Finance

Exit Fees

Calculate total redemption cost including exit fees and early repayment charges.

Beginner

Introduction

Who this is for: Borrowers planning to redeem or refinance a facility.

Why it matters: Exit costs are easy to overlook and can be charged on the gross facility rather than the outstanding balance — a meaningful difference on a partially repaid loan. On development finance, an exit fee charged on GDV rather than loan is larger again.

Typical scenario: A developer redeeming a facility early and comparing the cost of exiting now against waiting for the ERC to step down.

Common mistakes:
  • Assuming the exit fee is charged on the balance when it is charged on the gross facility.
  • Missing that ERCs often taper by year — waiting a few months can save thousands.
  • Forgetting redemption administration and legal fees.

Inputs

Facility

£
£
£

Exit Charges

%
%
%
£
£

Analysis

Redeeming £640,000 costs £22,300 in exit charges — £8,000 exit fee (on gross facility), £12,800 ERC and £1,500 legal. Total redemption is £662,300, or 3.48% of the balance in charges.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

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Sensitivity Analysis

Sensitivity

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£640,000
£0£1,280,000

Export

Live Results

Total Exit Cost

£22,300

Total Redemption Amount

£662,300

Exit Fee

£8,000

Early Repayment Charge

£12,800

The exit fee is charged on the £800,000 gross facility, not the £640,000 outstanding — costing £1,600 more than if charged on the balance.
Waiting a year for the ERC to taper costs £58,400 more, because interest outweighs the ERC saving. Redeeming now is cheaper.
Cost if You Wait a Year£80,700
Saving from Waiting£-58,400
Exit Cost as % of Balance3.48%