# Late Delivery Liquidated Damages Calculator

> Source: https://netray.co/tools/late-delivery-liquidated-damages-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Compute delay damages from order value, weekly rate, grace days and cap, and see what is left of your margin.

## Category

compliance-legal

## Industry

Discrete Manufacturing

## Audience

- Buyer
- Contracts manager
- Sales manager
- Controller

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Value of late goods

**Key:** value

**Type:** number

**Default:** 36000

**Min:** 0

**Step:** 500

**Unit:** $

**Help:** Value of the delayed items, or the total order if your clause says so.

#### Rate per week

**Key:** rate

**Type:** number

**Default:** 0.5

**Min:** 0

**Step:** 0.1

**Unit:** %

**Help:** Percent of value per week of delay as written in the clause.

#### Days late

**Key:** days_late

**Type:** slider

**Default:** 24

**Min:** 0

**Max:** 120

**Step:** 1

**Unit:** days

#### Grace period

**Key:** grace

**Type:** number

**Default:** 3

**Min:** 0

**Step:** 1

**Unit:** days

**Help:** Days of delay allowed before damages start.

#### Cap

**Key:** cap

**Type:** number

**Default:** 10

**Min:** 0

**Step:** 1

**Unit:** % of value

#### Partial weeks count as

**Key:** full_weeks

**Type:** select

**Default:** 1

**Options:**

##### Full week

**Value:** 1

##### Pro rata

**Value:** 0

#### Gross margin on the order

**Key:** margin

**Type:** number

**Default:** 18

**Min:** 0

**Step:** 1

**Unit:** %

**Outputs:**

#### Chargeable days

**Key:** chargeable

**Expr:** max(days_late - grace, 0)

**Format:** days

#### Weeks charged

**Key:** weeks

**Expr:** if(eq(full_weeks, 1), ceil(chargeable / 7), chargeable / 7)

**Format:** decimal

#### Damages before cap

**Key:** raw

**Expr:** value * rate / 100 * weeks

**Format:** currency

#### Cap amount

**Key:** capamt

**Expr:** value * cap / 100

**Format:** currency

#### Liquidated damages payable

**Key:** ld

**Expr:** min(raw, capamt)

**Format:** currency

**Primary:** true

**Description:** Lower of the accrued amount and the cap.

#### Share of cap used

**Key:** cap_used

**Expr:** ld / capamt * 100

**Format:** percent

#### Margin remaining after damages

**Key:** margin_left

**Expr:** value * margin / 100 - ld

**Format:** currency

**Primary:** true

**Description:** Negative means the delay wipes out the profit on this order.

**Chart:**

#### Damages by days late

**Type:** line

**X:** days_late

**From:** 0

**To:** 120

**Steps:** 40

**Series:**

- ld

**Disclaimer:** Planning aid only, not legal advice. The contract wording governs: whether partial weeks count, whether the rate applies to the late part or the whole order, grace periods, and exclusions such as force majeure. Check the actual clause.

## Content

**Intro:** Delay clauses look simple until you must work out the number: per day or per week, on the late part or the whole order, with or without a grace period and a cap. This calculator applies those rules in order and shows the effect on your margin.

**Sections:**

#### How to use it

**Body:** Enter the value of the late goods and the weekly rate from the clause. Set the days late, the grace period and the cap. Choose whether partial weeks count as full weeks, which is common in contracts, or pro rata. The result shows chargeable days, damages before the cap, the cap, and the final amount. Use it as a supplier to understand your exposure, or as a buyer to fill in the notice letter.

**Bullets:**

- Use the contract value basis stated in the clause
- Subtract the grace period before counting weeks
- Apply the cap after computing the accrued amount
- Test several delay lengths with the chart

#### The formula

**Body:** Chargeable days equal days late minus grace, floored at zero. Weeks equal chargeable days divided by seven, rounded up if partial weeks count as full. Damages before cap equal value times rate times weeks. The payable amount is the lower of that figure and the cap amount, where cap amount equals value times cap percent. Per day clauses work the same way if you convert the rate to a weekly equivalent.

#### Worked example

**Body:** Order value USD 36,000, rate 0.5 percent per week, 24 days late with 3 days grace, so 21 chargeable days is exactly 3 weeks. Damages are 36,000 times 0.5 percent times 3, which is USD 540. The cap is USD 3,600, so the cap is not reached. Gross margin of 18 percent is USD 6,480, leaving USD 5,940. A 120 day delay with a 17 week charge would approach the cap quickly.

#### How to read the chart

**Body:** The curve rises in steps if partial weeks count as full, or in a straight line if pro rata, and flattens when the cap is reached. The flat part tells you the supplier has nothing more to lose from contractual delay damages, which is the point where other remedies such as termination matter more. Compare the cap with the profit on the order.

**Cta:** If you want delays by supplier and order line calculated automatically from your ERP, Netray can help build that on your own infrastructure.

**Faq:**

#### Are liquidated damages the same as a penalty?

**Answer:** No. Liquidated damages are a genuine pre-estimate of loss and are generally enforceable. A penalty is meant to punish and may not be enforced in many legal systems. Your jurisdiction decides the line.

#### Does the cap include or exclude other remedies?

**Answer:** It depends on the wording. Some contracts make liquidated damages the sole remedy for delay up to the cap, after which termination is allowed. Others let you claim additional losses. Read the clause.

#### What does the grace period do?

**Answer:** It delays the start of the charge. If the grace is 3 days and delivery is 10 days late, only 7 days are chargeable. Grace periods are often used to avoid claims for tiny slips.

#### Should I use the whole order value?

**Answer:** Only if the clause says so. Many clauses apply to the value of the late goods only. Using the full order when only part is late overstates the claim and weakens your position.

## Search terms

liquidated damages calculator, late delivery penalty calculator, delay damages calculation, supplier delay penalty percentage per week, contract delay penalty calculator, liquidated damages cap calculation

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json