Which is more economical - Jeonse or Wolse? Jeonse is a unique South Korean rental system where tenants pay a large lump-sum deposit instead of monthly rent. Wolse is the traditional monthly rent system. Enter deposit amounts, monthly rent, and expected investment returns to compare the opportunity cost of a Jeonse deposit versus Wolse payments over your residence period. Analyze costs from 1 to 5 years to find the optimal housing choice for your financial situation.
Enter the Jeonse deposit amount for the property you are considering. Jeonse is a unique South Korean rental system where you pay a large lump-sum deposit and live rent-free, with the full deposit returned at the end of the lease. However, you forgo the potential investment returns (opportunity cost) on that deposit during the lease period. Entering the actual deposit amount for your target property will yield more accurate comparisons.
Enter the security deposit and monthly rent for the Wolse property you want to compare. Wolse allows you to move in with a smaller deposit than Jeonse, but requires monthly rent payments. Generally, a smaller deposit means higher monthly rent, and vice versa. If you want to compare multiple Wolse properties, calculate each one separately.
Enter the expected annual return rate if the Jeonse deposit were invested instead. This is the key factor in calculating the opportunity cost of Jeonse. Conservative estimates use bank deposit rates (3-4% annually), while aggressive estimates may use stock or fund returns (5-8% annually). It is important to set a realistic rate based on your investment style and actual achievable returns.
Select your expected residence period. You can choose from 1, 2, 3, or 5 years. Longer periods accumulate greater cost differences, making comparisons clearer. After clicking Calculate, the monthly equivalent cost, annual total cost, and total cost over the residence period will be displayed for both Jeonse and Wolse.
A newlywed couple looking for a home in Seoul Gangnam is comparing a Jeonse of 500 million KRW against a Wolse with 100 million KRW deposit and 1.5 million KRW monthly rent. With a bank deposit rate of 4% and a planned 3-year stay, the Jeonse monthly equivalent cost is approximately 1.33 million KRW (400 million KRW difference x 4% / 12 months), while Wolse is 1.5 million KRW. Jeonse saves about 170,000 KRW per month, or 2.04 million KRW annually. Over 3 years, this totals 6.12 million KRW in savings, making Jeonse the more economical choice.
Office worker B is looking for a studio near the workplace. Comparing a Jeonse of 150 million KRW against a Wolse with 30 million KRW deposit and 600,000 KRW monthly rent. As an active investor expecting 6% annual returns, considering a 2-year lease. The Jeonse opportunity cost is 600,000 KRW/month (120 million KRW x 6% / 12), matching the Wolse exactly. Since the difference is minimal, the decision should consider liquidity needs and potential relocation plans.
The C family with elementary school children plans to stay 5+ years in a good school district. Comparing a Jeonse of 600 million KRW against a Wolse with 200 million KRW deposit and 1.8 million KRW monthly rent. Expecting a stable 4.5% annual return. The Jeonse monthly equivalent cost is 1.5 million KRW (400 million KRW x 4.5% / 12), while Wolse is 1.8 million KRW. Jeonse is 300,000 KRW cheaper monthly. Over 5 years, total savings of 18 million KRW make Jeonse the smart choice.
There is no universal answer; it depends on your financial situation and investment capability. Generally, Jeonse is favorable if you have a large sum available, expect low investment returns, and plan a long-term stay. Conversely, Wolse may be better if you lack capital, can achieve high investment returns, need liquidity, or plan a short-term stay. Use this calculator to compare specific amounts for a clearer decision.
Jeonse deposit opportunity cost refers to the potential returns you could have earned if the deposit money were invested elsewhere. For example, if you could invest a 300 million KRW Jeonse deposit at 4% annual return, you would be forgoing 12 million KRW per year (1 million KRW per month). Comparing this opportunity cost with Wolse payments helps determine which option is more economical. Higher expected returns increase Jeonse's opportunity cost, potentially making Wolse relatively more favorable.
Set the investment return rate to a realistic figure you can actually achieve. Conservative investors may apply bank fixed deposit rates of 3-4% annually, while active investors can consider stock or fund expected returns of 5-8%. Refer to your past investment experience or current portfolio returns. If uncertain, using the current market interest rate is a safe approach.
When taking a Jeonse loan, loan interest becomes an additional cost. For example, if borrowing 200 million KRW of a 500 million KRW Jeonse deposit at 4% annual rate, the monthly interest is approximately 660,000 KRW. In this case, the actual monthly cost of Jeonse is the opportunity cost of the remaining deposit plus the loan interest. High loan interest can significantly reduce Jeonse's economic advantage, so carefully review loan terms and compare with Wolse before deciding.
Under South Korean tax law, if you are a non-homeowner head of household with total salary under 70 million KRW (comprehensive income under 60 million KRW), you can receive a 10-12% tax deduction on monthly rent payments. The deduction applies to up to 7.5 million KRW annually, effectively reducing your actual Wolse burden. Submit your rental contract and payment receipts during year-end tax settlement. Factoring this in may make Wolse more favorable compared to Jeonse.
This calculator is for reference only. Actual decisions should comprehensively consider personal financial situations, investment capability, and housing plans. Additional cost factors such as Jeonse loan interest, Wolse tax deductions, and maintenance fee differences should be considered separately. Investment returns are not guaranteed and may fluctuate with market conditions. Based on the South Korean housing rental system.
전세는 목돈을 한 번에 맡기고 월 임대료 없이 거주하는 한국 고유의 임대 방식입니다. 계약 종료 시 보증금 전액을 돌려받을 수 있어 장기 거주에 유리하며, 보증금에 대한 이자 수익(기회비용)만 부담하면 됩니다. 반면 월세는 적은 보증금으로 시작할 수 있어 초기 자금 부담이 낮고, 자금의 유동성을 유지할 수 있습니다. 단, 매달 월세를 납부해야 하므로 장기적으로 총 주거비가 높아질 수 있습니다. 무주택 세대주는 연말정산 시 월세의 10~12%를 세액공제 받을 수 있어 실질 부담을 줄일 수 있습니다.
전월세 전환율이란 전세 보증금을 월세로 전환할 때 적용하는 비율로, 전세와 월세의 경제적 균형점을 나타냅니다. 법정 전월세 전환율은 기준금리에 일정 비율을 더한 수준으로 설정되며, 실제 시장에서는 지역과 물건 특성에 따라 다르게 적용됩니다. 전환율 계산법은 '월세 × 12 ÷ (전세 보증금 - 월세 보증금) × 100'입니다. 예를 들어 전세 5억원 물건이 보증금 1억에 월세 130만원이라면 전환율은 약 3.9%입니다. 시중 예금 금리와 비교해 전환율이 높으면 전세가, 낮으면 월세가 상대적으로 유리합니다.
주거비를 절약하려면 먼저 자신의 자금 상황과 투자 성향을 파악해야 합니다. 전세 대출을 활용할 경우 대출 이자율이 전세 기회비용보다 낮을 때 전세가 유리합니다. 월세 거주자라면 주택임대차보호법에 따른 계약갱신청구권을 활용해 임대료 상승을 5% 이내로 제한할 수 있습니다. 또한 전세사기 예방을 위해 HUG 전세보증보험 가입을 필수로 확인하고, 등기부등본과 국세·지방세 납부 여부를 계약 전 반드시 확인하세요. 장기 거주 계획이라면 이 계산기로 다양한 시나리오를 비교하여 본인에게 최적의 선택을 하세요.