Security Deposit Interest Calculator

Estimate the interest a landlord owes a tenant on a held security deposit, using simple or compound interest over the length of the tenancy. Calculates in your browser.

Interest owed to tenant

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Deposit returned + interest-

Show the math

Simple interest accrues on the original deposit:

interest = deposit × rate × years

Many states and cities require landlords to pay interest on held deposits, with specific rates and compounding rules set by law. Use your jurisdiction's official rate, this is an estimate, not legal advice. All math runs locally in your browser.

What this does

A security deposit interest calculator estimates the interest a landlord owes a tenant on a held security deposit, using simple or compound interest over the length of the tenancy.

How it works

The deposit accrues interest at the rate you enter, using simple interest or annual or monthly compounding, across the months it is held.

How to use it

  1. Enter the deposit amount.
  2. Enter the statutory interest rate.
  3. Choose simple or compound interest.
  4. Read the interest owed.

Understanding your result

Many states and cities require interest on deposits with specific rates and compounding rules; others have none. Check your local statute for the exact rate that applies.

Example

$1,500 held for two years at 1% simple interest earns about $30.

Sources & methodology

Last updated .

Frequently asked questions

Do landlords have to pay interest on deposits?

In many states and cities, yes, with specific rates and compounding rules set by law. Others have no requirement. Check your local statute for the exact rate.

Simple or compound interest?

It depends on the jurisdiction. The tool offers simple interest plus annual and monthly compounding so you can match the rule that applies to you.

What rate should I use?

Use the official rate set by your state or city for the relevant year, it is often tied to a bank or treasury benchmark and can change annually.

Is this legal advice?

No, it is an estimate for planning. This tool runs entirely in your browser and stores nothing.