Deposit Early Termination vs Secured Loan Calculator
Compare net interest loss, reinvestment and a deposit-secured loan at the same maturity date. Check break-even rates, durations and funding shortfalls in KRW.
Replace the fictional example with your bank terms.
Compare full termination of one KRW time deposit with a bullet loan. Both alternatives receive the same external cash, equal to the loan principal, on the repayment date.
Cost comparison under your assumptions · 2027-01-01
The secured loan has a lower net cost
1,019,790 KRW difference
Confirm repayment funds and bank terms before deciding. This nominal comparison excludes the opportunity cost of expense payment timing.
Net cost and adjusted assets at the same maturity
Net cost = assets from keeping the deposit − adjusted assets of each alternative. Lower is better; a negative cost represents extra gains under the reinvestment assumption.
| Item | Full termination | Keep deposit + loan |
|---|---|---|
| Net deposit interest | 145,442 KRW | 1,480,500 KRW |
| Net interest on remaining cash | 212,153 KRW | 0 KRW |
| Net interest on recovered principal | 25,032 KRW | 0 KRW |
| Loan interest | 0 KRW | 78,082 KRW |
| Loan fees and charges | 0 KRW | 0 KRW |
| Net cost ★ | 1,097,872 KRW | 78,082 KRW |
| Adjusted assets at maturity | 50,382,628 KRW | 51,402,418 KRW |
Exit proceeds: 50,145,442 KRW · Cash remaining after funding: 40,145,442 KRW · Cash required to repay principal: 10,000,000 KRW
Net deposit interest lost relative to maturity: 1,335,058 KRW · A negative value means the entered exit interest exceeds maturity interest.
Until deposit maturity 114 days · Loan duration 60 days · Remaining loan capacity: 37,500,000 KRW
Break-even annual loan rate
66.787%
At the current repayment date and fees, a lower rate favors the loan. This mathematical threshold is neither an available offer nor a statutory rate limit.
Break-even loan duration
No crossing before maturity
The funding and maturity dates stay fixed while the repayment date changes. Check the duration scenarios below.
Changing the repayment duration
Rates, fees and external recovered principal stay fixed. Update the inputs if changing the term changes the actual offer.
| Repayment date | Days | Termination cost | Loan cost | Termination − loan |
|---|---|---|---|---|
| 2026-09-10 | 1 | 1,070,522 KRW | 1,301 KRW | 1,069,221 KRW |
| 2026-09-16 | 7 | 1,073,304 KRW | 9,110 KRW | 1,064,194 KRW |
| 2026-10-09 | 30 | 1,083,966 KRW | 39,041 KRW | 1,044,925 KRW |
| ★ 2026-11-08 | 60 | 1,097,872 KRW | 78,082 KRW | 1,019,790 KRW |
| 2026-12-08 | 90 | 1,111,779 KRW | 117,123 KRW | 994,656 KRW |
| 2027-01-01 | 114 | 1,122,905 KRW | 148,356 KRW | 974,549 KRW |
Sources verified: 2026-09-09 · Korean context · KRW
Compare breaking a deposit with borrowing only what you need
This deposit early-termination versus deposit-secured loan calculator compares two ways to cover a temporary cash need before a time deposit matures.
It combines the amount affected, actual dates, after-tax interest and reinvestment of unused money instead of comparing headline rates alone.
The context is a Korean KRW deposit and 2026 Korean withholding rules, including editable tax assumptions.
If you need KRW 10 million from a KRW 50 million deposit for two months, terminating the entire deposit and borrowing KRW 10 million expose different amounts for different periods.
A higher annual loan rate does not by itself establish which choice costs less.
The calculator identifies the lower cost under your inputs and shows when changes in rates or repayment timing would change that comparison.
Use the result to prepare a bank comparison
Save the inputs, break-even rate, duration and funding shortfalls as CSV.
Compare them with the bank’s early-exit payout estimate, executable loan capacity, final annual rate and your repayment resources.
Every initial value is a fictional editable example, not an executable quote, approval prediction or product recommendation.
