Jeonse ↔ Monthly Rent Calculator

The conversion rate is the annual interest rate used to convert a jeonse deposit into monthly rent. In 2026, the legal maximum conversion rate is the Bank of Korea base rate (3.0%) + 2%p = 5.0%.

If the conversion rate is higher than the current savings deposit rate, jeonse is more advantageous for tenants. If it is lower, monthly rent may be cheaper. Compare with the return you could earn by investing the deposit.

Subtract the semi-jeonse deposit from the full jeonse deposit, then apply the conversion rate. Example: (300M jeonse – 100M deposit) × 4% ÷ 12 = ₩666,667/month.

Yes. Under the Housing Lease Protection Act, the cap is the Bank of Korea base rate + 2%p. With a 3.0% base rate in 2026, the maximum is 5.0%. Any rate above this is legally void.

Yes. If your total annual salary is ₩70 million or less, you are a householder without a home, and you rent a unit of 85㎡ or smaller, you can claim a 15–17% tax credit on annual rent paid (up to ₩7.5 million).

If the opportunity cost of your deposit (investment return) exceeds the conversion rate, monthly rent may be better. If not, jeonse is typically cheaper. Also compare with the interest rate on jeonse loans.

It is insurance that protects tenants if the landlord cannot return the jeonse deposit. You can purchase it through HUG (Korea Housing Finance Corporation) or SGI Seoul Guarantee. The insurer pays out if the landlord defaults.