Many states and cities legally require landlords to pay tenants interest on security deposits held for an extended period.
How it works
Deposit amount times the required annual interest rate, times years held, gives the interest owed.
What this does not include
Interest rates and requirements vary enormously by state and city — this calculator applies whatever rate is entered rather than a specific jurisdiction’s mandated rate, since there’s no single national requirement.
How to use this calculator
- Enter the deposit amount, required annual interest rate, and years held.
Frequently asked questions
Do all states require interest on security deposits?
No — only some states and cities have this requirement, and the specific rate (sometimes tied to a bank benchmark rate) varies significantly where it does apply.
When is deposit interest typically paid?
Often annually or at lease renewal in jurisdictions with ongoing tenancies, and always at move-out when the deposit is returned (minus any legitimate deductions).
What happens if a landlord doesn’t pay required interest?
Consequences vary by jurisdiction but can include penalties, forfeiting the right to retain any portion of the deposit, or other legal remedies available to the tenant.
