Deposit to Monthly Rent Calculator
Enter the amount to convert and the rate. The monthly rent or deposit appears instantly.
Housing Lease Protection Act Art. 7-2 and Enforcement Decree Art. 9
| Legal conversion-rate cap | – |
|---|---|
| Maximum rent at the cap | – |
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.
How is the cap set?
Article 7-2 of the Housing Lease Protection Act sets the cap as the lower of two rates. The actual figures (10% a year and 2 percentage points) are in Article 9 of the Enforcement Decree.
| Rule | Rate | Basis |
|---|---|---|
| ① | 10% a year | Decree Art. 9(1) |
| ② | Base rate + 2 percentage points | Decree Art. 9(2) |
| Cap | The lower of ① and ② | Act Art. 7-2 |
The formula
Monthly rent = converted deposit × rate ÷ 12. Deposit = monthly rent × 12 ÷ rate. For example, converting ₩100 million at 5% gives ₩100,000,000 × 5% ÷ 12 ≈ ₩416,667 a month.
Deposit to Monthly Rent Calculator: common questions
Q. What is the legal cap on converting a deposit into monthly rent?
A. Under Article 7-2 of the Housing Lease Protection Act (주택임대차보호법), the rate may not exceed the lower of 10% a year or the Bank of Korea base rate plus 2 percentage points. With the base rate at 3.00% (decided October 22, 2026), the cap is 5.00% a year.
Q. When does the cap apply?
A. It applies when all or part of the deposit is converted into monthly rent. The monthly rent may not exceed the converted deposit multiplied by the capped rate, divided by 12.
Q. Is there a cap when converting monthly rent into a bigger deposit?
A. No. Article 7-2 covers converting a deposit into rent. Going the other way is not covered by that article, so the rate is whatever the landlord and tenant agree. Treat that result as a reference only.
Q. What if the landlord asks for more than the cap?
A. For a conversion during the lease, the part of the rent above the cap has no effect under Article 10 of the Act, which voids terms that are against the tenant and contrary to the Act. You can apply to the Housing Lease Dispute Mediation Committee (주택임대차분쟁조정위원회) if you cannot agree.
Legal basis (Korean):주택임대차보호법 · 주택임대차보호법 시행령
Korean version: 한국어 계산기 · Found an error? Tell us