The satisfaction theory of atonement is a theory in Christian theology that Jesus Christ suffered crucifixion as a substitute for human sin, satisfying God's just wrath against man's transgression due to Christ's infinite merit. The theory draws primarily from the works of Anselm of Canterbury. It has been traditionally taught in the Roman Catholic, Lutheran, and Reformed traditions of Western Christianity. Theologically and historically, the word "satisfaction" does not mean gratification as in common usage, but rather "to make restitution": mending what has been broken, or paying back what was taken. Since one of God's characteristics is justice, affronts to that justice must be atoned for. It is thus connected with the legal concept of balancing out an injustice.
Anselm regarded his satisfaction view of the atonement as a distinct improvement over the older ransom theory of atonement, which he saw as inadequate. Anselm's theory was a precursor to the refinements of Thomas Aquinas and John Calvin, which introduced the idea of punishment to meet the demands of divine justice.
The classic Anselmian formulation of the satisfaction view should be distinguished from penal substitution. Both are forms of satisfaction theory in that they speak of how Christ's death was satisfactory, but penal substitution and Anselmian satisfaction offer different understandings of how Christ's death was satisfactory. Anselm speaks of human sin as defrauding God of the honour he is due. Christ's death, the ultimate act of obedience, brings God great honour. As it was beyond the call of duty for Christ, it is more honour than he was obliged to give. Christ's surplus can therefore repay our deficit. Hence Christ's death is substitutionary; he pays the honour to the Father instead of us paying. Penal substitution differs in that it sees Christ's death not as repaying God for lost honour but rather paying the penalty of death that had always been the moral consequence for sin (e.g., Genesis 2:17; Romans 6:23). The key difference here is that for Anselm, satisfaction is an alternative to punishment, "The honor taken away must be repaid, or punishment must follow." By Christ satisfying our debt of honor to God, we avoid punishment. In Calvinist Penal Substitution, it is the punishment which satisfies the demands of justice.