Loan Prepayment Fee Calculator

Overview

The Loan Prepayment Fee Calculator computes the fee Korean banks charge when you repay a loan before maturity, using the standard remaining-period sliding method. Enter the repayment amount, fee rate, loan start date, and repayment date to see the fee prorated by the days remaining in the fee period (typically 3 years) and whether you qualify for exemption. It is especially useful when comparing refinancing savings against the prepayment cost.

Formula

Prepayment fee = repayment amount × fee rate (%) × (remaining days in fee period ÷ total days in fee period)

- Fee period: typically 3 years from the loan start date; under Korean financial law the fee can in principle only be charged within 3 years
- Remaining days = fee period end date − repayment date

Example: repaying KRW 100M at a 1.2% rate one year in (731 remaining / 1,096 total days) → 100M × 1.2% × 731/1,096 ≈ KRW 800,365

How to Use

1. 1Enter the amount you plan to repay — the full balance for refinancing, or a partial amount.
2. 2Pick a rate preset (mortgage variable 1.2%, fixed 1.4%, credit loan 0.6–0.8%) or enter the exact rate from your loan agreement.
3. 3Enter the loan start date and planned repayment date; remaining days are computed automatically.
4. 4Check the fee and exemption status, then weigh it against interest savings from refinancing.

Examples

Background

Under Korean financial consumer protection rules, lenders may charge prepayment fees only within 3 years of origination, and banks standardly prorate the fee by the remaining period (sliding method). Since a 2025 regulatory overhaul, fees must be based on actual costs (funding losses and administrative expenses), so rates now vary by bank and product and trend below the older flat 1.2–1.5%. Always verify the exact rate and waiver conditions in your loan agreement.

Tips

• ✔Refinancing payoff = interest savings on the new rate − prepayment fee − new loan costs (stamp duty etc.). Compare before switching.
• ✔Many banks waive the fee for repayments within 10% of the principal per year — use that allowance for penalty-free partial paydowns.
• ✔If the 3-year mark is close, waiting a few days can eliminate the fee entirely.
• ✔Korea's online loan-switching platforms show bank-by-bank comparisons that already net out the prepayment fee.

FAQ