Rent To Interest(RTI) Calculator
RTI(Rent to Interest) refers to the ratio of annual rental income to annual interest expense, which is to determine the adequacy of loans by landlords during the real estate rental business loan review. In principle, RTI is calculated based on individual rental items subject to rental business.
  • Bullet Repayment : The principal will be repaid in full at maturity and only interest will be paid before then.
  • Equal Principal Payment : Repay the principal at the same rate every month. Interest is paid as much as the remaining balance, so the principal is reduced as much as the principal is repaid. That is, the payment amount decreases over time.
  • Equal Amortization : The total interest and principal are divided by the period and the same amount is paid equally every month.
According to the guidelines of the Federation of Banks, only 1.25 times more housing and 1.5 times more non-housing are required to handle new loans.
This guideline is mandatory for commercial banks in the financial sector.
Annual Rental Income 
10,000 Won
Loan Amount
10,000 Won
Other Debt
10,000 Won
Loan Period
months
Grace Period
months
Interest Rate
%
Debt Interest Rate
%
Calculation Result
Notice

Although this calculation is done in the same way as the bank, it is a very simplified calculation compared to the many factors that are considered in the actual handling of loans in the bank. Actual loans may result in different results depending on the bylaws and products handled by each financial company, so please use them only as a reference.

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