Use projected ranges, not single-point assumptions, when any lien or future expense is still uncertain.
Keep every line item tied to a document so you can validate assumptions quickly.
Frequently Asked Questions
Is net payout usually much lower than gross settlement?
It can be, depending on fees, costs, and medical repayment obligations.
Can I ask for updated net estimates during negotiation?
Yes. Updated net modeling is reasonable as offer terms change.
Should I rely on verbal estimates only?
No. Written breakdowns reduce misunderstandings and support informed decisions.