Korea Early Repayment Fee Calculator
Last updated: 2026-06-25
The early repayment fee is repayment principal × fee rate × (remaining term ÷ total loan term), shrinking as you approach maturity.
The fee rate is usually 0.5-1.4%, and it is often waived 3 years after the loan is disbursed.
Enter loan repayment details
Estimated early repayment fee
0 KRW
| Item | Amount |
|---|---|
| Early repayment principal | |
| Fee rate | |
| Remaining-term ratio | |
| Maximum fee (without remaining-term ratio) | |
| Estimated early repayment fee |
A reference estimate. Each bank's method and waiver conditions can differ, so confirm the exact figure with your loan agreement, your bank and the Financial Supervisory Service.
How to use
- Enter repayment principal — Enter the principal you will repay early, in won.
- Enter fee rate and terms — Enter the fee rate (%) and the remaining term and total loan term (days or months).
- View the result — The early repayment fee reflecting the remaining-term ratio is shown in a table.
How the early repayment fee works and the waiver
The early repayment fee (prepayment penalty) is a charge to the bank for repaying a loan before its agreed maturity. The common sliding (declining) method is fee = early repayment principal × fee rate × (remaining term ÷ total loan term). The longer the remaining term the larger the fee, and it gradually shrinks as maturity approaches.
| Remaining term | Remaining ratio | Estimated fee |
|---|---|---|
| 30 months | 83.3% | 500,000 KRW |
| 18 months | 50.0% | 300,000 KRW |
| 6 months | 16.7% | 100,000 KRW |
Most loans waive the early repayment fee 3 years after disbursement. So you should compare whether paying the fee to cut the remaining interest is worthwhile. Check the remaining loan interest with the Loan Interest Calculator, and the return from depositing the repayment funds with the Compound Interest Calculator.
Frequently asked questions (FAQ)
How is the early repayment fee calculated?
Early repayment fee = repayment principal x fee rate x (remaining term / total loan term). The longer the remaining term the larger the fee, and it shrinks toward maturity on a sliding scale.
What is a typical early repayment fee rate?
For mortgages and credit loans it is usually 0.5% to 1.4%. It varies by product and bank, so check the early repayment penalty clause in your agreement.
Is the fee waived after 3 years?
Most loans waive the early repayment fee 3 years after disbursement. So after 3 years you can often repay the principal without a fee.
Is this result exact?
This is an estimate using the common sliding-scale method. Each bank's method (declining or fixed) and waiver conditions can differ, so confirm the exact figure with your loan agreement and bank.
Related calculators & guides
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Compound Interest Calculator
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Savings Interest Calculator
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Repayment method guide
Equal payment vs equal principal vs bullet compared.
Last updated: 2026-06-25