South Korea Jeonse Calculator: Monthly Saving for the Deposit
Work out how much you need to save each month to reach a Korean jeonse deposit by your target date — the large up-front lump sum tenants pay under Korea's distinctive jeonse rental system instead of monthly rent.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly contribution | Total contributed | Growth toward goal |
|---|---|---|---|
| ₩200M in 5yr · 3% | $3,093,738.13 | $185,624,287.97 | $14,375,712.03 |
| ₩300M in 7yr · 3% | $3,213,990.02 | $269,975,161.65 | $30,024,838.35 |
| ₩150M in 4yr · 2.5% | $2,974,605.10 | $142,781,045.01 | $7,218,954.99 |
| ₩500M in 10yr · 4% | $3,395,590.24 | $407,470,828.99 | $92,529,171.01 |
How This Calculator Works
Enter the jeonse deposit you need, the return on your savings, and how many years you have. The calculator finds the monthly saving required to reach the deposit, accounting for compounding. Jeonse (전세) lets a tenant pay a large refundable deposit — often 50–80% of the home's value — instead of monthly rent; the landlord keeps and invests the deposit, returning it in full at the end of the lease.
The Formula
Required Monthly Saving (Sinking Fund)
FV = goal amount, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
To reach a ₩200,000,000 jeonse deposit in 5 years at a 3% savings return, you'd need to save about ₩3,093,738 a month. Jeonse is a uniquely Korean housing arrangement: rather than paying monthly rent, the tenant hands the landlord a very large lump-sum deposit (보증금) for the lease term (typically two years), pays little or no monthly rent, and gets the entire deposit back at the end. Because the deposits are so large, most tenants combine their own savings with a jeonse loan from a bank — so this is the savings-only picture.
Key Insight
Jeonse is one of the most distinctive features of the Korean housing market, and understanding the cash requirement is essential for anyone renting there. The mechanics: instead of monthly rent, the tenant deposits a huge sum — historically around 50–80% of the property's market value — with the landlord, who holds it for the lease (usually two years, renewable) and returns it in full at the end; the landlord's 'rent' is the investment return they earn on that deposit. For tenants, jeonse can be cheaper than monthly rent (wolse) over time because little or no monthly payment is due, and the deposit comes back — but it requires assembling an enormous lump sum, which is why jeonse loans (전세자금대출) from banks are ubiquitous, with the tenant paying loan interest instead of rent. This calculator shows the pure savings path: how much to set aside monthly to reach the deposit yourself by a target date; in reality most people save a portion and borrow the rest, so treat this as the self-funded benchmark. Key risks the calculator doesn't model but every jeonse tenant should weigh: deposit safety. If a landlord can't repay (so-called 'jeonse fraud' and the risk in falling markets where the deposit exceeds what the home can be sold for), the tenant's life savings are at risk — so checking the property's registry, the landlord's debts, securing a confirmed date (확정일자) and priority right, and using deposit-guarantee insurance (전세보증금 반환보증) are crucial protections. As interest rates and house prices shift, the balance between jeonse and monthly rent moves too. This calculator gives the monthly saving to reach the deposit at a steady return; for a full plan, factor in a jeonse loan, the lease term, and the deposit-protection steps.
Frequently Asked Questions
How is the monthly saving for jeonse calculated?
It's the amount you'd need to set aside each month, with savings compounding at your return, to reach the deposit by your target date. To reach ₩200,000,000 in 5 years at 3%, that's about ₩3,093,738 a month. Most tenants save part and borrow the rest with a jeonse loan.
What is jeonse?
A uniquely Korean rental system where the tenant pays a large refundable lump-sum deposit (보증금) — often 50–80% of the home's value — instead of monthly rent, and gets it all back at the end of the lease (usually two years). The landlord profits from investing the deposit during the term.
Is jeonse cheaper than monthly rent?
It can be, over time, because there's little or no monthly rent and the deposit is returned — your main cost is the opportunity cost of the lump sum (or the interest on a jeonse loan). But it requires a huge amount of capital up front, which is why bank jeonse loans are so common among tenants.
Do people really save the whole deposit?
Usually not entirely — the deposits are so large that most tenants combine their own savings with a jeonse loan (전세자금대출), paying loan interest instead of rent. This calculator shows the self-funded savings path as a benchmark; in practice you'd save a portion and finance the remainder.
What are the risks of jeonse?
The big one is getting the deposit back. If the landlord can't repay — due to over-borrowing or a market fall where the deposit exceeds the home's value — your savings are at risk. Protect yourself by checking the property registry and landlord debts, securing a confirmed date (확정일자), and using deposit-return guarantee insurance.
Related Calculators
Methodology & Review
The monthly saving is the deposit needed each month to reach the jeonse deposit by the target date, with savings earning a steady return, compounded monthly. It assumes a constant return and end-of-month deposits, and does not model a jeonse loan (which most tenants use), interest-rate changes, or deposit-protection considerations.
Written by Ugo Candido · Last updated May 22, 2026.