liminfoRent vs Buy Calculator
Free web tool: Rent vs Buy Calculator
Monthly Rent
Jeonse (Lump-sum)
Purchase
Common Settings
Monthly Rent
Best24-month total
2,35010K KRW
Monthly avg
9810K KRW
Opp. cost: 7010K KRW
Jeonse
24-month total
2,46010K KRW
Monthly avg
10310K KRW
Opp. cost: 2,10010K KRW
Purchase
24-month total
5,64310K KRW
Monthly avg
23510K KRW
Opp. cost: 70010K KRW
Savings Summary
Rent is the best option. You save 3,293 10K KRW compared to the most expensive option — that's 58% cheaper.
Rent
2,35010K KRW
-58%
Jeonse
2,46010K KRW
-56%
Purchase
5,64310K KRW
Most
Total Cost Comparison (24 months)
Property value changes are not reflected. Consider acquisition tax, brokerage fees, etc. for actual decisions.
About Rent vs Buy Calculator
The Korean Rent vs Buy Calculator compares the total cost of three housing options side by side: monthly rent (wolse with deposit), jeonse (lump-sum deposit lease), and home purchase with a mortgage. It factors in opportunity cost on deposits and down payments, level-payment mortgage amortization, and monthly maintenance fees to determine which option is cheapest over your chosen residence period.
This calculator is designed for the Korean housing market where jeonse is a common alternative to both monthly rent and purchase. Enter your specific numbers for deposit, monthly rent, jeonse deposit, purchase price, down payment, loan rate, and loan term, then adjust the residence period, opportunity cost rate, and maintenance fee to see real-time cost breakdowns.
All calculations run entirely in your browser with no server processing. The tool supports Korean and English, dark mode, and works on desktop, tablet, and mobile devices.
Key Features
- Side-by-side comparison of monthly rent (wolse), jeonse, and purchase with total and monthly average costs
- Opportunity cost calculation on deposits and down payments using a user-defined annual interest rate
- Level-payment mortgage amortization formula for home purchase option with customizable rate and term
- Monthly maintenance fee included across all three options for fair comparison
- Automatic highlighting of the cheapest housing option with a visual "Best" indicator
- Configurable residence period in months for short-term and long-term cost analysis
- Real-time calculation updates as you adjust any input parameter
- All amounts displayed in Korean 10,000 KRW (man-won) units matching local conventions
Frequently Asked Questions
How does the Korean Rent vs Buy Calculator compare the three options?
For monthly rent, it sums total rent payments plus the opportunity cost of the deposit plus maintenance. For jeonse, it calculates only the opportunity cost of the large deposit plus maintenance (no monthly rent). For purchase, it adds the opportunity cost of the down payment, monthly mortgage payments (level-payment amortization), and maintenance. The option with the lowest total cost is highlighted as "Best."
What is opportunity cost and why does it matter?
Opportunity cost represents the returns you could earn by investing your deposit or down payment instead of tying it up in housing. For example, a 300 million KRW jeonse deposit at 3.5% annual rate means you forgo about 10.5 million KRW per year in potential returns. This makes jeonse more expensive than it appears at first glance, and the calculator captures this hidden cost.
What mortgage formula does the purchase option use?
The calculator uses the standard level-payment (equal monthly installment) amortization formula: M = P * r * (1+r)^n / ((1+r)^n - 1), where P is the loan amount (purchase price minus down payment), r is the monthly interest rate, and n is the total number of monthly payments. This is the most common repayment method for Korean housing loans.
Why does the purchase option not include property value appreciation?
As noted in the tool, property value changes (gains or losses) are intentionally excluded because they are speculative and vary greatly by location and market conditions. The calculator focuses on certain, recurring costs. For actual decision-making, you should also consider acquisition tax, brokerage fees, moving costs, and potential price changes.
What is jeonse and how does it differ from monthly rent?
Jeonse is a uniquely Korean lease system where the tenant deposits a large lump sum (often 60-80% of the property value) and pays no monthly rent. The deposit is returned in full when the lease ends, typically after 2 years. The landlord earns returns on the deposit instead of collecting rent. In the calculator, jeonse cost comes entirely from the opportunity cost of that large deposit.
How should I set the opportunity cost rate?
The opportunity cost rate should reflect the realistic annual return you could earn on your money if it were not locked in housing. Common benchmarks include savings account rates (2-3%), time deposit rates (3-4%), or expected investment portfolio returns (5-7%). The default of 3.5% is a moderate assumption roughly aligned with Korean bank deposit rates.
Can I use this calculator for non-Korean housing markets?
While the calculator is designed for the Korean market with jeonse as a core option and amounts in man-won (10K KRW), you can use the monthly rent and purchase comparison for any market by ignoring the jeonse column. For a dedicated US/global rent vs buy calculator with USD amounts and property appreciation, see the separate Rent vs Buy Calculator tool on liminfo.com.
Is the calculation performed on the server?
No, all calculations happen entirely within your web browser using JavaScript. No data is sent to any server, stored in any database, or shared with third parties. Your financial information stays completely private on your device.