Korea Rental Yield Calculator (Monthly Rent)
Enter the purchase price, deposit, and monthly rent to calculate pre-tax and after-tax rental yield based on your net invested capital, including acquisition tax. If rental income tax applies, this calculator reflects it on a separate-taxation (분리과세, 14%) basis only — it does not compare against comprehensive taxation.
💡 Want to calculate acquisition tax on its own in more detail? → Acquisition Tax Calculator
Legal Basis
- Basis: Acquisition tax — see the Acquisition Tax Calculator for the legal basis (this calculator reuses the same logic).
- Basis: Income Tax Act, Article 64-2 (special taxation for rental housing income — 14% separate tax rate, necessary expense ratio, basic deduction), Article 14(3)(7) (₩20 million/year cap for choosing separate taxation), Article 12(2)(b) (one-home exemption, ₩1.2 billion standard assessed value threshold) — View full statute
- Basis: Local Tax Act, Article 92 (individual local income tax on comprehensive income, 10% of the income tax) — View full statute
Frequently Asked Questions
Why is acquisition tax included in the invested capital?
Acquisition tax, local education tax, and Special Rural Development Tax are real cash outlays at the time of purchase. Including them gives a yield based on how much of your own money is actually tied up in this property. Leaving acquisition tax out would make the yield look better than it really is.
Why does the deposit reduce invested capital instead of counting as income?
The deposit is money you'll eventually have to return to the tenant, so it isn't your income — it's financing that reduces how much of your own capital you need. That's why it's subtracted from the purchase price, while acquisition tax is added, to calculate the amount of your own money actually tied up.
Why is my rental income tax-exempt (or taxable)?
If your household owns only one home nationwide and its standard assessed value is ₩1.2 billion or less, the rental income is tax-exempt (Income Tax Act Article 12(2)(b)). If you own 2 or more homes, or your one home exceeds ₩1.2 billion in standard assessed value, the income is taxable.
How much does registering as a rental business reduce my tax?
Unregistered gets a 50% necessary expense ratio and up to ₩2 million basic deduction. Registered rental housing gets a more favorable 60% expense ratio and up to ₩4 million basic deduction (the deduction only applies if your other comprehensive income excluding this rental income is ₩20 million or less). Registration does come with obligations, though — a 5% cap on rent increases and a mandatory rental period.
Does this work accurately for officetels?
This calculator assumes the officetel is rented out as a de facto residence and applies rental income tax rules (14% separate taxation, etc.) accordingly. If it's actually rented for business use (e.g., as an office), it would be classified as ordinary business income instead, and the result may differ.
I own 3+ homes — why doesn't the deposit-related tax show up?
If you own 3 or more homes and your combined deposits exceed ₩300 million, an additional imputed rental income tax also applies to the deposits. However, this determination is based on the combined deposits across every home you own — this calculator only knows the deposit for the one property you're calculating, so it cannot compute this. If you select 3+ homes, the monthly-rent portion of the tax is still calculated correctly, but a notice will indicate that imputed rental income was not included.
What happens if my annual rent income exceeds ₩20 million?
If your total annual housing rental revenue exceeds ₩20 million, you can no longer choose separate taxation (Income Tax Act Article 14(3)(7)) — mandatory comprehensive taxation (combined with your other income at progressive rates) applies instead. This calculator does not compute comprehensive-taxation amounts, so it will only display a notice with no tax figure in that case. Even if your annual revenue comes out under ₩20 million, check separately whether the combined total across any other rental properties you own exceeds that threshold.