Early repayment charge (ERC) calculator
An early repayment charge is normally a percentage of the balance you repay before your deal ends. Multiply your balance by the ERC percentage for the year you are in: on £200,000 with a 4% ERC that is £8,000. The percentage usually steps down each year, often from around 5% in year one to 1% in the final year of a five-year fix. This free calculator shows your charge and a typical taper. Use your own figures from your mortgage offer. No email, nothing stored.
Work out your early repayment charge
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Find the percentage for your current year in your mortgage offer or key facts illustration.
Early repayment charge
£8,000
Worked example: 4% of a £200,000 balance is £8,000. If you can wait until the percentage steps down or the deal ends, that charge falls or disappears. Change the figures for your own case.
Simplified illustration. Your real ERC, and whether it is charged on the full balance or only the amount repaid, is set out in your mortgage offer. Not a quote and not advice. Confirm your figures with your lender or a regulated broker.
A typical five-year taper (illustrative)
ERCs commonly step down over the deal, so leaving late costs less than leaving early. Below is an illustrative taper on your balance. Your own offer is what counts.
| Year of deal | Typical ERC | Charge on this balance |
|---|---|---|
| Year 1 | 5% | £10,000 |
| Year 2 | 4% | £8,000 |
| Year 3 | 3% | £6,000 |
| Year 4 | 2% | £4,000 |
| Year 5 | 1% | £2,000 |
Illustrative taper for a typical five-year fix, recalculated on the balance you enter above. Real tapers and durations vary by lender and product.
When paying the ERC can still pay
Leaving early is not automatically a mistake. If a new deal is markedly cheaper, the saving across the remaining years can beat the ERC plus switching fees. The only way to be sure is to compare the full cost of staying against the full cost of leaving with the ERC included. The remortgage calculator and the switch or stay tool do exactly that, and the early repayment charges guide explains how they are structured.
Common questions
How is an early repayment charge calculated?
An ERC is normally a percentage of the amount you repay early. Multiply your outstanding balance (or the portion you are repaying) by the ERC percentage for the year you are in, and that is the charge. On a £200,000 balance with a 4% ERC, that is £8,000. The exact percentages and the years they apply to are set out in your own mortgage offer.
Where do I find my ERC percentage?
It is in your mortgage offer or key facts illustration, usually as a table showing the percentage for each year of the deal. It commonly steps down over the fixed or discounted period. If you cannot find it, your lender can confirm the current figure and the date it drops or ends. Always use your own figures, not a rule of thumb.
Can I avoid the early repayment charge?
Often, yes. You usually pay no ERC once the deal period has ended, within your annual overpayment allowance (frequently around 10% of the balance), and sometimes by porting the mortgage to a new home. Waiting until the deal ends, or timing a switch to when the ERC has stepped down, can save a large sum. Check your specific terms.
Is it ever worth paying the ERC to switch?
Sometimes. If a new deal is far cheaper, the saving over the remaining years can outweigh the ERC plus any fees. The way to know is to compare the total cost of staying against the total cost of leaving with the ERC included. Our switch or stay tool and remortgage calculator do exactly that.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 21 July 2026