Arbitration Cost Calculator

Arbitration is a private dispute resolution process in which the parties agree to submit their dispute to one or more neutral arbitrators whose decision (called an award) is typically binding. Arbitration is an alternative to litigation and is common in commercial contracts, employment agreements, consumer disputes, and international transactions.

The American Arbitration Association (AAA) charges filing fees based on the amount in controversy. Under the Commercial Arbitration Rules, filing fees for claims of $10,000 to $75,000 are $975; for claims of $75,000 to $150,000, the fee is $1,850; for $150,000 to $300,000, it is $2,800. Arbitrator compensation is separate and is charged at the arbitrator's hourly or daily rate. AAA also charges case management fees.

JAMS (Judicial Arbitration and Mediation Services) filing fees for non-employment arbitrations start at $1,750 for claims under $250,000. JAMS arbitrator rates are typically $400 to $600 per hour (sometimes higher for very experienced arbitrators). JAMS charges a 12% case management fee on all arbitrator fees.

In commercial arbitration, costs are typically split between the parties or allocated by the arbitrator at the end of the proceeding. Some arbitration agreements specify that the party initiating the arbitration pays the filing fee. Consumer and employment arbitration agreements often must comply with AAA or JAMS consumer or employment supplementary rules, which may shift more costs to the business.

For straightforward disputes, arbitration can be faster and cheaper than court litigation, primarily due to reduced discovery and a simpler process. However, for complex multi-party disputes or those requiring extensive discovery, arbitration costs (particularly arbitrator fees) can rival or exceed litigation costs. The arbitrator's hourly or daily fees are a significant cost driver that does not exist in court litigation.