Calculate interest and monthly payments for mortgages, personal loans, and more. Compare equal principal & interest vs. equal principal repayment methods to find the best loan terms.
Enter the loan amount in KRW. For mortgages, up to 70% (LTV) of the property value is available. Personal loan limits depend on income and credit rating.
Enter the annual interest rate as a percentage. Mortgage rates are typically 3.5~5.5%, and personal loan rates are 5~15%.
Select the repayment period in months. Mortgages typically range from 10~30 years (120~360 months), personal loans from 1~5 years (12~60 months).
Equal Principal & Interest pays the same amount each month. Equal Principal divides the principal evenly, resulting in decreasing payments over time.
A couple purchasing a 500M KRW apartment with 200M down payment, borrowing 300M at 4.5% for 30 years. Monthly payment: ~1.52M KRW, total interest: ~250M KRW.
A cafe owner borrowing 50M KRW at 7% for 3 years for renovation. Monthly payment: ~1.54M KRW, total interest: ~5.5M KRW.
Borrowing 300M KRW at 3.2% for 2 years for apartment deposit. Interest-only payments for first year (~800K/month), then principal repayment begins.
If your income is stable, Equal Principal saves 10~20% on total interest. For a 300M KRW loan at 4% over 20 years, the difference is about 7M KRW. However, if cash flow is tight initially, Equal Principal & Interest offers more predictable payments.
Rates = Base rate + Spread. Base rates follow the Bank of Korea rate or COFIX. Spread depends on credit rating (0~5% difference), income, collateral value, and loan term.
Early repayment fees are typically 0.5~1.4% of the repaid amount, charged within the first 3 years. Low-income borrowers may be exempt since 2023.
LTV (Loan-to-Value): max loan vs. property value (typically 70%). DTI (Debt-to-Income): annual repayments vs. income (max 50%). DSR (Debt Service Ratio): stricter than DTI, includes all loans (max 40%).
Personal loans: 1~3 days. Mortgages: 1~2 weeks. Prepare income verification, ID, and other documents in advance for faster processing.
Refinance when rates drop 1%+ below your current rate. Consider early repayment fees (0.5~1.4%) and new loan fees (~500K KRW). A 1% reduction on 200M KRW over 10 years saves ~10M KRW.
Interest-only loans defer principal payments for 1~3 years, reducing initial burden but increasing total interest by 20~30%. Plan carefully as payments increase significantly after the grace period.
This calculator is for reference only. Actual loan terms vary by bank, credit rating, income, and collateral. Please consult a financial institution for accurate rates and conditions. Excessive borrowing may affect your credit score.
Loan interest is the cost a financial institution charges for lending money, calculated by applying an interest rate to the principal. Interest rates are expressed as annual rates (APR), and monthly calculations use the annual rate divided by 12.
Equal Principal & Interest (annuity) payments stay the same every month, with interest making up a larger share early on and the principal share growing over time. Equal Principal payments divide the principal evenly each month, with interest added on top, meaning payments start high and decrease. Equal Principal suits borrowers with stable income and upfront cash, while Equal Principal & Interest suits those who prefer predictable monthly expenses.
The most effective way to reduce loan interest is to compare rates across multiple financial institutions. Mortgage rates can differ by 0.3–1% between banks, and a 0.5% rate difference on a 300M KRW loan results in about 25M KRW more in interest over 30 years. Managing your credit score to reduce the spread, choosing products with no early repayment fees, and selecting between fixed and variable rates based on market conditions are all key cost-reduction strategies.