How restitution and interest work after rescission
When a contract is rescinded or cancelled, each side gives back what it received so that neither is left better off. If the benefit was money, the party holding it is usually charged interest for the time it had use of the funds. Enter the amount, the date it was received, the repayment date and the rate that applies, and this tool shows the days counted, the daily interest and the total to return.
Restitution following avoidance or rescission is described in the Restatement (Second) of Contracts ยงยง370-373 and in the Restatement (Third) of Restitution and Unjust Enrichment ยง54, and courts commonly add prejudgment interest measured from the date of the payment being returned. The rate comes from state law rather than any federal statute, which is why the field starts empty. Days here are counted from the day after receipt through the repayment date, on a 365-day year. The principles described are those recognized as of September 2026, and both the availability of interest and the rate vary by state and by claim.
Rescission may also require returning the benefit of goods or services received, which is valued separately and is not part of this calculation. This calculator is for reference only and is not legal advice. Consult a licensed attorney about your specific situation.
Frequently asked questions
Courts generally measure it from the date the money was received, since that is when the other party lost the use of it, although some claims start interest only from the demand.
No. Restitution restores what was transferred, while damages compensate for losses caused by a breach. A party usually has to choose between the two theories.