Compare one Korean senior-living contract with staying in the current home over five and ten years, including deposit recovery, home disposition, care transition, present value, initial funding, and terminal assets.
Model deposit capital, home equity, monthly costs, added care, and terminal assets in monthly present value.
Editable synthetic cases
Defaults are synthetic examples that explain the model, not Korean senior-living, home, rental, or care market averages or recommendations.
Align the horizon, discount rate, liquid funding, and care-transition month first.
Use one actual written contract, not a published market-price table.
Include home capital, living, ownership, debt, adaptation, and care on one evidence date.
Treat sale proceeds as entry funding and retained property as a terminal asset consistently.
Confirm every item before treating the result as contract-review ready.
Five- and ten-year household housing economics
Lower present-value net cost now
Stay-at-home alternative
Present-value difference: KRW 22,105,161
Planning scenario only
Unconfirmed evidence items: 5
Lower cost does not recommend or guarantee facility quality, health fit, property return, or contract safety.
Net home-sale proceeds
KRW 594,000,000
Assumed deposit refund
KRW 300,000,000
Deposit present-value cost
KRW 76,771,826
Terminal net home equity
KRW 656,145,542
Break-even senior-living monthly base cost
KRW 2,808,410
| Metric | Enter senior living | Stay at home |
|---|---|---|
| Present-value net cost | KRW 513,970,822 | KRW 491,865,661 |
| Nominal economic net cost | KRW 512,211,025 | KRW 391,885,402 |
| Equivalent monthly cost | KRW 4,953,343 | KRW 4,740,307 |
| Net initial cash need | KRW -284,000,000 | KRW 15,000,000 |
| Initial funding gap | KRW 0 | KRW 0 |
| Nominal cash cost | KRW 512,211,025 | KRW 448,030,945 |
| Assumed terminal assets | KRW 300,000,000 | KRW 656,145,542 |
| Capital and recovery PV cost | KRW 82,771,826 | KRW 111,766,095 |
| Recurring PV cost | KRW 418,966,715 | KRW 365,099,566 |
| Entry, adaptation, and exit PV | KRW 12,232,282 | KRW 15,000,000 |
Economic cost includes capital committed and terminal recovery. Negative values are recovery or income.
| Metric | Enter senior living · Nominal | Enter senior living · Present value | Stay at home · Nominal | Stay at home · Present value |
|---|---|---|---|---|
| Initial deposit and home capital | KRW 306,000,000 | KRW 306,000,000 | KRW 600,000,000 | KRW 600,000,000 |
| Entry, adaptation, and exit | KRW 13,000,000 | KRW 12,232,282 | KRW 15,000,000 | KRW 15,000,000 |
| Living and services | KRW 418,343,990 | KRW 359,114,327 | KRW 251,006,394 | KRW 215,468,596 |
| Added care | KRW 74,867,035 | KRW 59,852,388 | KRW 112,300,552 | KRW 89,778,582 |
| Home ownership and debt service | KRW 0 | KRW 0 | KRW 69,723,998 | KRW 59,852,388 |
| Rental-income offset | KRW 0 | KRW 0 | KRW 0 | KRW 0 |
| Deposit and home recovery | KRW -300,000,000 | KRW -223,228,174 | KRW -656,145,542 | KRW -488,233,905 |
Change only the horizon while holding every other input fixed.
| Horizon | Enter senior living | Stay at home | Present-value difference | Lower alternative |
|---|---|---|---|---|
| 5 years | KRW 239,362,355 | KRW 214,133,854 | KRW 25,228,501 | Stay-at-home alternative |
| 10 years | KRW 513,970,822 | KRW 491,865,661 | KRW 22,105,161 | Stay-at-home alternative |
The 50%, 80%, and 100% rows are risk scenarios, not guaranteed recovery rates.
| Refund scenario | Assumed deposit refund | Deposit present-value cost | Present-value net cost | Lower alternative |
|---|---|---|---|---|
| 50% | KRW 150,000,000 | KRW 188,385,913 | KRW 625,584,910 | Stay-at-home alternative |
| 80% | KRW 240,000,000 | KRW 121,417,460 | KRW 558,616,457 | Stay-at-home alternative |
| 100% | KRW 300,000,000 | KRW 76,771,826 | KRW 513,970,822 | Stay-at-home alternative |
Year one includes initial capital; the final year includes deposit and home recovery.
