Learning • 5 min read

Early Termination Fees Explained

What early termination fees are, how they are calculated, and what your realistic options are if you're still in contract.

How early termination fees are usually calculated

Early termination fees (ETFs) are typically calculated as the remaining months of the contract multiplied by a stated monthly minimum, or a fixed amount per month of service remaining.

Because most providers run a separate terminal contract, two ETFs can apply at once. The total exit cost is usually the sum of both.

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Your options if you're still in contract

Run out the term

Wait until the contract ends, lodge formal notice and switch then. Lowest risk and cost.

Renegotiate with the current provider

Use a review as evidence to negotiate a fairer rate without changing supplier.

Switch and absorb the exit fee

Only sensible if the new pricing pays back the exit cost within a reasonable period.

Switch with exit-fee support

Some providers may contribute towards exit costs in specific cases, subject to approval. Never guaranteed.

Key takeaways

  • ETFs are real costs and need to be quantified before any decision.
  • Sometimes the most sensible action is to renegotiate, not switch.
  • Exit-fee contributions from alternative providers are possible but never guaranteed.

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