According to google:-
Punitive damages are not calculated using a set formula, instead, courts consider various factors like the severity of the defendant's misconduct, their financial situation, the harm caused to the plaintiff, and the need to deter future similar behavior to determine the appropriate amount, with the primary goal being to punish the defendant and discourage others from acting similarly; essentially, the calculation is based on the egregiousness of the defendant's actions rather than the plaintiff's direct losses.