| Horizon | Enter senior living · Nominal in year | Enter senior living · Cumulative present value | Stay at home · Nominal in year | Stay at home · Cumulative present value |
|---|---|---|---|---|
| 1 years | KRW 352,492,358 | KRW 351,911,433 | KRW 642,977,474 | KRW 642,532,098 |
| 2 years | KRW 37,587,128 | KRW 387,822,865 | KRW 28,816,799 | KRW 670,064,197 |
| 3 years | KRW 38,714,743 | KRW 423,734,298 | KRW 29,681,304 | KRW 697,596,295 |
| 4 years | KRW 39,876,185 | KRW 459,645,731 | KRW 30,571,743 | KRW 725,128,394 |
| 5 years | KRW 41,072,470 | KRW 495,557,164 | KRW 31,488,895 | KRW 752,660,492 |
| 6 years | KRW 56,406,194 | KRW 543,439,074 | KRW 53,585,883 | KRW 798,148,307 |
| 7 years | KRW 58,098,380 | KRW 591,320,984 | KRW 55,193,460 | KRW 843,636,122 |
| 8 years | KRW 59,841,330 | KRW 639,202,894 | KRW 56,849,263 | KRW 889,123,936 |
| 9 years | KRW 61,636,570 | KRW 687,084,805 | KRW 58,554,741 | KRW 934,611,751 |
| 10 years | KRW -233,514,333 | KRW 513,970,822 | KRW -595,834,158 | KRW 491,865,661 |
The Welfare of Older Persons Act, Law ID 001777 and MST 259093, and its Enforcement Rule, Law ID 006940 and MST 282119, checked September 1, 2026, provide the age-60 and independent-living context, lease-contract basis, operating-rule items, and deposit-protection checks for statutory senior welfare housing. This calculator does not classify a facility, decide eligibility, refund entitlement, security effectiveness, tax, or a dispute.
Rules and method checked 2026-09-01
A senior-living decision cannot be reduced to the advertised monthly management fee. A useful comparison also needs the opportunity cost of the entry deposit, moving and exit expenses, meals and mandatory services, contractual fee escalation, and added care that may begin later. Staying in the current home is not a zero-cost baseline either. Home equity, property ownership, repairs, debt service, safety work, transport, and feasible in-home care all belong in the same decision frame.
This calculator expands one actual community contract and one stay-home plan into monthly cash flow, discounts each flow to the same valuation date, and compares present-value net cost over five and ten years. It also distinguishes selling, renting, and retaining the home. That prevents two common errors: counting sale proceeds as recurring income while ignoring the equity surrendered, or retaining a home but forgetting its terminal value.
Every default amount, escalation rate, home-value rate, and care date is an editable synthetic example. The defaults are not a 2026 Korean market average, a quote from a named community, or a forecast. Replace them with a written contract and evidence tied to your current home before using the output in a family decision.
Use the final written or electronic lease, operating rules, payment schedule, guarantee documents, home statements, and third-party quotes. A brochure headline is not enough. If a service appears in one alternative but not the other, either add its real cost to the missing side or remove it from both sides. Meals, transport, monitoring, housekeeping, and personal assistance must describe comparable service levels.
Transfer the deposit, contract-based refund assumption, entry and exit costs, all-in monthly living and service charge, escalation assumption, and separately quoted future care cost from written documents.
Use same-date evidence for home value and debt, then add living cost, property tax, insurance, common charges, repairs, loan payments, safety adaptation, and feasible in-home care.
A sale produces initial funding, a rental keeps terminal home equity and subtracts vacancy-adjusted rent, and a vacant hold keeps ownership costs and terminal equity without rental income.
Apply one horizon, discount rate, available liquid assets, after-tax retirement income, and added-care start month to both alternatives so the comparison does not move the goalposts.
If the community charge includes meals and a shuttle, include comparable food and mobility costs in the at-home side. If hands-on care is charged separately, do not hide it inside the base service. Enter it after the added-care start month using an actual quote. For a couple, include the second-person charge, mandatory club or service fees, and any charge that continues during a temporary absence.
The model places capital and setup costs at month zero, operating and care flows in their actual months, and deposit or home-equity recovery at the end of the selected horizon. The annual discount rate is converted to an effective monthly rate. Discounting is a consistent way to compare timing; it is not a prediction of investment returns or inflation.
Refund at exit = entry deposit × assumed refund percentage
Deposit PV cost = entry deposit - present value of the exit refund
Monthly cost = all-in living and service cost + added care after the transition month
Starting home equity = current home value - current mortgage balance
Terminal net equity = terminal home value - terminal debt - sale and closing cost
Home capital PV cost = starting equity - present value of terminal net equity
PV net cost = initial economic capital + PV of monthly economic flows - PV of terminal recovery
Equivalent monthly cost = PV net cost ÷ monthly annuity present-value factor
PV difference = absolute difference between the two alternatives
An immediate sale uses net sale proceeds to reduce entry funding, but the economic comparison does not pretend that selling an owned asset creates free income. A rental or vacant hold keeps current equity tied up and recovers terminal equity. The rental case alone subtracts vacancy-adjusted rent and adds rental setup cost. Ownership costs and debt payments remain in both retained-home cases.
