Broadband Savings Calculator
Ofcom and the Competition and Markets Authority have both formally investigated what is commonly called the “loyalty penalty” — the pattern of broadband providers charging existing customers noticeably more than the deals offered to attract new ones. This calculator estimates how much of that penalty you might be paying based on your current provider and monthly cost, and what switching to a competitively priced deal at your current speed could save.
Broadband Savings Calculator
See exactly how much you could save by switching broadband provider. Based on real UK market prices (April 2025).
The Loyalty Penalty
Providers vary considerably in how much more their existing customers typically pay compared with the market rate for an equivalent new-customer deal — some providers show a loyalty premium in the range of 20-30%, while others keep the gap closer to 5-10%. This is not a one-off pricing mistake; it reflects a business model where competitive introductory pricing wins new customers, while existing customers who do not actively renegotiate or switch tend to drift onto higher standard pricing over time.
This calculator uses provider-specific loyalty premium figures rather than a single flat estimate, since the size of the gap genuinely varies by provider — comparing your actual provider against the average market rate for your speed tier gives a more accurate picture than assuming everyone overpays by the same amount.
Why Staying Put Gets More Expensive Every Year
Most broadband deals are priced as an introductory offer for a fixed contract term, after which the price rises to a higher standard rate — and if you do nothing when that happens, you simply keep paying the higher rate indefinitely rather than it correcting itself. Because new customer deals are refreshed constantly to stay competitive, the gap between what a loyal, un-renegotiated customer pays and what a new customer would pay for the same service tends to widen every year a switch or renegotiation does not happen, rather than staying fixed.
This is part of why the same household can end up paying noticeably more than a neighbour on an almost identical connection — not because the service itself is different, but because one household switched or renegotiated recently and the other has simply stayed on the same account for several years without doing either.
What Your Bundle Might Already Be Covering
If your current bill includes line rental or a bundled TV and phone package, comparing it directly against a broadband-only price would overstate how much you are overpaying, since part of that bill is paying for something the cheaper deal does not include. This calculator adjusts for a typical line rental value and bundle value if you flag that your current package includes them, so the comparison reflects broadband cost against broadband cost rather than a bundle against a standalone service.
This distinction matters more than it might first appear — a bill that looks high in isolation can be entirely reasonable once the value of an included TV package or landline is accounted for, while a bill that looks average for broadband-only pricing can actually be expensive once it becomes clear no bundle is included at all.
Seeing the Gap in Practice
Someone paying £42 a month for a 150Mbps connection with a provider showing a 22% loyalty premium is paying noticeably more than the roughly £32 market average for that speed, and considerably more than the cheapest available deal at around £25. Over a year, moving from the current bill to the cheapest realistic option at the same speed can represent a saving well into three figures — over two years, comfortably enough to be worth the short amount of time a switch takes.
A household on a lower-premium provider, paying £30 a month for the same 150Mbps speed, has much less room to save — illustrating why the identical exercise can be highly worthwhile for one household and only marginally useful for another, depending entirely on which provider they are already with.
Timing the Switch
Whether you can switch immediately without penalty depends entirely on where you are in your current contract. Being out of contract already means there is no reason to delay — any switch can start saving money straight away. Being close to the end of a contract is worth preparing for in advance, comparing deals so you are ready to move as soon as the current term ends. Still being well within a fixed contract does not necessarily mean waiting is the only option, though — our Broadband Exit Fee Calculator works out whether paying to leave early and switch now would still leave you better off overall once the saving is weighed against the fee.
Once you know how much you could realistically save, our Broadband Finder can help identify specific deals available at your address rather than relying on the general market averages used in this estimate.
Frequently Asked Questions
Is switching provider actually disruptive?
Generally not — most switches, particularly between providers using the same underlying network (such as different providers all using Openreach’s network), are coordinated between old and new providers with minimal or no downtime, and typically complete within around two weeks of ordering.
Can I just call my current provider instead of switching?
Yes, and it is often worth trying first — many providers will offer a retention deal closer to their new-customer pricing if you call and mention you are considering leaving, without you needing to actually switch provider.
Does my router change if I switch provider?
Usually yes — most providers supply their own router as part of a new contract, and while some allow you to keep using your existing hardware, performance and feature support can vary, so it is worth checking compatibility before assuming you can keep your current setup.
Why do different providers show such different loyalty premiums?
This generally reflects each provider’s specific commercial strategy — some rely more heavily on aggressive new-customer pricing to win market share, which widens the gap for existing customers, while others keep pricing more consistent across their customer base.
Should I switch even if the saving looks small?
A modest monthly saving still adds up over a full contract term — even a relatively small saving sustained over 18 or 24 months can be worth the short amount of admin time a switch takes, particularly if you are already out of contract with no exit fee to weigh against it.
How often should I check whether I am overpaying?
Checking once a year, ideally a few weeks before your contract’s minimum term ends, is a reasonable habit — it catches both the point where an introductory price is about to expire and any newer, cheaper deals that have entered the market since you last checked.
Important Information
This calculator provides an estimate based on typical market rates and general loyalty premium figures for general information purposes only, and does not constitute financial advice. Actual pricing varies by provider, deal and individual circumstances, and may have changed since these figures were last updated. Confirm exact pricing directly with providers before switching. See our Disclaimer for further information.