Security Deposit Interest Calculator
Find the interest owed on a security deposit.
Results update as you type.
How it works
In many jurisdictions, landlords must pay tenants interest on their security deposit, and this calculator estimates how much. You enter the deposit amount, the annual interest rate, and the number of years the deposit was held, and it returns the interest owed and the total amount that should be returned. The calculation uses simple interest, multiplying the deposit by the rate and the years, then adding it to the original deposit. Security deposit interest laws vary widely: some states and cities require landlords to hold deposits in interest-bearing accounts and pay the tenant the interest, sometimes at a rate set by law or tied to a bank index, while many other places have no such requirement at all. Where interest is required, the rules specify the rate, whether it compounds, when it must be paid, and any exemptions, such as for small landlords or short tenancies. This calculator provides a straightforward simple-interest estimate, useful for a tenant checking what they may be owed or a landlord estimating the obligation, but you should verify your local law for the exact required rate and method, which may differ from a simple calculation. If your jurisdiction mandates compound interest or a specific published rate, adjust accordingly. The interest is typically returned along with the deposit when the tenancy ends, minus any lawful deductions. Enter the deposit, rate, and years to estimate the interest owed.
Interest = deposit × annual rate × years (simple interest)
This uses simple interest: the deposit multiplied by the annual interest rate and the number of years held. Adding that interest to the original deposit gives the total the landlord should return. Some jurisdictions require compound interest or a specific rate, so check local rules.
Source:Simple interest
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter security deposit, annual interest rate and years held.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Interest owed updates instantly as you type — no button to press.
Frequently asked questions
Do landlords have to pay interest on security deposits?
It depends on your location. Some states and cities legally require landlords to pay tenants interest on security deposits, often mandating an interest-bearing account and a specific rate, while many other jurisdictions have no such requirement. Check your local and state laws to determine whether interest is owed and at what rate in your area.
How is security deposit interest calculated?
This calculator uses simple interest: the deposit multiplied by the annual interest rate and the number of years held. For a $2,000 deposit at 1.5 percent over two years, that is $60. Some jurisdictions instead require compound interest or a rate set annually, so verify your local rules for the exact method that applies.
What rate applies to security deposit interest?
Where interest is required, the rate is usually set by law, sometimes as a fixed percentage and sometimes tied to a bank savings index or set annually by a housing authority. Because the required rate varies by jurisdiction and can change yearly, check the current official rate for your area rather than assuming a fixed number.
When is the interest paid to the tenant?
In most places that require it, security deposit interest is paid when the tenancy ends, returned together with the deposit itself minus any lawful deductions for damage or unpaid rent. Some jurisdictions require interest to be paid annually during the tenancy. The exact timing is set by local law, so review the rules where you rent.
Does this calculator reflect my exact legal obligation?
It provides a simple-interest estimate for general guidance, but it may not match your jurisdiction's exact requirements, which can mandate compound interest, a specific legally set rate, or particular timing. Use it as a starting estimate, then confirm the precise rate and method with your local tenant-landlord law or a housing authority for accuracy.