What this calculator does

Run this scenario in DocketMath using the Cost Of Delay calculator.

DocketMath’s Cost of Delay Modeler helps you quantify the financial impact of time in an Illinois matter by estimating how the value of money changes as months (or years) pass. Instead of relying on “delay feels expensive,” this model turns timing assumptions into a numeric range you can use in planning, communications, or internal decision-making.

Because you asked for an Illinois-specific guide, this walkthrough uses the Illinois general statute of limitations (SOL) framework as the default timing anchor:

• General SOL Period (default): 5 years
• General Statute: 720 ILCS 5/3-6
• Source: https://ilga.gov/ftp/Public%20Acts/101/101-0130.htm?utm_source=openai

Important scope note (for your expectations):

The core idea (in plain terms)

You provide inputs such as:

• Estimated delay duration (e.g., “3 months from now” vs “18 months”)
• Annual discount rate or cost-of-capital assumption
• Expected monthly/annual costs attributable to delay (e.g., rent, staffing, carrying costs)
• Monetary impact amount you want to treat as “at risk” during the delay window (e.g., damages claim value you’re trying to time-adjust)

The calculator then produces outputs such as:

• Time-adjusted cost of holding funds or performance in limbo
• Net present value (NPV)-style estimates (value today vs later)
• Incremental difference between two timelines (e.g., 6 months vs 18 months)

In other words, it turns a schedule question into a money question.

Primary CTA

Use the tool here: /tools/cost-of-delay

When to use it

Use the Cost of Delay Modeler when timing is a meaningful driver of cost or risk. Typical triggers include:

1) You’re comparing schedule options

If you’re choosing between:

• faster vs slower case processing,
• settlement timing strategies,
• business decisions that depend on litigation posture,
• or staffing decisions tied to litigation milestones,

…the model helps translate “months matter” into dollars.

2) You need a defensible internal estimate

Even when you’re not making a legal argument, stakeholders often ask:

• “What does delay cost us?”
• “How sensitive is the estimate to assumptions?”
• “What happens if the resolution slips by 3–9 months?”

DocketMath’s model gives you a clear audit trail of assumptions.

3) You want to link timeline planning to Illinois SOL context

Illinois has a general SOL period of 5 years under 720 ILCS 5/3-6. That can be useful for planning when you’re building a high-level litigation timeline or evaluating the consequences of extended delays.

Gentle note: This guide is about financial modeling, not legal advice.

Step-by-step example

Below is a concrete example you can mirror in DocketMath. It uses the general Illinois 5-year SOL period as a default reference point—not as a claim-specific rule.

Scenario: Comparing “no delay” vs “prolonged resolution”

Imagine a business wants to estimate the financial impact of resolving a matter sooner vs later.

Assumptions (set these as inputs in DocketMath)

• General SOL reference period: 5 years (60 months)

  • Source basis: 720 ILCS 5/3-6
• Delay duration A (faster path): 6 months
• Delay duration B (slower path): 18 months
• Annual discount rate (cost of capital): 8%
• Monthly holding/carry cost due to delay: $1,500
  (e.g., overhead, monitoring, temporary staffing)
• At-risk monetary amount to time-adjust: $120,000
  (e.g., expected monetary value you’re treating as “available” only when resolved)

Step 1: Model the faster timeline (6 months)

1. Enter delay = 6 months.
2. Set the annual discount rate = 8%.
3. Input monthly delay cost = $1,500.
4. Add the at-risk monetary amount = $120,000.

What you’ll typically see:

• A time-adjusted component reflecting carrying/holding costs.
• A discounting effect on the $120,000 if realization is later.

Step 2: Model the slower timeline (18 months)

Repeat the same inputs except:

• Change delay = 18 months.

Step 3: Compare results

Compute the incremental cost of delay:

• Incremental cost = (slower estimate) − (faster estimate)

You’ll be able to answer questions like:

• “If resolution slips from 6 to 18 months, what additional cost does the model estimate?”
• “Is the model driven more by holding costs or by discounting of the larger monetary value?”

How the Illinois SOL reference shows up (without becoming “legal advice”)

If you’re planning on a longer horizon, the model can incorporate a range of delay periods anchored to the default limitations context:

• Default general window: 5 years (60 months) under 720 ILCS 5/3-6

  • If your planned timeline is, for example, 2 years vs 4 years, both can be modeled directly as delay durations.

Common scenarios

The most useful way to apply a cost-of-delay model is to match the model inputs to the economic reality of the scenario. Here are common patterns where DocketMath’s calculator usually provides actionable results.

Scenario A: Carrying costs drive the estimate

Best when: delay mainly increases overhead, storage, maintenance, or staffing.

• Higher monthly delay cost increases sensitivity.
• Discount rate matters, but carrying cost often dominates.

Model focus checklist

Scenario B: Discounting a larger monetary amount dominates

Best when: the “value” you’re timing-adjusting is large relative to monthly costs.

• The at-risk amount becomes the main driver.
• Even small changes in the discount rate can shift results.

Model focus checklist

Scenario C: You’re estimating the cost difference between two strategic decisions

Best when: you’re comparing an early vs late outcome.

• The “incremental cost” output is usually what leadership wants.
• Run multiple timeline options (e.g., 3 months, 9 months, 15 months).

Model focus checklist

Scenario D: Modeling a “within limitations window” planning horizon

Best when: you’re building an internal forecast rather than crafting legal deadlines.

• In Illinois, the general/default SOL period is 5 years under 720 ILCS 5/3-6.
• This can be a reference horizon for planning scenarios that stretch across multiple years.

Model focus checklist

Tips for accuracy

Precision in a cost-of-delay model comes from consistent assumptions, sensible inputs, and transparent timing.

1) Use consistent time units

DocketMath typically works best when you’re consistent:

• If you use monthly delay costs, keep delay duration in months (e.g., 6 and 18).
• When you set discount rate, ensure it corresponds to the period basis the calculator uses (often annual inputs convert internally).

2) Choose a discount rate you can defend internally

Instead of picking a random percentage:

• Use your company’s weighted average cost of capital (WACC) or internal hurdle rate (if you have it).
• If not available, use a documented corporate finance assumption.

Then run sensitivity:

• Example: compare results at 6% / 8% / 10%.

3) Model costs that actually occur during delay

Avoid inflated “delay” costs that would not realistically accrue. Good cost categories:

• carrying/overhead
• staffing/temporary labor
• financing costs (if not already included elsewhere)
• risk/margin impacts you can justify

4) Keep the “at-risk amount” clean

If you input an at-risk monetary amount (like $120,000), be sure it represents:

• the value you expect to receive (or the amount you consider economically tied up) at resolution,
• and not something already adjusted for discounting or costs.

5) Document the timeline assumptions in the same terms every time

When presenting results to someone else, include:

• start point (e.g., “today,” “complaint filing date,” “planned mediation date”)
• resolution target (e.g., “6 months,” “18 months”)
• what changes between scenarios (only duration, or also costs)

Related reading

• Cost of Delay Modeler Guide for Alabama
• Cost of Delay Modeler Guide for Arizona
• Cost of Delay Modeler Guide for Colorado