The demonstration starts with a KRW 300 million deposit assumed to be fully refunded, a KRW 3 million all-in senior-living monthly cost, a KRW 600 million debt-free home, and a KRW 1.8 million at-home monthly living cost. It assumes an immediate home sale, a 3 percent annual discount rate, 3 percent operating-cost growth, 1 percent annual home-value growth, and added care beginning in month 61. These are calculation fixtures, not market observations.
| Metric | Move to senior living | Stay home | Interpretation |
|---|---|---|---|
| 10-year present-value net cost | KRW 513,970,822 | KRW 491,865,661 | Staying home is lower by KRW 22,105,161 |
| Equivalent monthly cost | KRW 4,953,343 | KRW 4,740,307 | Present value converted to a level monthly amount |
| Net cash needed at the start | KRW -284,000,000 | KRW 15,000,000 | A negative amount means cash remains after a home sale |
| Assumed terminal asset | KRW 300,000,000 | KRW 656,145,542 | Deposit refund versus terminal net home equity |
Under those inputs, staying home is lower by KRW 22,105,161 over ten years and by KRW 25,228,501 over five years. The senior-living ten-year present value rises to KRW 558,616,457 at an 80 percent refund and KRW 625,584,910 at a 50 percent refund. Holding every other input constant, the senior-living base monthly charge that brings the alternatives close is about KRW 2,808,410. A displayed break-even amount is not a quote and does not imply that a contract below it is safe or suitable.
If deductions or protection documents are unclear, do not rely only on a 100 percent refund. Compare 80 and 50 percent stress cases. These values measure decision exposure; they are not statutory guarantee percentages or estimates of a particular operator’s default probability.
No model can predict the exact month when support needs change. Move the care start month earlier and later. Obtain separate service descriptions because a community support package and hands-on in-home care may not be equivalent even when both are called care.
Treat home-value and rent growth as pessimistic, base, and optimistic assumptions rather than forecasts. A rental case should include vacancy, non-collection, brokerage, repairs, tax treatment, common charges, and the practical burden of managing the property.
A lower economic cost can still be infeasible when the initial deposit cannot be funded or recurring outflow exceeds retirement income. Use the funding gap and runway to schedule a sale, loan, benefit, or family contribution separately from the cost ranking.
The current Welfare of Senior Citizens Act, law ID 001777 and master sequence 259093, was checked on September 1, 2026. Article 32 places senior welfare housing within residential welfare facilities for older persons and describes rental housing accompanied by living guidance, counseling, safety management, and related convenience. Article 33-2 addresses the resident qualification and rental structure.
The current Enforcement Rule of the Welfare of Senior Citizens Act, law ID 006940 and master sequence 282119, was checked on the same date. Articles 14 and 15 contain the general age-60, independent-living, and lease-agreement framework. Individual eligibility, spouse exceptions, facility classification, and the legal effect of any security arrangement depend on current facts and documents. This calculator does not decide them.
The operating standards linked through the Enforcement Rule address contract term and purpose, deposit and monthly charges, cancellation and refunds, changes in charges and resident input, services and their costs, liability, and penalty mitigation for events such as death or serious illness. Deposit protection must be checked in the actual insurance certificate or registered right, including covered amount, valid period, and direct-claim route. Selecting a refund percentage on this page does not create or validate protection.
The timing method follows the general life-cycle cost principle in the officialNIST Handbook 135, 2025 edition: place alternatives on a common study period and discount costs and residual values to one base date. That reference supplies a transparent present-value method. It does not provide Korean tax rules, contract terms, property forecasts, care outcomes, or a recommended discount rate for an individual household.
Money paid today and returned years later cannot be used elsewhere during the contract. The model records that time-value cost even when the nominal refund is 100 percent. A partial-refund scenario also adds the unrecovered principal.
No. The stay-home alternative treats current net equity as capital tied up at the start and subtracts projected terminal net equity as a recovery. This isolates value change, debt, and closing cost instead of labeling the full property value as consumption.
Choose rent or keep. Both retain ownership cost, loan cash flow, and terminal equity. Only the rent case subtracts vacancy-adjusted rental income and includes rental setup cost.
No. The same retirement income is used only to estimate cash runway. It is not treated as a benefit earned by either housing choice, so it does not alter the economic-cost ranking.
Not by itself. The cost result should sit beside medical access, independence, family support, location, service quality, contract protection, and personal preferences. The model does not score those nonfinancial dimensions.
First obtain a written schedule for deposit recovery, included services, charge changes, exit, and the care transition, then replace every synthetic value. Next collect same-date home value, debt, annual notices, repairs, and sale or rental evidence. Test five and ten years, 50, 80, and 100 percent refund, earlier care, and pessimistic home assumptions. Use the remaining warnings as a family-meeting checklist and questions for the operator and qualified advisers. The useful outcome is not a green card on a screen; it is a documented comparison whose assumptions can be challenged before money is committed.