Breach of Contract Damages Calculator

Estimate damages for a breach of contract claim. Calculate expectation damages, consequential losses, and mitigation costs for business and consumer contract disputes.

⚖️ Contract Law📐 Damages = Expected Benefit - Cost Saved - Mitigation

Contract value ($)

Benefit already received ($)

Your additional costs due to breach ($)

Costs you saved by not completing ($)

Contract type

Please enter valid values.

Formula & Reference

Variable	Formula	Units
Breach of Contract Damages Calculator	Damages = Expected Benefit - Cost Saved - Mitigation	$ damages

Step-by-Step Examples

Example 1

Incomplete Construction

$50K contract, $10K paid, $5K extra costs, $8K labor saved.

Damages = $50K - $10K + $5K - $8K = $37K
Extra costs: finding new contractor, delays
Costs saved: your own finishing work

✓ $37,000 expectation damages

Example 2

Supplier Breach

$20K goods contract, $0 received, $3K emergency replacement markup.

Damages = $20K - $0 + $3K - $0 = $23K
UCC: difference in contract and cover price

✓ $23,000

Example 3

Service Contract

$15K consulting contract abandoned at 25%.

Received: $3,750 (25% x $15K)
Remaining: $11,250
Minus work not done: subtract your cost savings

✓ Varies by completion costs

Real-World Applications

⚖️

Business Owners

Calculate damages from a vendor or contractor who breached a contract.

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Commercial Attorneys

Estimate claim value for breach of contract litigation or arbitration.

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Contractors

Understand your exposure when you breach or are accused of breaching.

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Consumers

Evaluate whether a merchant's failure to perform is worth pursuing.

Common Mistakes to Avoid

⚠️

Forgetting the duty to mitigate

You must take reasonable steps to minimize your losses after a breach. If you didn't mitigate, courts may reduce your damages. Keep records of mitigation efforts.

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Confusing damages types

Expectation damages (what you expected to gain) are different from reliance damages (what you spent) and restitution (what the other party gained). Courts typically award expectation damages.

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Claiming unforeseeable consequential damages

Consequential damages must have been foreseeable at the time of contracting. Lost profits are sometimes recoverable; idiosyncratic losses often are not.

Frequently Asked Questions

What are expectation damages? ▾

Damages that put you in the position you would have been in had the contract been performed. Formula: Expected benefit - costs saved - benefits received + additional losses.

What are consequential damages in contract law? ▾

Lost profits or other downstream losses caused by the breach that were foreseeable when the contract was formed. Example: a restaurant loses $50K in business because a supplier failed to deliver for an event.

Can I get attorney fees in a contract case? ▾

In the US, each party typically bears their own attorney fees (American Rule) unless the contract specifies fee-shifting or the case involves bad faith or consumer protection violations.

What is the statute of limitations for breach of contract? ▾

Varies by state: typically 3-6 years for written contracts, 2-4 years for oral contracts. UCC (goods) claims: 4 years. Start counting from when the breach occurred.

When should I hire an attorney vs small claims? ▾

Use small claims if the claim is under your state's limit ($5,000-$25,000) and the case is straightforward. Hire an attorney for larger amounts, complex contracts, or claims involving lost profits or significant consequential damages.