Align cash flows and use the same evaluation date
Full termination
Receive principal plus net early-exit interest on the funding date, then use the required cash.
Reinvest the remainder until the original deposit maturity date.
When the external principal is recovered on the selected repayment date, reinvest that amount for the rest of the evaluation period too.
Keep the deposit and borrow
Keep the deposit intact and borrow the required amount for the same purpose.
Use the same external principal arriving on the repayment date to repay the loan.
Retain the deposit’s net maturity interest and deduct loan interest and borrower-paid charges from adjusted assets.
Evaluation always occurs at the original deposit maturity date.
Both alternatives use the same cash and receive the same recovered principal, so loan principal is not counted again as a financing expense.
Omitting recovered principal from the termination alternative, or deducting loan principal as if it were interest, would bias the comparison.
Identify a realistic repayment source such as salary, a different maturing deposit or a confirmed receipt before treating the loan scenario as executable.
The displayed assets are adjusted by nominal financing costs.
There is no discounting or opportunity cost for when monthly interest and upfront charges are paid.
These figures are a comparable planning balance, not the exact final bank-account balance or a cash-flow internal rate of return.
Prepare the terms confirmed by your bank
Deposit and dates
Enter principal, opening date, termination or loan start date, principal repayment date and original maturity date.
The required order is opening ≤ funding < repayment ≤ maturity.
Elapsed deposit days run from opening to funding; remaining days run from funding to maturity.
Holiday adjustments, repayment after maturity and settlement of existing pledged debt need separate checking.
Rates or quoted net interest
Rate mode uses the contract annual rate and the actual annual rate applied on early exit.
The early-exit field is not a multiplier of the contract rate.
Quoted mode takes only the bank’s after-tax maturity interest and after-tax early-exit interest, avoiding an invented approximation of product-specific exit schedules.
Exclude principal from both quoted amounts.
Funding need, capacity and expenses
The funding need is the cash used now and the principal recovered on the repayment date.
Enter confirmed additional executable loan capacity, not an advertised ceiling.
The default KRW 47.5 million is 95% of the example principal, but changing principal does not automatically change capacity.
Borrower-paid upfront expenses, including your share of stamp duty, and early-repayment charges are paid from separate cash rather than deducted from loan proceeds.
Reinvestment and day divisor
Use the annual yield available on unused cash and later recovered principal until evaluation.
Set the reinvestment tax rate independently because the original deposit’s tax treatment may not carry over.
The model divides actual elapsed days by a fixed 365 or 366 for simple interest.
It does not change the divisor year by year or reproduce bank-specific tax truncation.
Net cost and break-even formulas
P is deposit principal, B is required cash, I_m is net maturity interest and I_e is net early-exit interest.
J_Q is net interest on remaining cash, J_B is net interest on recovered principal, L is loan interest, F is total loan charges, d is borrowing days and Y is the selected annual day divisor.
No intermediate rounding is applied; displayed amounts are rounded to whole KRW.
Simple after-tax interest = principal × annual rate ÷ 100 × actual days ÷ Y × (1 − tax rate ÷ 100)
Remaining cash Q = P + I_e − B
Termination net cost C_e = I_m − I_e − J_Q − J_B
Loan net cost C_l = B × annual loan rate ÷ 100 × d ÷ Y + F
Cost difference Δ = C_e − C_l = loan adjusted assets − termination adjusted assets
Break-even annual rate (%) = (C_e − F) × Y ÷ (B × d) × 100
A positive difference favors the loan; a negative difference favors termination.
A negative net cost is preserved: sufficiently strong reinvestment assumptions can produce more interest than retaining the original deposit.
Check that the entire balance qualifies for that rate and can remain invested until evaluation.
A new deposit that must itself be broken early may not deliver the yield entered here.
Step-by-step use
- Enter one deposit’s principal, the cash needed and all four dates.
Confirm additional executable borrowing capacity in the bank app before relying on a loan scenario. - Select annual simple-rate estimation or quoted after-tax interest.
