Liquidated Damages Calculator

Work out liquidated damages instantly with clear inputs, formula shown and shareable results.

About Liquidated Damages Calculator

Liquidated damages are a pre-agreed sum per period of delay, intended as a genuine pre-estimate of the employer's loss rather than a punishment. The cap is the critical figure: once reached, delay damages stop accruing and the employer's remedy shifts to termination or general damages if the contract allows.

Formulas

Accrued LDs

LDs = Contract value x Rate per week x Weeks of culpable delay

Payable

Payable = min(Accrued LDs, Contract value x Cap %)

Worked example

With the default values below, Liquidated Damages Calculator returns Liquidated damages payable of $1,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Contract value: 25,000,000
Liquidated damages rate per week: 0.5
Weeks of culpable delay: 8
Cap on liquidated damages: 10

Results

Liquidated damages payable: $1,000,000.00
Accrued before applying the cap: $1,000,000.00
Contractual cap: $2,500,000.00
Weeks of delay until the cap is reached: 20.0

Step by step

1Values used
2Accrued LDs
3Payable
4Liquidated damages payable= 1,000,000.00
5Accrued before applying the cap= 1,000,000.00
6Contractual cap= 2,500,000.00
7Weeks of delay until the cap is reached= 20.0

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

What makes liquidated damages unenforceable?

A sum out of all proportion to any legitimate interest in performance may be struck down as a penalty. A reasoned pre-estimate recorded at the time of contracting is the best protection.

Do extensions of time reduce liquidated damages?

Yes. Only culpable delay attracts LDs, so granted extensions for excusable events remove those weeks from the calculation.