How Much Does a Demand Letter Cost?

You need to send a demand letter, but how much should it cost? The answer ranges from $0 to over $2,000, depending on how you do it.

Let's break down every option so you can make the right choice for your situation and budget.

Quick Cost Comparison

OptionTypical CostBest For
Write it yourself$0 (+ postage)Simple, clear-cut disputes
Free online generator$0Any dispute; professional formatting
Online legal services$50-$200Mid-range disputes, some guidance
Attorney (flat fee)$300-$1,000Complex disputes, high-value claims
Attorney (hourly)$500-$2,000+Ongoing legal matters

What Lawyers Charge for Demand Letters

Flat Fee Pricing

Most attorneys who offer demand letter services charge a flat fee. Based on marketplace data from ContractsCounsel, the average flat fee is:

$440-$600
Average flat fee for an attorney-drafted demand letter

But that's just the average. Here's what affects the price:

  • Complexity: A straightforward "pay what you owe" letter costs less than one involving multiple legal theories
  • Research required: If the attorney needs to research applicable laws, expect to pay more
  • Location: Lawyers in New York or San Francisco charge more than those in smaller markets
  • Experience: A senior partner charges more than a solo practitioner
  • Specialization: Attorneys who specialize in your type of dispute may charge a premium

Hourly Rate Pricing

Some attorneys bill hourly for demand letters, especially if the matter is complex or they anticipate ongoing work:

  • Average hourly rate: $200-$400/hour
  • Time for a demand letter: 2-5 hours (including consultation, research, drafting, and revisions)
  • Total cost: $400-$2,000+

Watch out: Hourly billing can escalate quickly. A "simple" demand letter that requires a phone consultation, fact review, legal research, drafting, and one round of revisions can easily hit 4-5 hours at $300/hour.

"Letter Only" vs. Full Representation

Make sure you understand what you're paying for. A flat-fee demand letter typically includes:

  • Brief consultation about your situation
  • Drafting the letter
  • One round of revisions
  • Sending the letter on firm letterhead

It does not typically include follow-up negotiation, responding if the other party writes back, or filing a lawsuit. Those services cost extra.

Online Legal Services

Several online platforms offer demand letter services at lower cost than traditional attorneys:

Pricing Range: $50-$200

  • Template-based services ($50-$100): You fill in details, they populate a template. Limited customization.
  • AI-assisted services ($0-$100): AI generates a letter based on your inputs. Quality varies widely.
  • Attorney-reviewed services ($100-$200): AI or template generates a draft, a real attorney reviews it.

Important distinction: A letter sent from an online service doesn't carry attorney letterhead unless specifically stated. If the main value of paying is the perceived authority of a lawyer's name, make sure that's what you're getting.

Free Options

Write It Yourself

You can absolutely write your own demand letter for free. Your only cost is postage for certified mail (about $7-10). For clear-cut disputes with good documentation, this is often the best option.

Free Online Generators

Our free demand letter generator creates a professional, legally-sound demand letter at zero cost. Answer questions about your situation, and the AI generates a customized letter with proper legal citations for your state. No signup required, no hidden fees.

Legal Aid Organizations

If you qualify based on income, legal aid organizations in your area may help you draft a demand letter for free. Check LawHelp.org to find free legal services near you.

Law School Clinics

Many law schools run free legal clinics where law students (supervised by licensed attorneys) help with demand letters and other straightforward legal matters.

When Is It Worth Paying for a Lawyer?

Ask yourself these questions:

What's the claim worth?

If you're trying to recover $500 and a lawyer charges $400 for a demand letter, the math doesn't work. General rule: the demand letter cost shouldn't exceed 10-20% of your claim.

How complex is the dispute?

If you need to cite multiple statutes, address contract ambiguities, or navigate regulatory requirements, legal expertise adds real value.

Who are you dealing with?

A letter on attorney letterhead carries more weight when dealing with:

  • Large corporations with legal departments
  • Insurance companies
  • Government entities
  • Parties who have already lawyered up

Do you plan to sue?

If you're seriously considering a lawsuit, the demand letter is just the opening move. It may make sense to hire the attorney who will represent you in court to also write the demand letter, creating a seamless transition.

The sweet spot for most people: Use a free demand letter generator for claims under $10,000 with clear documentation. Save the attorney fees for if you actually need to go to court.

Hidden Costs to Watch For

Consultation Fees

Some attorneys charge $100-$300 just for the initial consultation, even before writing the letter. Always ask if the consultation is included in the flat fee.

Revision Fees

Most flat fee quotes include one round of revisions. Additional changes may be billed hourly.

Mailing Costs

Some firms charge separately for certified mail, courier services, or faxing. These fees can add $20-$50.

Follow-Up Charges

If the recipient responds or wants to negotiate, your attorney will charge for any follow-up communication. This can add hundreds to the total cost.

"Retainer" Requirements

Be wary of attorneys who want a retainer deposit beyond the letter fee. If you just need a demand letter, you should be able to pay a flat fee for that specific service.

Skip the Lawyer Fees

Create a professional, legally-sound demand letter for free. No hidden costs, no subscriptions.

Create Your Free Demand Letter

Key Takeaways

  • Attorney-drafted demand letters typically cost $300-$1,000 (flat fee) or $500-$2,000+ (hourly)
  • Online legal services range from $50-$200
  • Free options include writing your own or using a free generator like FreeDemandLetter.com
  • The letter cost shouldn't exceed 10-20% of your claim value
  • For claims under $10,000 with clear documentation, free options are usually sufficient
  • Watch for hidden costs: consultation fees, revisions, mailing charges, and follow-up billing

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