Free tool
Security deposit interest calculator
Work out the interest a landlord owes on a held deposit. Enter the amount, the annual rate, and how long it was held. Some places require deposit interest at a set rate, and many require none.
Interest owed
$37.80
Total to return: $1,837.80. Simple interest at 2.1% for 1 year.
Ontario has no damage deposit. The last-month-rent deposit earns interest at the annual rent-increase guideline, 2.1% for 2026, paid yearly. Ontario LTB. This is a general estimate, not legal advice. Rates last reviewed July 8, 2026; they change yearly, so confirm the current figure.
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Get started freeCommon questions
Do landlords have to pay interest on a security deposit?
It depends on where the unit is. Some provinces and some US states and cities require a landlord to pay interest on a held deposit at a set rate, while many places require none. Ontario, for example, pays interest on the last-month-rent deposit at the annual rent-increase guideline. Always check your local rule.
How is deposit interest calculated?
The common approach is simple interest: multiply the deposit by the annual rate and by the number of years it was held. This calculator uses simple interest. Some rules compound or set the rate each year, so confirm the exact method for your jurisdiction.
When is the interest paid?
This also varies. Some places require interest to be paid annually, others when the deposit is returned at the end of the tenancy. Check your local residential tenancy rules.
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