Quoted mode is useful when special termination terms or bonus-interest recovery make the published annual rate insufficient. - Enter the final loan rate including base rate, spread and discounts, along with borrower-paid charges.
Set the reinvestment yield and tax rate separately from the original deposit. - Read funding warnings before comparing net costs and adjusted assets.
Loan figures with a capacity shortfall assume full funding conditionally and do not establish an executable preferred choice. - Review the duration scenarios and break-even outputs, then save the CSV.
When changing a repayment date, also update any fees or yields that would change under the actual offer.
Worked example: borrow KRW 10 million against a KRW 50 million deposit
Assume a KRW 50,000,000 deposit opened on 2026-01-01 and maturing on 2027-01-01.
KRW 10,000,000 is needed on 2026-09-09, with the same external principal recovered on 2026-11-08.
The fictional rates are 3.5% for maturity, 0.5% for early exit, 4.75% for the loan and 2% for reinvestment, with both withholding rates at 15.4%, a 365-day divisor and zero charges.
There are 251 elapsed deposit days, 114 remaining days and 60 borrowing days.
| Item | Rounded KRW |
|---|---|
| Net maturity interest | 1,480,500 |
| Net early-exit interest | 145,442 |
| Net interest on remaining cash | 212,153 |
| Net interest on recovered principal | 25,032 |
| Termination net cost | 1,097,872 |
| Loan net cost | 78,082 |
| Loan cost saving | 1,019,790 |
| Termination adjusted assets | 50,382,628 |
| Loan adjusted assets | 51,402,418 |
The mathematical break-even annual loan rate is approximately 66.787%, not an available offer or statutory rate limit.
A large exit-interest loss relative to a small, short loan can produce a high threshold.
At the entered loan rate, there is no cost crossing before deposit maturity.
Adding individually rounded rows can differ from the internally calculated total by about one won.
Break-even duration also changes the reinvestment period
Moving repayment later increases loan interest and shortens the period for investing recovered principal in the termination alternative.
Simply dividing today’s termination cost by daily loan interest would omit the second effect.
This calculator fixes the funding and maturity dates and adjusts both effects together.
Let k be the after-tax annual reinvestment rate as a decimal and h be remaining days to maturity.
C = I_m − I_e − J_Q − B × k × h ÷ Y − F, and s = B × (annual loan rate ÷ 100 − k) ÷ Y.
Then Δ(d) = C − s × d and the crossing is d* = C ÷ s.
When s is zero, changing duration does not change the cost gap, so there is no unique crossing duration.
When the loan rate exceeds the after-tax reinvestment rate, a shorter loan generally improves the loan alternative.
If the loan rate is lower, the crossing direction can reverse.
Read the explanation beside the result to see whether shorter or longer borrowing favors the loan.
A displayed fractional day is a continuous mathematical boundary; enter actual whole repayment dates on either side and check bank processing availability.
Practical scenarios to explore
A brief gap before a confirmed receipt
Use the actual days between a housing payment and another deposit’s maturity rather than rounding the period to a month.
A short bridge can have a different cost from the headline annual rate’s impression.
Prepare separate cash for monthly interest payments as well as principal repayment.
Most of the deposit is needed
A larger borrowing need increases interest and may exceed collateral capacity.
Termination proceeds also include net interest, so the two routes can have different funding availability.
Distinguish the lower-cost alternative from one that can actually provide all the cash now.
A stronger reinvestment offer
The more cash remains after termination, the more its reinvestment yield matters.
Do not apply an advertised top rate to the entire balance without checking tiers, caps and duration conditions.
If the reinvestment product would need early termination at evaluation, account for that in the entered yield.
A household repayment discussion
Saving the inputs helps explain where recovered principal, monthly interest and charges will come from.
Share the rates, tax assumptions and dates together with the saving figure.
Uncertain repayment funds require revisiting the plan even when confirmed collateral capacity is sufficient.
