Korea Loan Prepayment Fee Calculator
Estimate the early-repayment fee your bank can charge on a Korean loan, see when that fee legally disappears, and compare it against the interest you'd save by paying early.
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Inputs
The portion of principal you plan to repay early, on top of your normal payment schedule.
Set by your bank and loan product — check your loan contract or ask your bank. See the article below for typical published ranges; this calculator does not assume a specific bank's rate.
The date your loan was first disbursed. The legal 3-year fee window also starts counting from this date.
The date you plan to make, or already made, the early repayment. Defaults to today.
How many months your bank charges a prepayment fee for, per your contract — commonly 36 (3 years). If you enter more than 36, this calculator still caps it at 36 by law.
Used only to estimate the interest you save by repaying early.
How many years are left on your loan as of the prepayment date. Used only for the interest-saved estimate.
Result
- Prepayment fee
- 200,000KRW
- Interest saved (rough estimate)
- 25,917,925KRW
- Net benefit (interest saved − fee)
- 25,717,925KRW
- Days since loan disbursement
- 730days
- Days remaining in the fee period
- 365days
- Result
- The interest-saved figure assumes the prepaid amount is repaid on its own as a standard equal-installment loan over the remaining term at your loan's rate — the same formula this site's Loan Payment calculator uses. That matches equal-installment repayment, the most common structure for Korean mortgages; if your actual loan uses equal-principal or interest-only repayment instead, your real savings will differ.
50,000,000 × 1.2% × (365/1,095) = 200,000.00 / 50,000,000 · 4.5% · 20 → 25,917,925.15 / 25,717,925.15
Year-by-year breakdown
Aggregated by year. Figures are rounded, so yearly rows may differ slightly from the totals above.
| Months after disbursement | Prepayment fee (KRW) | Interest saved (KRW) | Net benefit (KRW) |
|---|---|---|---|
| 0 | 600,000 | 28,854,975 | 28,254,975 |
| 1 | 583,014 | 28,731,369 | 28,148,355 |
| 2 | 566,575 | 28,607,870 | 28,041,295 |
| 3 | 549,589 | 28,484,477 | 27,934,888 |
| 4 | 533,151 | 28,361,191 | 27,828,040 |
| 5 | 516,164 | 28,238,011 | 27,721,846 |
| 6 | 499,178 | 28,114,938 | 27,615,759 |
| 7 | 483,836 | 27,991,971 | 27,508,135 |
| 8 | 466,849 | 27,869,111 | 27,402,262 |
| 9 | 450,411 | 27,746,358 | 27,295,947 |
How it works
FormulaFee = prepaid principal × fee rate × (remaining days in fee period ÷ total days in fee period), with the fee period capped at 3 years (36 months) by law. Interest saved (approx.) = prepaid principal × loan interest rate × remaining loan term in years.
Korean banks are allowed to charge a fee when you repay a loan earlier than scheduled — but only within limits set by the Financial Consumer Protection Act. Under Article 20, Paragraph 1, Item 4(b) of that law, prepayment fees are banned by default, and a bank may charge one only as an exception, and only if the prepayment happens within 3 years of the loan's disbursement date. Once 3 years have passed, no fee can legally be charged, no matter what the original contract says.
Within that 3-year window, the fee rate itself and the exact number of months a bank applies it for are not set by law — they vary by bank and by loan product, so this calculator asks you to enter both rather than assuming a figure. As a rough sense of scale, Korea's Financial Services Commission reported that after a 2024 reform, average bank rates ran around 0.55-0.56% for mortgages and around 1.20-1.24% at savings banks — treat these only as reference points, not as your actual rate.
Almost every Korean bank uses the same declining, or sliding, method to calculate the fee: it shrinks the closer you get to the end of the fee period, calculated as principal times fee rate times the ratio of days remaining in the fee period to total days in the fee period. This calculator applies that formula using your actual disbursement and prepayment dates, and automatically caps the fee period at 3 years (36 months) even if you enter a longer number, since Korean law does not allow charging beyond that window.
This calculator also estimates whether prepaying is worth it financially, by comparing the fee against the interest you avoid paying. That estimate treats the prepaid amount as its own equal-installment loan, amortized over the remaining term at your loan's interest rate — using the same formula as this site's Loan Payment calculator. This matches equal-installment repayment, the standard structure for most Korean mortgages; if your actual loan instead uses equal-principal or interest-only repayment, the real interest saved will differ from this figure.
For an exact, month-by-month repayment schedule showing precisely how much interest remains on a loan, use this site's Loan Payment calculator alongside this one — that tool builds a full amortization table rather than approximating.
One more thing worth knowing: even inside the fee-eligible window, some banks waive the fee under specific conditions, for example certain government-backed mortgage programs, or repaying with funds from selling the same property. Those exemptions are contract- and program-specific, so check your own loan terms rather than assuming this calculator accounts for them.
| Months since loan start | Remaining fee share |
|---|---|
| 0 months | 100.0% |
| 6 months | 83.4% |
| 12 months | 66.6% |
| 18 months | 50.1% |
| 24 months | 33.3% |
| 30 months | 16.8% |
| 36 months (cap reached — fee is 0) | 0.0% |
Frequently asked questions
- Can a Korean bank always charge a prepayment fee?
- No. Under the Financial Consumer Protection Act, prepayment fees are banned by default and can only be charged as an exception, and only within 3 years of the loan's disbursement date. After 3 years, no legal basis exists for the fee.
- Why does this calculator ask for the fee period in months if the law caps it at 3 years?
- Because your specific loan contract might specify a shorter fee period, or even zero if your bank waives fees entirely, and this calculator needs to reflect what your contract actually says — while still applying the legal 36-month ceiling if your contract's stated period exceeds it.
- Is the sliding-scale calculation method required by law?
- No — the exact formula is standard bank practice, not a statutory formula. Nearly every Korean bank uses this same declining, day-proportional method, and it is consistent with the law's general requirement that fees stay within the bank's actual cost, but the specific math itself is a widely adopted convention rather than something the law spells out.
- Is the interest-saved figure exact?
- It uses the standard equal-installment amortization formula — the same one powering this site's Loan Payment calculator — treating the prepaid amount as if it were its own loan over the remaining term at your interest rate. That is accurate for equal-installment loans, the most common structure for Korean mortgages. If your actual loan uses equal-principal or interest-only repayment instead, your real savings will differ from this figure.
- What happens if I enter a fee period longer than 36 months?
- The calculator still uses 36 months (3 years) for the actual fee math, since Korean law does not allow prepayment fees beyond that point regardless of what a contract states, and it shows a notice explaining that the legal cap was applied.
Figures used in this calculation
Every time-sensitive figure this calculator applies, with the source it was read from and the date it was last checked.
Primary = original source document · Derived = calculated from two official figures · Secondary = a source that cites the original
Statutory maximum period for charging a prepayment fee
3 years (36 months) from the loan date
Checked 2026-08-12 · next 2027-08-12
Sliding-scale method (reduced in proportion to the remaining term) — industry practice
Fee = prepaid principal × rate × (remaining term ÷ chargeable term)
Checked 2026-08-12 · next 2027-08-12 · Interval unverified
Sources
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Last updated: 2026-08-22