Calculate the financial loss from early termination of deposits, savings accounts, or insurance policies. Instantly see the difference between maturity returns and early termination payouts, tax deductions, and total loss.
Choose between Deposit/Savings early termination or Insurance surrender. Input fields and calculation methods differ based on your selection.
For deposits, enter the principal, contracted rate, early termination rate, contract period, elapsed period, and tax type. For insurance, enter the total premium paid, payment period, and estimated surrender value rate (available from your insurer or policy documents).
See detailed comparisons of maturity vs. early termination payouts, including interest loss and tax deductions for deposits, or surrender value and loss rate for insurance.
Use the calculated loss to weigh your options. If the loss is significant, consider alternatives like policy loans, payment suspension, or reduced paid-up insurance before terminating.
Early termination loss is the financial penalty incurred when ending a financial product before its maturity date. For deposits and savings accounts, a much lower early termination rate replaces the contracted interest rate, resulting in significant interest loss. For insurance, administrative and commission costs are deducted upfront, so the surrender value is typically much less than the total premiums paid, sometimes only 50-70% in the early years of the policy. Before terminating, consult your financial institution about the exact surrender value and alternatives such as policy loans, payment suspension, or reduced paid-up options.
When you urgently need cash, compare the loss from early termination against the interest cost of a bank loan. If the termination penalty exceeds the loan interest, taking a loan may be the better option.
When considering switching to a new insurance policy, calculate the current surrender value and loss to understand the real cost of making the switch.
When restructuring your investment portfolio, use the calculator to pre-estimate early termination losses and determine the optimal timing for asset reallocation.
| Category | Deposit/Savings | Insurance |
|---|---|---|
| Cause of Loss | Contracted rate → Early termination rate | Upfront expense deduction |
| Loss Size | Interest loss (principal preserved) | 30-50%+ of total premiums |
| Early Surrender Risk | Low | Very High |
| Alternative | Deposit-secured loan | Policy loan, suspension, reduced paid-up |
The early termination rate is available on your financial institution's website, mobile app, or by calling customer service. It typically varies by elapsed period (e.g., 0% for less than 1 month, 0.2% for less than 3 months, 0.5% for less than 6 months). It is also stated in your account agreement or terms and conditions. For the exact payout amount, always contact your institution directly.
The surrender value rate can be checked through your insurer's website, app, or customer service. It is also shown in your policy document or the 'Surrender Value Example Table' in the product disclosure statement. Note that surrender rates are typically very low in the early years of the policy due to upfront expense deductions.
Tax-preferred deposits apply a reduced tax rate of 9.5% (including 1.4% local tax) instead of the standard 15.4% on interest income, up to a certain limit. Tax-exempt deposits incur no interest income tax at all, but are only available to eligible groups such as the elderly or people with disabilities. These benefits apply at maturity and may be restricted or retroactively cancelled upon early termination.
For time deposits, the lower early termination rate applies to the entire principal. For installment savings, interest calculation varies based on the number of installment payments made. This calculator uses a simplified calculation method; for exact amounts, please consult your financial institution.
No. Insurance companies deduct administrative and commission costs (acquisition costs, contract expenses, maintenance fees, etc.) upfront. This means you receive less than the total premiums paid upon early termination. Within the first 3-5 years, the surrender value may only be 50-70% of total premiums. The surrender rate increases with time, so maintaining the policy until maturity is generally most beneficial.
For deposits, waiting longer before terminating reduces the loss since more time has elapsed under the contracted rate. For insurance, prioritize alternatives like policy loans, payment suspension, or reduced paid-up coverage. If you have multiple products, consider terminating those with the lowest loss rates first, or the products closest to maturity.
Learn about the structure of early termination losses for deposits and insurance, and strategies to minimize financial impact.
Early termination of deposit or savings accounts results in two main types of loss. First, interest loss: instead of the contracted interest rate, a much lower early termination rate is applied. For example, a 12-month time deposit at 3.5% annual interest terminated after 6 months might only earn 0.5% annual interest for those 6 months, losing the majority of expected returns. Second, tax issues: products with tax-preferred or tax-exempt benefits may have those benefits retroactively cancelled, applying the standard 15.4% tax rate instead. As of 2026, the standard interest income tax in Korea is 15.4% (14% income tax + 1.4% local tax), with tax-preferred rates at 9.5% and tax-exempt at 0%. To minimize losses, extend the elapsed period as long as possible before terminating, or use a deposit-secured loan to access funds without ending the account.
Surrendering an insurance policy early can result in greater losses than early deposit termination. A significant portion of premiums is deducted as administrative expenses (agent commissions, contract costs, maintenance fees, risk premiums) in the early years. As a result, surrendering within 1-2 years may yield a surrender value of zero or only 30-50% of total premiums paid. The surrender rate increases over the payment period, potentially reaching over 90% after full payment. Before surrendering, always contact your insurer for the current surrender value and explore alternatives: policy loans (up to 80-90% of surrender value, no credit check), payment suspension (pause premium payments for 1-3 months), or reduced paid-up coverage (reduce coverage and treat policy as fully paid without further premiums).
Exploring alternatives before terminating financial products early can significantly reduce your losses. For deposits, a deposit-secured loan lets you borrow up to approximately 95% of your deposit at a low interest rate without terminating the account, preserving your interest income while accessing the funds you need. For insurance, a policy loan (약관대출) provides immediate funds up to 80-90% of the surrender value without a credit check. Payment suspension allows you to temporarily stop paying premiums while maintaining coverage during short-term financial difficulties. Reduced paid-up coverage lets you maintain the policy without further premium payments by reducing the coverage amount, resulting in less loss than full termination. Before making any decision, consult with a financial advisor or your institution's representative to choose the most beneficial option for your specific situation.