Korean tax, product context and model limits
- The 2026 standard-interest default is 15.4%: 14% under Income Tax Act Article 129(1)(1)(d), plus local tax equal to 10% of that withheld income tax under Local Tax Act Article 103-13(1).
This is not a final comprehensive income-tax calculation. - The referenced KB product describes borrowing within 95% of eligible deposit contributions and repayment no later than the pledged deposit maturity.
Its published early-repayment-charge exemption is product-specific; enter your own confirmed capacity, final rate and charges. - Amounts are whole KRW, rates and tax assumptions range from zero to 100%, and the model supports at most 3,660 total deposit days.
Input maxima are calculation bounds, not statutory product limits. - Floating rates, installment principal repayments, multiple deposits, partial exits, installment savings, interim interest payments or recovery, final loan approval and business interest deductions are excluded.
Simple-interest estimates use a fixed 365 or 366 divisor; year-specific conventions and tax truncation can differ from bank settlement.
Frequently asked questions
Does a loan rate above the deposit rate always favor termination?
No.
The loan charges interest on the amount needed for its actual duration, while full termination can sacrifice interest on the entire deposit.
Compare net costs including interest earned on remaining cash and on the principal recovered at repayment.
Should the early-exit rate be a percentage of the contract rate?
Enter the actual annual rate applied to early termination.
If the product describes a multiplier or a holding-period schedule, ask the bank for the final annual rate.
Use quoted after-tax interest when bonus conditions, special termination rules or rate tiers make a simple-rate estimate unsuitable.
Can I enter the entire maturity payout in quoted mode?
No.
Enter only after-tax interest, excluding the deposit principal.
Entering the full payout would count principal twice.
The same rule applies to early-exit interest, and quoted net amounts are not taxed again using the deposit tax-rate field.
What if the repayment funds will not arrive before maturity?
This model assumes the external principal arrives on your selected repayment date in both alternatives.
A low displayed loan cost does not make an unfunded repayment plan executable.
Use the actual cash-recovery date; if it falls after deposit maturity, assess a different repayment or refinancing arrangement separately.
Does the calculator automatically borrow less when capacity is insufficient?
No.
It shows the funding shortfall and withholds the preferred alternative and break-even conclusions.
Confirm the executable capacity, then reduce the funding need or separately assess the cost of financing the remaining amount.
No hidden unsecured borrowing is added.
Can I model partial withdrawals, installment savings or monthly interest payments?
The scope is full termination of one KRW time deposit.
It does not calculate the rate on a partially retained balance, monthly savings contributions, or recovery of interest already paid.
Quoted interest can improve the deposit estimate, but a different cash-flow structure needs a separate model.
What does no break-even duration mean?
There is no cost intersection between the fixed funding date and deposit maturity.
It does not describe every possible future loan term.
Read the duration table together with the current cost comparison, and update rates or fees if the actual offer changes when you change the repayment date.
Should I set both tax rates to zero for a tax-exempt deposit?
Only if both products actually qualify.
The original deposit exemption may not carry over to the reinvestment account.
Enter the two tax rates independently, or use the original deposit’s quoted net interest.
Exemption eligibility, limits and final comprehensive income tax are outside this calculator.
Official sources and verification date
Sources were checked on 2026-09-09 through the National Law Information OPEN API and the bank’s official product page.
The current statute identifiers are Income Tax Act ID 001565 / MST 280405 and Local Tax Act ID 001649 / MST 282559.
The search identifies the current versions effective 2026-07-01, while the cited withholding articles in the detail response carry the 2026-01-01 effective date.
The separate July commencement provisions do not establish a new general deposit withholding rate.
The referenced bank page bears review number 2025-4098-1 dated 2025-09-30.
Recheck loan capacity, spreads, charges, deposit exit terms and withholding rules when products change and during quarterly maintenance.
Compare your actual terms
Enter the bank’s expected net early-exit interest and final loan offer, then compare realistic repayment dates.
Use the deposit-interest calculator for a more detailed payout estimate or the loan-interest calculator to examine a general repayment structure.
Keep the comparison CSV together with the dated terms used to prepare it.
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