Liquidated Damages Cap Calculator

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

About Liquidated Damages Cap Calculator

The cap on liquidated damages determines how many weeks of delay are actually protected: at 0.5% per week and a 10% cap, protection runs out after twenty weeks. Beyond that the buyer bears further delay unless the contract provides other remedies.

Formulas

Cap amount

Cap = Contract value x Cap %

Weeks to cap

Weeks = Cap % / Rate per week %

Damages payable

Payable = min(Rate x Weeks x Contract value, Cap)

Worked example

With the default values below, Liquidated Damages Cap Calculator returns Liquidated damages payable of $2,940,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Contract value: 42,000,000
Liquidated damages rate per week: 0.5
Cap as % of contract value: 10
Expected delay: 14

Results

Liquidated damages payable: $2,940,000.00
Cap amount: $4,200,000.00
Weeks of delay to reach the cap: 20.0
Damages foregone because of the cap: $0.00

Step by step

1Values used
2Cap amount
3Weeks to cap
4Damages payable
5Liquidated damages payable= 2,940,000.00
6Cap amount= 4,200,000.00
7Weeks of delay to reach the cap= 20.0
8Damages foregone because of the cap= 0.00

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 cap is typical?

5-15% of contract value depending on sector and the buyer's exposure to delay. Suppliers price higher caps into the bid.

What happens once the cap is reached?

The buyer's delay remedy is exhausted. Termination rights and step-in provisions become the only meaningful levers, so they must be drafted carefully.