Early termination fee
A fee charged for ending a contract before its agreed term — sometimes negotiable or refundable by a competitor.
Updated 5/14/2026
Definition
A fee charged when a customer cancels a service contract (mobile, internet, gym, business SaaS) before the end of the agreed minimum term. The amount is usually tied to remaining months or a fixed early-cancellation charge.
Why it matters
ETFs are the main reason people stay on bad plans. Knowing the exact ETF and whether a competitor will reimburse it changes the math entirely.
Example
A mobile carrier may charge a $200 early termination fee at month 18 of a 24-month contract — and a competitor may credit that exact amount to win the customer.
In BetterBill
Where BetterBill detects an ETF risk, the analysis flags it explicitly and recommends checking competitor switch-credit programs before cancelling.