Subrogation Recovery Calculator
Estimate your net subrogation recovery after attorney fees, investigation costs, and made-whole doctrine adjustments.
Formulas Used
1. Total Insured Damages = Loss Paid + Deductible
2. Fault-Adjusted Ceiling = Total Insured Damages × (Comparative Fault % ÷ 100)
3. Capped Gross Recovery = min(Gross Recovery, Fault-Adjusted Ceiling)
4. Attorney Fee = Capped Gross Recovery × (Attorney Fee % ÷ 100)
5. Net Recovery Pool = Capped Gross Recovery − Attorney Fee − Investigation Costs
6. Insurer Share Ratio = Loss Paid ÷ Total Insured Damages
7. Net Insurer Recovery = Net Recovery Pool × Insurer Share Ratio (Made-Whole Doctrine)
8. Net Insured Recovery = Net Recovery Pool × (Deductible ÷ Total Insured Damages)
9. Recovery Ratio = Net Insurer Recovery ÷ Loss Paid × 100
10. Subrogation Efficiency = Net Recovery Pool ÷ Capped Gross Recovery × 100
Assumptions & References
- The Made-Whole Doctrine requires the insured to be fully compensated before the insurer recovers; net pool is prorated by each party's share of total damages (ISO/NAIC standard practice).
- Comparative fault caps the maximum recoverable amount proportional to the third party's degree of fault (Restatement (Third) of Torts § 7).
- Attorney fees are applied to the capped gross recovery before costs are deducted, consistent with contingency-fee arrangements.
- Investigation and litigation costs are deducted from gross recovery before allocation (NAIC Subrogation Handbook, 2022).
- If the net recovery pool is negative, subrogation pursuit is economically inadvisable without other strategic considerations.
- This calculator does not account for state-specific anti-subrogation rules, ERISA preemption, or workers' compensation liens.
- Results are estimates only and should be reviewed by a licensed subrogation professional or attorney.