liminfoJeonse-Monthly Rent Converter
Free web tool: Jeonse-Monthly Rent Converter
Legal maximum: base rate (3.5%) + 2% = 5.5%
Conversion Difference
250,000,000 KRW
Jeonse − Deposit
Monthly Rent
1,145,833 KRW
Annual: 13,750,000 KRW
Calculation Details
About Jeonse-Monthly Rent Converter
The Jeonse-Monthly Rent Converter is a specialized calculator for Korea's unique dual-rental housing market. It performs two-way conversion between jeonse (전세) — a lump-sum deposit system where the tenant pays a large deposit instead of monthly rent — and monthly rent (월세). Enter a jeonse deposit amount and a new deposit to calculate the equivalent monthly rent, or enter a monthly rent and deposit to find the jeonse-equivalent total deposit.
The tool applies Korea's legal maximum conversion rate, which is set by law as the Bank of Korea base rate plus 2 percentage points. As of 2024, this equals 5.5% (3.5% base rate + 2%). This rate protects tenants by capping how much landlords can charge when converting jeonse to monthly rent. The tool also allows you to enter a custom rate for market-rate simulations or hypothetical scenarios.
The conversion formulas used are: for jeonse-to-monthly, Monthly Rent = (Jeonse Deposit − New Deposit) × Rate ÷ 12; for monthly-to-jeonse, Jeonse Equivalent = Current Deposit + (Monthly Rent × 12 ÷ Rate). All inputs, outputs, and calculation breakdowns are shown directly in the browser with no data sent to any server.
Key Features
- Two-way conversion: jeonse deposit to monthly rent, and monthly rent to jeonse equivalent
- Applies the legal maximum conversion rate (Bank of Korea base rate + 2%)
- One-click reset to the current legal maximum rate (5.5% as of 2024)
- Adjustable conversion rate field for custom market-rate scenarios
- Detailed calculation breakdown showing formula, inputs, and results
- Displays both monthly rent and annual rent total for jeonse-to-monthly conversion
- 100% client-side — no financial data is uploaded or stored
- Bilingual Korean/English interface with dark mode support
Frequently Asked Questions
What is the jeonse system in Korea?
Jeonse (전세) is a uniquely Korean rental system where a tenant pays a large lump-sum deposit — typically 50–80% of the property value — to the landlord instead of monthly rent. The landlord invests this deposit and returns it at the end of the lease. In recent years, many landlords have been converting jeonse contracts to monthly rent arrangements.
What is the legal maximum conversion rate?
The legal maximum rate for converting jeonse to monthly rent is the Bank of Korea base rate plus 2 percentage points. As of 2024, the base rate is 3.5%, making the maximum conversion rate 5.5%. Landlords cannot legally demand a higher conversion rate when switching a jeonse contract to monthly rent.
How is monthly rent calculated from a jeonse deposit?
Monthly Rent = (Jeonse Deposit − New Deposit) × Conversion Rate ÷ 12. For example, with a 300 million KRW jeonse, a 50 million KRW new deposit, and a 5.5% rate: (300M − 50M) × 5.5% ÷ 12 = approximately 1,145,833 KRW/month.
How is the jeonse equivalent calculated from monthly rent?
Jeonse Equivalent = Current Deposit + (Monthly Rent × 12 ÷ Conversion Rate). For example, with 500,000 KRW/month rent, a 30 million KRW deposit, and a 5.5% rate: 30M + (500K × 12 ÷ 5.5%) = approximately 139 million KRW.
Can I use a different conversion rate?
Yes. The rate field is editable. You can enter any rate between 0.1% and 20% to simulate different market conditions or what-if scenarios. The legal maximum button resets it to the current legal cap (5.5%).
Does the legal conversion rate change over time?
Yes. The legal maximum rate is pegged to the Bank of Korea base rate plus 2%. When the Bank of Korea adjusts its policy rate, the legal maximum conversion rate changes accordingly. This tool hardcodes the 2024 base rate of 3.5%. For the most current rate, check the Bank of Korea website.
What currency does this calculator use?
The calculator uses South Korean Won (KRW). All inputs and outputs are in KRW. Enter amounts in raw numbers (e.g., 300000000 for 300 million won) without commas or units.
Is this calculator suitable for landlords as well as tenants?
Yes. Both landlords considering converting jeonse to monthly rent and tenants evaluating such a conversion offer can use this calculator. The legal maximum rate is displayed to help both parties understand the legal boundaries.