Security Deposit Interest Calculator
Calculate the appropriate security deposit amount based on state limits, and compute interest owed on deposits held by landlords.
Results
Visualization
How It Works
Several states and cities require landlords to hold security deposits in interest-bearing accounts and pay that interest to tenants annually or at move-out. Deposit limits vary by state from 1 to 3 months of rent, with some states having no limit. Knowing your rights can mean the difference between getting a full refund and losing hundreds of dollars.
The Formula
Variables
- Deposit — Security deposit amount held by the landlord
- Interest Rate — Required annual interest rate (set by state or city law)
- State Max — Maximum deposit allowed under state law, expressed as months of rent
Worked Example
$3,000 deposit on $2,000/month rent held for 24 months at 2% required interest. Interest earned = $3,000 * ((1.02)^2 - 1) = $121.20. Total refund due = $3,121.20. State max (2 months) = $4,000, so deposit is within limits.
Practical Tips
- Check your state's security deposit statute — many require interest payments that landlords ignore.
- States requiring deposit interest include Illinois, Maryland, Massachusetts, New Jersey, New York, Connecticut, and others.
- Document everything with photos at move-in and move-out to protect your full deposit.
- Some states require landlords to provide an itemized statement within 14-30 days of move-out.
- If your landlord fails to return the deposit on time, many states allow you to recover 2-3x the deposit amount in court.
Frequently Asked Questions
Which states require interest on security deposits?
States requiring interest include Connecticut, Florida (for deposits held 12+ months), Illinois (Chicago), Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York (some cities), North Dakota, Pennsylvania (after 2 years), and Virginia. Check your specific state and city.
What interest rate applies to my deposit?
Rates vary. Some states specify a fixed rate (e.g., Maryland: 1.5%), others tie it to the prevailing savings rate or U.S. Treasury rate. Chicago requires the rate set annually by the city comptroller. Check your local statute.
What is the maximum security deposit by state?
Common limits: California (1 month unfurnished, 2 furnished), New York (1 month), Massachusetts (1 month), Illinois (no state limit but Chicago limits to 1.5 months). Several states have no cap — Alabama, Colorado, Missouri, Ohio, among others.
What if my landlord does not return my deposit?
Send a written demand letter. If unresolved, file in small claims court. Many states allow 2-3x damages for wrongful withholding. Keep all documentation — lease, photos, move-in checklist, correspondence.
Can my landlord deduct from the deposit for normal wear and tear?
No. Landlords can only deduct for damage beyond normal wear and tear, and unpaid rent. Faded paint, minor carpet wear, and small nail holes are generally considered normal use.