Overview

The Monthly Rent vs Jeonse Comparison Calculator analyzes which rental method is more economical between monthly rent (wolse) and jeonse (lump-sum deposit). It comprehensively considers the opportunity cost of the jeonse deposit, monthly rent burden, jeonse loan interest, and tax benefits to compare actual costs.

Formula

Annual wolse cost = (Monthly rent × 12) + (Deposit × Opportunity cost rate)
Annual jeonse cost = Jeonse deposit × Opportunity cost rate + Jeonse loan interest

Jeonse to wolse conversion = Jeonse deposit × Conversion rate ÷ 12
Conversion rate ≈ Base rate + Presidential decree rate (typically 2.5~4.0%)

Example: Jeonse 300M vs Deposit 30M + 800K/month
Jeonse opportunity cost (3.5%) = 300M × 3.5% = 10.5M KRW/year
Wolse cost = (800K × 12) + (30M × 3.5%) = 9.6M + 1.05M = 10.65M KRW/year

How to Use

1. 1Enter the jeonse deposit amount.
2. 2Enter the monthly rent deposit and monthly rent amount.
3. 3Enter the opportunity cost rate (investment return or savings rate).
4. 4If using a jeonse loan, enter the loan amount and interest rate.
5. 5Click calculate to compare the actual annual costs of monthly rent vs. jeonse.

Tips

• ✔For large jeonse deposits, always consider the opportunity cost of not investing that money elsewhere.
• ✔If jeonse loan interest is lower than monthly rent, jeonse may be advantageous, but factor in deposit return risk.
• ✔Monthly rent tax deductions (up to 7.5M KRW limit, 15-17% credit rate) can make renting more favorable.
• ✔If the jeonse-to-sale price ratio exceeds 70%, beware of under-collateralized jeonse risk.
• ✔For short stays, moving costs become relatively significant, so consider length of residency.

FAQ