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Jeonse vs. Wolse: which is cheaper?

Jeonse ties up a big deposit. Wolse means rent every month. This calculator finds which actually costs you less.

Jeonse vs. Wolse calculator

Enter the details for each option to see which costs you less over your stay.

Option A: Jeonse (전세)

₩
₩
%

Amount borrowed + annual interest rate

No monthly rent. Deposit returned at end of lease.

Option B: Wolse (월세)

₩
₩
%

What your cash earns elsewhere (bank, investment)

Jeonse cost = loan interest on borrowed portion + lost returns on your own cash. Wolse cost = rent paid + lost returns on the deposit. Annual return rate is what your cash could earn elsewhere. For informational purposes only.

How the calculation works

The key insight is that a jeonse deposit is not "free" money. Most people doing jeonse borrow part of the deposit via a jeonse loan (전세대출) and fund the rest from their own savings. Both portions carry a real cost.

Jeonse true cost

Jeonse cost = (loan amount × loan rate × years) + (your own cash × return rate × years)

The borrowed portion costs you loan interest. The self-funded portion costs you the returns you could have earned on that cash elsewhere (a savings account, investment, etc.). Your deposit is returned in full at the end of the lease, so there is no principal loss. The only costs are these two carrying costs.

Wolse true cost

Wolse cost = (deposit × rate × years) + (monthly rent × 12 × years)

You pay rent every month and you also have a smaller deposit locked up. Both count as real costs.

What the break-even rent means

The break-even monthly rent is the rent that would make jeonse and wolse cost exactly the same. If the actual monthly rent is below the break-even figure, jeonse is cheaper. If it is above, wolse is cheaper.

Break-even rent = (jeonse deposit − wolse deposit) × rate ÷ 12

What return on cash should I use?

Use whatever you could realistically earn on your own cash if it were not locked into a deposit. Korean bank savings accounts have offered around 2.5% to 4% in recent years. If you would invest the money, use your expected return. If you are unsure, the default of 3.5% is a reasonable estimate for a Korean savings account.

One important caveat:This calculator only compares financial cost. Jeonse also carries deposit risk if the landlord cannot return the deposit. For large jeonse deposits, always check the building's registered mortgage against your deposit amount before signing.

Also check your agent fees

Korean agent commissions are legally capped. Use our fee calculator to verify your agent is not overcharging.

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