About this tool
This calculator estimates the maturity amount of a Korean installment savings account (์ ๊ธ). Pick simple interest or monthly compounding. With simple interest, interest = monthly deposit x annual rate / 12 x n(n+1)/2, where n is the number of months, assuming a deposit at the start of every month. For example, 300,000 won a month at 4% for 12 months gives 78,000 won of interest before tax. Korean interest income is normally taxed at 15.4%, made up of 14% income tax and 1.4% local income tax, so the tax is 12,012 won and the after-tax interest is 65,988 won, for a payout of 3,665,988 won on 3,600,000 won of deposits. You can switch to tax-free 0% to compare; tax-preferred products use different rates, so check yours with your bank. Compounding adds a little more interest over long terms. Banks pay on the actual deposit dates and may add preferential rates, so the real figure can differ. The result is a reference estimate and does not replace advice from a financial professional.
How to use
- Enter your monthly deposit and the annual interest rate.
- Enter the term in months and pick simple or monthly compound interest.
- Choose the tax type: standard 15.4% or tax-free.
- Read the interest before tax, the tax and your after-tax payout.