Early Repayment Charge Calculator

Calculate early repayment charges and analyze whether paying off your mortgage early saves money. Compare ERCs with interest savings and investment returns.

ERC Calculation
Savings Analysis
Cost vs Benefit

Mortgage & ERC Details

Enter your current mortgage information and ERC terms

Current Mortgage

£
Current outstanding mortgage balance
%
Your current mortgage interest rate
Years remaining on your current mortgage
£
Current monthly payment (automatically calculated)

Early Repayment Charge

How is your early repayment charge calculated?
When does the ERC period end? (leave blank if unknown)

Repayment Options

£
Amount you want to repay early
Are you making a partial payment or paying off completely?
%
Annual return you could earn by investing instead

Understanding ERCs

  • Purpose: Compensate lenders for lost future interest
  • Fixed Rate Deals: Usually have higher ERCs
  • Calculation Methods: Percentage, months of interest, or fixed amounts
  • Time Limits: Usually apply for 2-5 years
  • Exceptions: Death, unemployment may waive charges
  • Partial Payments: May be allowed without ERC up to certain limits

When to Pay ERCs

Consider Paying ERC If:

  • Large inheritance or windfall received
  • Interest savings exceed ERC cost
  • Want to be mortgage-free for peace of mind
  • Expect interest rates to rise significantly

Avoid ERC If:

  • Can earn higher returns investing elsewhere
  • ERC is very high relative to savings
  • Close to end of ERC period
  • Need funds for other priorities