Breakdown of Dat is niet erg, hoor.
erg
very / really
hoor
you know (softening tag at the end of a sentence)
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Questions & Answers about Dat is niet erg, hoor.
Why does erg mean "a problem" here? I thought it meant "bad" or "very".
You are right! By itself, erg usually means "bad" or "terrible", and it can also mean "very" (like in erg leuk - very nice). However, the phrase niet erg is a very common fixed expression in Dutch that means "not a problem" or "not a big deal."
Doesn't hoor mean "hear"? Why is it at the end of the sentence?
It does come from the verb horen (to hear), but here it isn't used as an action. It is a "particle"—a little word Dutch speakers add to soften a sentence or make it sound more reassuring. It works a bit like saying "you know", "don't worry", or "really" in English.
Can I say Het is niet erg instead of Dat is niet erg?
Yes, you can! Both are correct and used all the time. Dat is niet erg literally means "That is not a problem," which strongly points back to whatever was just said. Het is niet erg simply means "It is not a problem."
Why is there a comma before hoor?
Because hoor is an extra little tag added to the end to change the "feeling" of the sentence, it is separated by a comma. You will see this a lot in conversational Dutch when short words like hè or hoor are tacked onto the end of a thought.