Rent Conversion Calculator — Deposit to Monthly Rent (Korea 2026)
Convert Korean apartment deposit to monthly rent (and vice versa) using the legal conversion rate. Compare legal (6%) vs market (8-10%) rates and calculate annual housing costs.
This calculator is for reference only and may differ from actual amounts due to law changes or individual circumstances. Please consult a licensed professional (tax accountant, labor attorney, etc.) for accurate calculations.
Monthly Rent by Conversion Rate
* Legal conversion rate cap: 6% per annum (Korean Housing Act)
•A lower conversion rate favors the tenant.
•Compare the rate with the current benchmark interest rate.
•Tenants can refuse rates above the legal cap (6%).
Frequently Asked Questions
Q. What is the rent conversion rate in Korea?
The rent conversion rate (전월세 전환율) is the annual interest rate used to convert between deposit and monthly rent. Under the Housing Lease Protection Act, it is capped at 6% per year.
Q. How is the legal 6% cap determined?
It is the lower of 6% or (Bank of Korea base rate + 2%). As base rates change, the cap may fluctuate but cannot exceed 6%.
Q. How much monthly rent equals a ₩100M deposit at 6%?
₩100M × 6% ÷ 12 = ₩500,000/month. At 9%, it would be ₩750,000/month.
Q. When is converting to monthly rent beneficial?
When the conversion rate exceeds the deposit investment return (e.g., savings rate). If savings rates are higher than conversion rates, keeping the deposit invested is better.
Q. What if the landlord demands a rate above 6%?
Tenants can legally refuse any conversion rate above the legal cap. Courts will not enforce above-cap rates.
Q. Does the conversion rate apply to commercial properties?
The 6% cap specifically applies to residential leases under the Housing Lease Protection Act. Commercial properties have separate regulations.
How to Use
Choose deposit→rent or rent→deposit conversion.
Input the deposit or monthly rent in 10,000 KRW units.
Use the legal rate button (6%) or enter a custom rate.
See the converted amount, annual cost, and rate comparison chart.
Expert Knowledge: Rent Conversion Calculator — Deposit to Monthly Rent (Korea 2026)
The Korean rent conversion rate was introduced in the 2011 Housing Lease Protection Act amendment, with the 6% cap strengthened in the 2021 "three tenant laws" reform. Korea's rental market is unique globally for the "jeonse" (전세) system where tenants pay a large lump-sum deposit (often 50-80% of property value) instead of monthly rent.
For tenants: conversion is unfavorable when savings rates exceed the conversion rate. If a 6% conversion rate applies but deposits earn 4% in banks, tenants lose 2%/year by converting to monthly rent. Conversely, in low-rate environments (1-2%), monthly rent may be comparable.
For landlords: high conversion rates extract more from tenants. However, above the 6% legal cap, tenants can refuse payment. The Housing Lease Dispute Mediation Committee (at city/district level) handles disputes without requiring court proceedings.
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