About this tool
An early repayment fee calculator (중도상환수수료 calculator, loan prepayment penalty calculator) tells you what a bank charges when you pay back part or all of a loan before maturity, and whether the interest you save is larger than that fee.
Korean banks commonly use the formula fee = amount repaid x fee rate x (days remaining / total days of the fee period), so the fee shrinks as the end of the period approaches.
Household loans usually carry the fee only for the first three years, but the exact period, the rate and any free allowance depend on your contract, so enter the numbers printed in your loan agreement.
Since January 2025 Korean banks may charge only actual costs, so rates on new loans are mostly around 0.5-0.8%, while older loans may keep earlier rates of over 1%.
How much is the fee for repaying 100,000,000 won with a 0.6% rate when 730 of 1,095 days remain? 100,000,000 x 0.6% x 730 / 1,095 is 400,000 won. What if the loan interest is 4%?
Interest saved is 100,000,000 x 4% x 730 / 365 = 8,000,000 won, so repaying early saves roughly 7,600,000 won net of the fee. When is paying it back not worth it?
If the interest saved over the remaining days is smaller than the fee, or if you could earn more by keeping the cash in a higher-yield product. Do I have to pay the fee on every repayment?
Some banks allow a free amount each year or waive the fee for certain loans, so ask your bank.
The estimate counts days simply, does not include the interest you would earn by investing the money, and is a reference result that does not replace advice from your bank or a financial professional.
How to use
- Enter the amount you plan to repay and the fee rate from your loan contract.
- Enter the remaining days and the total fee period in days.
- Enter your loan interest rate and compare the fee with the interest saved.