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Maturity payout · Pre-tax/After-tax interest · Monthly scheduleSavings calculator

If you enter the monthly payment, annual interest rate, and period, the maturity payout, pre-tax and post-tax interest, and interest income tax are calculated immediately.

🏦 Maturity payout💰 Pre-tax · Post-tax📋 Monthly Schedule💡 Tax-saving tips
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🏦 Enter savings information
Monthly payment500,000 won
원
10,0002.5 million5 million7.5 million10 million
Annual interest rate4.0%
%
0.1%5%10%15%20%
period24 months
months
1 month15 months30 months45 months60 months
💡 Savings interest is Monthly payment × Interest rate × Remaining period / 12Calculated as follows. Interest income tax 15.4% Please also check the after-tax amount after application.
📊 Calculation result
🏦

After entering the monthly payment, interest rate, and period
Calculate Please press the button.

Maturity payout (after tax)
—
—
Maturity payout (pre-tax)—
Pre-tax interest—
After-tax interest—
Interest income tax (15.4%)—
Total payment—
Real rate of return after tax—
Payment vs. Interest Ratio
Payment —interest —
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What is a savings calculator?

An installment savings account is a financial product where you deposit a fixed amount every month and receive both the principal and interest at maturity. Unlike deposits, even with the same interest rate, the interest calculation method differs for installment savings because the investment period of the newly deposited amount varies each month.

Installment Interest Calculation Formula

Total Interest = Σ (Monthly Payment × Annual Interest Rate × Remaining Period of the Month / 12)
= Monthly Payment × Annual Interest Rate / 12 × n(n+1)/2 (n=Payment Months)

The difference between savings and installment savings

With a deposit, you deposit a lump sum all at once and receive interest over the entire period. Since installment savings are paid monthly, you receive interest for the entire period only on the first month's payment, and only one month's worth of interest on the last month's payment. At the same interest rate, the effective interest on a deposit is approximately twice that of an installment savings.

Tax-saving methods

  • ISA Account: Tax-exempt up to 2 million won per year, separate taxation for the excess 9.9%
  • Tax-exempt savings: Full tax exemption on interest income upon meeting certain conditions
  • Youth Preferential Subscription: Tax-free benefits up to an annual limit of 5 million won

Frequently Asked Questions

How is installment interest calculated?
For installment savings, the remaining period is applied differently for each monthly deposit. The first month's deposit accrues interest for the entire period, while the last month's deposit accrues interest for only one month. Formula: Total Interest = Monthly Deposit × Annual Interest Rate / 12 × n(n+1) / 2 (n = Number of Deposit Months)
Which is more advantageous, savings or installment savings?
If you have a lump sum, a deposit is more advantageous in terms of interest. If you have the ability to save every month, a installment savings plan is suitable. Since deposit interest is about twice that of an installment savings plan based on the same principal and interest rate, it is common practice to manage lump sums through deposits and surplus funds through installment savings.
Is there a way to reduce interest income tax?
With an ISA (Individual Savings Account), interest income up to 2 million won per year (4 million won for the low-income and farmer/fisherman type) is tax-exempt. Any amount exceeding this is subject to separate taxation, which is more advantageous than the general 15.41%. If you meet the conditions, consider utilizing dedicated tax-exempt savings products as well.
What happens to the interest if I cancel early?
Most installment savings products apply an early withdrawal interest rate (usually ranging from 0.1% to 11%) instead of the agreed-upon interest rate upon early termination. Since interest is significantly reduced if you terminate before maturity, it is advisable to use a parking account or a CMA if you anticipate early withdrawal.

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