Rent Conversion Calculator

Jeonse Deposit

KRW

Deposit (Monthly Rent)

KRW

Conversion Rate (Annual %)

Based on Bank of Korea base rate (default 4.5%)

Rent Conversion Formula

Jeonse → Monthly Rent

Monthly Rent = (Jeonse - Deposit) × (Rate / 100) ÷ 12

Monthly Rent → Jeonse

Jeonse = Deposit + (Monthly Rent × 12 ÷ (Rate / 100))

※ The conversion rate is determined by the Bank of Korea base rate + presidential decree surcharge (2%). As of 2024, it is approximately 4.5%.

What is a Rent Conversion Calculator?

A rent conversion calculator is a tool that helps you determine the appropriate amount when converting a Jeonse (lump-sum deposit) to monthly rent, or vice versa. It applies the conversion rate according to the Korean Housing Lease Protection Act to calculate fair conversion amounts.

It is useful when converting from Jeonse to semi-monthly rent (ban-jeonse), adjusting deposit ratios, or comparing Jeonse and monthly rent conditions for a new home. The legal conversion rate based on the Bank of Korea base rate (default 4.5%) is applied, and you can also modify the rate manually.

Key Features

Two-Way Conversion

Supports both Jeonse→Monthly and Monthly→Jeonse conversions for instant calculations in any scenario.

Legal Conversion Rate

Provides the legal conversion rate (Bank of Korea base rate + 2% surcharge) as the default value.

Real-Time Calculation

Results are displayed instantly as you enter deposit, rent, and conversion rate values.

Formula Guide

Provides detailed explanation of the formulas used in rent conversion to help you understand the calculation principles.

How to Use

Select Conversion Direction — Choose between 'Jeonse→Monthly' or 'Monthly→Jeonse' conversion.
Enter Amounts — Enter the Jeonse deposit, monthly rent deposit, and monthly rent in KRW.
Check Conversion Rate — The default rate (4.5%) is applied. You can modify it if needed.
View Results — Click the calculate button to see the converted monthly rent or Jeonse deposit.

Use Cases

Jeonse to Semi-Monthly Conversion

When a landlord requests conversion from Jeonse to semi-monthly rent, calculate the appropriate monthly rent for fair negotiation.

Comparing Rental Properties

Convert multiple properties with different deposit-to-rent ratios into Jeonse equivalents to compare actual costs.

Lease Renewal

Calculate the appropriate monthly rent increase based on the conversion rate during lease renewal for reasonable negotiation.

Jeonse vs Monthly Rent Decision

Compare Jeonse loan interest with monthly rent to determine which rental method is more advantageous.

Frequently Asked Questions

How is the conversion rate determined?

The conversion rate is determined by the Bank of Korea base rate plus a surcharge rate set by presidential decree (currently 2%), according to the Enforcement Decree of the Housing Lease Protection Act. As of 2024, it is approximately 4.5% and may change with base rate adjustments.

Is there a cap on the conversion rate?

Yes, under the Housing Lease Protection Act, there is an upper limit on the conversion rate. Landlords cannot charge monthly rent exceeding the base rate + surcharge (currently 2%). Tenants can request a refund for any excess charges.

What is ban-jeonse (semi-monthly rent)?

Ban-jeonse is a hybrid between Jeonse and monthly rent, where you pay a certain deposit and monthly rent for the remaining amount. It can be seen as converting part of the Jeonse deposit into monthly rent payments.

Can the calculation differ from the actual contract?

This calculator uses the legal conversion rate. Actual contracts may vary based on landlord-tenant negotiation, market conditions, and local pricing. Please use the results as a reference.

What is Jeonse deposit return insurance?

Jeonse deposit return insurance protects tenants in case the landlord cannot return the deposit. It can be purchased from HUG, SGI Seoul Guarantee, or HF Korea Housing Finance Corporation. It is recommended when converting between rent types to protect your deposit.

Privacy Notice

This rent conversion calculator processes all calculations in your browser. No information such as amounts or conversion rates is sent to any server. Use it with confidence.

