Formal dynamic and computational models are a useful method of conceptualizing complex and dynamic phenomena in psychology because they allow researchers to understand how a representation of a phenomenon behaves as a complex system over time. Despite the clear advantages, organizational psychologists seem to shy away from using formal dynamic and computational models. This chapter focuses on how formal dynamic and computational model approaches can advance our understanding of psychological contract dynamics. The authors first discuss the advantages of formal dynamic and computational models, and how using them can address the existing issues in the psychological contract literature. Then they focus on different levels of analysis and different types of dynamic and computational models that are relevant to psychological contract research. They end this chapter with an overview of useful books, journals, articles, and websites for researchers who are interested in building their own formal dynamic or computational model.