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Security Deposit Interest Calculator – Find Out What You're Owed

If you rent a home in the US, your landlord might legally owe you money for holding your funds. Use this security deposit interest calculator to find out exactly how much cash you should get back. Landlords in many states are legally required to pay interest on security deposits when a lease ends.

What Is Security Deposit Interest?

When you sign a lease, the property owner places your money into a security deposit escrow account — a separate bank account used just to hold funds safely. Over time, that money earns accrued interest on deposit. Depending on state landlord-tenant law, the tenant legally owns that extra money. The property owner cannot pocket those bank earnings.

Do Landlords Have to Pay Interest on Security Deposits?

You might be wondering, do landlords have to pay interest on security deposits? The answer depends entirely on where you rent — this is a strict state-by-state rule. More than 15 states legally mandate a landlord interest payment. Some major cities including Chicago, New York, and San Francisco even set their own local percentages. Understanding your tenant rights security deposit rules ensures you get paid fairly at lease termination.

Security Deposit Interest Formula

Use the simple interest formula: Interest = Principal × Rate × Time. For example, a $1,500 deposit at a 2% rental deposit interest rate held for 1 year = $30 owed. Our security deposit interest calculator handles this math automatically.

How to Use This Security Deposit Interest Calculator

Step 1 – Enter Your Deposit Amount

Type in the original deposit amount you paid to your landlord before moving in.

Step 2 – Select Your State

Choose your location so the tool applies the correct security deposit laws by state.

Step 3 – Enter Years Held

Input how many years the landlord held your deposit. Accurate numbers guarantee a correct final amount.

Step 4 – Hit Calculate

Click the button to instantly see your initial cash plus the extra interest owed to you.

Security Deposit Interest Rates by State (2025–2026)

Finding the correct security deposit interest rate 2025–2026 is crucial for accurate math. Keep in mind that interest on security deposit by state laws change annually — always verify with your local housing authority.

States That Require Interest Payments

Connecticut: 0.52% annually. Massachusetts: 5% or actual rate. Maryland: 1-yr Treasury rate or 1.5%. New Jersey: Actual interest earned. New York: Actual earned minus 1% fee. Illinois: 0.01% annually. Minnesota: 1% simple interest. Florida: 75% of earned interest. California (select cities): Up to 5% annually.

Frequently Asked Questions

What states require landlords to pay interest on security deposits? +
More than 15 states including New York, Massachusetts, New Jersey, and Illinois mandate these payments. Check your local housing guidelines to confirm your tenant security deposit rights before moving out.
How long does a landlord have to return a security deposit with interest? +
The deposit return timeline usually ranges from 14 to 45 days after you hand over the keys. Some states require the extra money to be paid out annually rather than waiting until the final move-out day.
What happens if a landlord does not pay interest on a security deposit? +
You can write a formal demand letter showing the missing amount using the security deposit interest formula simple interest calculation. If they refuse, you may file a claim in small claims court for the owed money plus penalty fees.
Do landlords have to pay interest on security deposits in all states? +
No. Security deposit laws by state vary widely. States like Massachusetts and Connecticut require it by law. Most southern and midwestern states do not. Renters in unregulated states only receive their original principal deposit back at lease termination.
Is there a cap on security deposit amounts? +
Yes, in many states. Most cap deposits at 1–2 months' rent. The security deposit escrow account must hold this money separately from the landlord's personal funds per your state landlord-tenant law.
How do I calculate interest on my security deposit? +
Use the simple interest formula: Interest = Principal × Rate × Time. Example: $2,000 at a 2% rental deposit interest rate for 2 years = $2,000 × 0.02 × 2 = $80 owed. Our calculator does this automatically using your state's exact legal rate.

Final Thoughts: Get Every Dollar You Are Owed

Knowing the correct security deposit interest rate by state and using the right simple interest formula ensures you walk away from your lease termination with every dollar you legally deserve. Use our security deposit interest calculator any time you need a fast, accurate answer — because your tenant rights should never be left to guesswork.