Jeonse-to-Monthly Rent Conversion: From the Legal Cap to Deposit Protection

Whether you convert a jeonse (lump-sum deposit lease) into monthly rent, or roll monthly rent back into a deposit, the key question is how much deposit equals how much monthly rent. That ratio is the conversion rate (전월세전환율), and Korea places a legal cap on it to protect tenants. Note up front: this cap applies when a deposit is converted to rent during a contract renewal, not to free market negotiation of a brand-new lease.

How the 2026 legal conversion cap is set

Under Article 7-2 of the Housing Lease Protection Act and its Enforcement Decree, when converting all or part of a deposit into monthly rent, the rate cannot exceed the lower of (1) the Bank of Korea base rate + 2 percentage points or (2) 10% per year. As of June 2026 the base rate is 2.50%, so the legal cap is 2.50% + 2.0%p = 4.5% per year (4.5% < 10%, so 4.5% applies). Because the cap moves with the base rate, always check the current base rate on the Bank of Korea site at contract time.

Base rate (example)	Legal cap (= base rate + 2%p)	Note
1.50%	3.5%	Pandemic-era low-rate phase
2.50%	4.5%	Current, June 2026
3.50%	5.5%	2023–2024 high-rate phase
8.0%+	10%	Hard ceiling (10%) applies

Jeonse → monthly rent: formula and worked example

Multiply the deposit being converted by the conversion rate to get one year of rent, then divide by 12. The formula is monthly rent = (converted deposit × conversion rate) ÷ 12.

Example: Suppose a jeonse with a 100 million won deposit is converted into a 30 million won deposit plus monthly rent. The portion turned into rent is 100M − 30M = 70 million won. Applying the 2026 legal cap of 4.5%: annual amount = 70M × 4.5% = 3.15M won; monthly rent = 3.15M ÷ 12 = 262,500 won/month. So the landlord may lawfully charge at most about 262,500 won per month on top of the 30 million won deposit.

Monthly → jeonse is the reverse: deposit added = (monthly rent × 12) ÷ conversion rate. For 300,000 won/month: (300,000 × 12) ÷ 4.5% = 80 million won added to the deposit.
A lower rate favors the tenant: for the same deposit, a lower conversion rate means lower monthly rent.
Market rate ≠ legal cap: real listings often run 5–6%. The cap is a renewal safeguard and does not bind new contracts.

Deposit vs. rent trade-off: how to decide

To decide whether to convert deposit into rent, compare the conversion rate against the return you could earn on that money elsewhere. If safe-asset/deposit rates are below the conversion rate (4.5%), lowering your deposit and paying rent is a losing trade. If you can invest the lump sum at a higher return, conversion may pay off. Remember that rent is a sunk cost while a deposit is a recoverable asset, and factor in the monthly-rent tax deduction (up to 7.5M won/year if income conditions are met).

Protecting your deposit: avoiding an underwater jeonse

A larger jeonse share cuts your monthly outlay but raises the risk of non-return of the deposit (깡통전세, an underwater lease). If the deposit is too large relative to the property's value, you may not recover it in a foreclosure. Check the following.

Loan-to-deposit ratio: if (deposit + senior claims) ÷ market price exceeds 70–80%, treat it as a warning sign.
Property register (등기부등본): verify mortgages and senior tenants both before signing and before the final payment.
Opposing power & priority: file your move-in report and get a fixed date (확정일자) on the balance-payment day to secure priority.
Deposit-return guarantee insurance: with HUG or SGI Seoul Guarantee coverage, the guarantor pays you if the landlord cannot return the deposit. Confirm eligibility limits and ratio requirements in advance.

Recommended tools: run the example above with the Rent Conversion Calculator.
Compare your investment return against the conversion rate using the Interest Calculator.
Plan deposit financing or loan repayment with the Loan Repayment Calculator.

📅 Last updated: 2026-06-16🧮 Calculation basis: The formulas, rates and tax rules used here are documented with sources in our methodology page.🏷 Operated by: Calc Tani · About · Contact

⚠️ Disclaimer — Results are reference estimates based on your inputs and published standards, and carry no legal or tax authority. Rates and rules change frequently — always verify the actual amount with the relevant authority, your financial institution, or a professional. Your inputs are never sent to or stored on a server; all calculation happens in your browser.