As a result of the settlement, the Ravens will carry an additional $177,000 against the 2015 salary cap. The NFL had placed a $1.411 million cap charge against the Ravens' 2014 cap when Rice filed his grievance. So, the additional $177,000 will carry over into 2015.
Rice was seeking $3.529 million, the amount he would have earned had he played the remaining 14 games of the regular season after being suspended for two games.
He was suspended indefinitely Sept. 8 for violating the NFL's personal conduct policy after a video of him hitting Janay, his then-fiancée, emerged and began widely circulating. The Ravens released Rice that day, and his contract was terminated.
The incident occurred in February 2014 inside an elevator at an Atlantic City, New Jersey, casino.
Rice was reinstated in December after a neutral arbitrator overturned his NFL suspension on appeal. Commissioner Roger Goodell had initially suspended Rice for two games before increasing the punishment to an indefinite ban after the video surfaced.
Rice, who did not play last season, has repeatedly apologized for his actions.
Rice, 28, is a three-time Pro Bowler and helped the Ravens win Super Bowl XLVII. He rushed for 6,180 yards and 37 touchdowns in six seasons with Baltimore.