Dynamic wheel–rail contact forces induced by a severe form of wheel tread damage have been measured by a wheel impact load detector during full-scale field tests at different vehicle speeds. Based on laser scanning, the measured three-dimensional damage geometry is employed in simulations of dynamic vehicle–track interaction to calibrate and verify a simulation model. The relation between the magnitude of the impact load and various operational parameters, such as vehicle speed, lateral position of wheel–rail contact, track stiffness and position of impact within a sleeper bay, is investigated. The calibrated model is later employed in simulations featuring other forms of tread damage; their effects on impact load and subsequent fatigue impact on bearings, wheel webs and subsurface initiated rolling contact fatigue of the wheel tread are assessed. The results quantify the effects of wheel tread defects and are valuable in a shift towards condition-based maintenance of running gear, and for general assessment of the severity of different types of railway wheel tread damage.