How to calculate a penalty

If information about the penalty measures are made to your contract, then in the context of violation of obligations, the debtor pays you a penalty - the monetary compensation of damage. It is important to be able to make compensation correctly.

A penalty or penalty is paid as a penalty. The nature of the violation determines the type of penalty. The fine is most often punishable to non-compliance with the quality of execution, and penny is the delay in the timing of execution. The amount of the fine is unchanged and paid once. The value of the penalty is the variable value, and its calculation is due to several points.

The penalty does not require calculations, since its size is prescribed in the agreement and does not depend on any factors. This is the solid amount that the debtor pays once. For example, your contract is listed on monetary punishment in 100,000. Now, in case of violation of the contract, you have the right to recover from the debtor marked with 100,000 lump-sum payments.

Penalty is charged when one of the contract participants does not cope with the obligations to the established date. Penya is a kind of counter that begins a countdown from the first day of delay. The amount of penalty is increasing every detained day. Penalty is most often represented as a percentage of common debt. However, it can be determined and as a solid amount for every overdue day.

A specific agreement dictates specific information for calculating penalties. However, with the data difference, there is a general system for determining the amount of compensation. To do this, we need the following information:

total debt size by agreement;
percentage of penalties;
the number of days of delay.

We will analyze the calculation of the penalty using specific numbers. Under the terms of the transaction, the extreme date of execution is established on the 1st of August. At the time of August 11, we have information:

aggregate debt under the contract - 100,000;
percentage of penalties for each day of delay - 1%;
delay in the implementation of requirements - 10 days.

We need to calculate the amount of compensation for the real 10 days of execution delay. The calculation formula will look as follows: total debt at 100,000 is multiplied by 1% penalty and multiplied by 10 days of delay. The total amount of 10,000 and there is the amount of recovery to which you can qualify for 10 overdue days.