Jeonse vs Wolse Calculator
Enter both offers and an interest rate. You see what each one really costs per month.
Interest cost of the deposit + monthly rent, compared per month
| Jeonse cost per month | – |
|---|---|
| Wolse cost per month | – |
| Difference per year | – |
| Break-even rate | – |
Jeonse cost = deposit × rate ÷ 12. Wolse cost = rent + deposit × rate ÷ 12.
The result is an estimate from the figures you enter and the rules in Korean law. Your actual contract, the court or the agency decides the real amount. Nothing you type leaves your browser.
A worked example
A hypothetical ₩300 million jeonse against a ₩50 million deposit with ₩1 million monthly rent. The break-even rate is ₩1,000,000 × 12 ÷ ₩250,000,000 = 4.8%.
| Rate | Jeonse / month | Wolse / month | Cheaper |
|---|---|---|---|
| 3% | ₩750,000 | ₩1,125,000 | Jeonse |
| 4.8% | ₩1,200,000 | ₩1,200,000 | Same |
| 6% | ₩1,500,000 | ₩1,250,000 | Wolse |
Jeonse vs Wolse Calculator: common questions
Q. Is jeonse or wolse cheaper?
A. Turn the cost of the money tied up in the deposit (loan interest, or the deposit interest you give up) into a monthly figure and add it to any monthly rent. Whichever total is lower costs less each month. The higher interest rates are, the more a big jeonse deposit costs, so wolse becomes relatively cheaper.
Q. What is the break-even rate?
A. Monthly rent × 12 ÷ (jeonse deposit − wolse deposit). If your loan or savings rate is below this figure, jeonse costs less per month; above it, wolse costs less.
Q. Which interest rate should I enter?
A. If you borrow the deposit, enter the jeonse loan rate. If you pay it from savings, enter the after-tax rate those savings would earn. If it is part loan, part savings, enter a rate weighted by the two amounts.
Q. What does this leave out?
A. Agent fees, moving costs, deposit insurance premiums, maintenance fees and the risk of not getting the deposit back. With jeonse the deposit is large, so the return risk deserves as much attention as the monthly cost.
Legal basis (Korean):주택임대차보호법
Korean version: 한국어 계산기 · Found an error? Tell us