Hi Brendan, I finally got the breakage calculation from the bank! The following is how they explain it and break it down. The funding fee is calculated using the average balance of the loan over the period, the cost of the funds when the rate was fixed, the investment rate at date of breaking fixed rate and the number of days that were left of the fixed rate. Average balance = €218,423.07 Original cost of funds at the date of fixing = 1.19% EURIBID (investment rate) at date of breaking fixed term = -0.328% Number of days remaining of fixed rate = 217 The difference in the original costs of funds (1.19%) and investment rate (-0.328%) is 1.518%. The funding fee is calculated by; €218,423.07 x 1.518 / 36500 x 217 = €1.971.23 I presume the highlighted part is the important part with regards to a low breakage fee?? Thanks again for your help Brendan.