To get a full understanding of the impacts of global change on the catchment-scale sediment balance, models are needed that combine hillslope soil erosion processes with channel morphodynamics. Here we present a modification to the SPHY-MMF model that includes a novel channel morphodynamics module, which determines erosion and deposition in rills and channels. We applied the model to a Mediterranean study area in southeast Spain, in which we show that channel erosion contributes substantially (35%–40%) to the total sediment yield, highlighting the importance of accounting for channel erosion in catchment-scale sediment budget estimations. The climate change scenarios show that the different erosional processes (i.e. sheet, rill, channel) are projected to decrease or increase, depending on the projected change in annual and extreme precipitation. From this we conclude that interactions between different erosional and depositional processes should be considered when studying the impact of global change on the catchment-scale sediment balance.