Cost Of Delay in California

2 min read

Published July 14, 2026 • By DocketMath Team

Verified · primary source

This page has current canonical verification receipts.

Quoted from the source law itself. Not legal advice; confirm how it applies to your matter.

Current verified answer

California cost-of-delay: interest rate is 10; max contract rate is 10.

Calculate cost of delay

Authority and key facts

Citation: Cal. Civ. Code § 3289

View the primary source

Interest Rate: 10
Max Contract Rate: 10
Threshold Amount: 1

This article is for informational purposes only and does not constitute legal advice. Laws change frequently — verify all citations with current official sources.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Cost Of Delay in California

Under California law, the cost of delay for unpaid contract damages is set at 10% per year under Civil Code § 3289. This rate applies automatically when a contract does not specify a different interest rate, covering the period from the date the amount became due until judgment is entered. The statute governs pre-judgment interest on liquidated or readily ascertainable contract claims, ensuring compensation for the time value of money lost during the delay. The calculation follows a simple annual rate, applied to the principal owed. A worked example below demonstrates how the 10% figure translates into a specific dollar amount over time. For a precise estimate tailored to your case, use DocketMath’s calculator.

Governing authority

In California, the cost of delay rule is set by Cal. Civ. Code § 3289. The verified packet cites Cal. Civ. Code § 3289 (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=3289).

California cost of delay: the verified value is 10% under Cal. Civ. Code § 3289. The verified packet cites Cal. Civ. Code § 3289 (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=3289).

Estimate your own result: every situation has exceptions that can change the outcome. Use the cost of delay calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Calculate cost of delay