{ "slug": "security-deposit-interest-calculator", "title": "Security Deposit Interest Calculator — What Your Landlord Owes (2026)", "heading": "Security Deposit Interest Calculator", "category": "financial", "url": "https://www.revenuelab.fyi/toolbox/security-deposit-interest-calculator", "summary": "Many states and cities require landlords to pay interest on held security deposits. Work out what you're owed back.", "description": "If you rent in a jurisdiction with a deposit-interest rule — Chicago, New York City, New Jersey, Connecticut, Massachusetts, Minnesota, and others — your landlord holds your money in an interest-bearing account and owes you that interest at move-out or annually. This calculator compounds the rate across your tenancy and shows the total return, plus any statutory penalty for a landlord who never paid it.", "formula": "Compounded: total = deposit × (1 + rate)^(months ÷ 12). Simple: total = deposit × (1 + rate × months ÷ 12). Interest owed = total − deposit. Penalty = deposit × statutory multiple, where the local ordinance provides one.", "dateModified": "2026-08-31", "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=security-deposit-interest-calculator", "inputs": [ { "id": "deposit", "label": "Security deposit held", "kind": "number", "hint": null, "default": 2400, "unit": "$", "min": 0, "max": null }, { "id": "rate", "label": "Annual interest rate required", "kind": "number", "hint": "Set by state or city ordinance — often tied to a bank savings rate and republished each year.", "default": 1.5, "unit": "%", "min": 0, "max": 15 }, { "id": "months", "label": "Months of tenancy", "kind": "number", "hint": null, "default": 30, "unit": null, "min": 0, "max": 480 }, { "id": "compounding", "label": "Compounding", "kind": "select", "hint": null, "default": "annual", "options": [ { "value": "simple", "label": "Simple interest" }, { "value": "annual", "label": "Compounded annually" } ] }, { "id": "penaltyMultiple", "label": "Statutory penalty multiple if unpaid", "kind": "number", "hint": "Chicago, for example, historically applied a multiple of the deposit. Enter 0 to skip.", "default": 0, "unit": null, "min": 0, "max": 5 } ], "outputs": [ { "id": "interest", "label": "Interest owed to you", "format": "currency", "hint": null, "primary": true }, { "id": "total", "label": "Deposit plus interest", "format": "currency", "hint": null, "primary": false }, { "id": "perYear", "label": "Average interest per year", "format": "currency", "hint": null, "primary": false }, { "id": "penalty", "label": "Statutory penalty if unpaid", "format": "currency", "hint": null, "primary": false }, { "id": "claim", "label": "Total potential claim", "format": "currency", "hint": null, "primary": false } ], "worked_example": { "inputs": [ "Security deposit held: 2400 $", "Annual interest rate required: 1.5 %", "Months of tenancy: 30", "Compounding: Compounded annually", "Statutory penalty multiple if unpaid: 0" ], "outputs": [ "Interest owed to you: $91.02", "Deposit plus interest: $2,491.02", "Average interest per year: $36.41", "Statutory penalty if unpaid: $0.00", "Total potential claim: $91.02" ] }, "how_to": { "title": "How to use this", "steps": [ "Enter security deposit held ($).", "Enter annual interest rate required (%) — Set by state or city ordinance — often tied to a bank savings rate and republished each year..", "Enter months of tenancy.", "Enter compounding.", "Enter statutory penalty multiple if unpaid — Chicago, for example, historically applied a multiple of the deposit. Enter 0 to skip..", "Read your interest owed to you on the right — it updates as you type.", "Hit Share to keep the scenario or send it to someone." ] }, "scenarios": [ { "name": "Two-year lease", "values": { "deposit": 2400, "rate": 1.5, "months": 24 } }, { "name": "Long tenancy", "values": { "deposit": 1800, "rate": 1, "months": 84 } }, { "name": "Unpaid, penalty city", "values": { "deposit": 2000, "rate": 1.5, "months": 36, "penaltyMultiple": 2 } } ], "limitations": [ "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.", "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.", "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant." ], "faq": [ { "q": "Which states require interest on security deposits?", "a": "Rules vary widely, but jurisdictions with deposit-interest requirements have included Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Pennsylvania (over a threshold and tenancy length), Rhode Island, and cities such as Chicago and San Francisco. Rates are usually republished annually, so check your city or state's current figure before filing a claim." }, { "q": "When does a landlord have to pay the interest?", "a": "Typically either annually during the tenancy or as a credit against rent, or in full when the deposit is returned after move-out. Deadlines for returning the deposit itself are commonly 14 to 45 days depending on the state." }, { "q": "What if my landlord never paid deposit interest?", "a": "Send a written demand citing the ordinance and the amount, keep a copy, and give a short deadline. If it's ignored, small claims court is the normal route — and in some cities the statute awards multiple damages plus attorney fees against a landlord who withheld it." }, { "q": "Is security deposit interest taxable?", "a": "Yes, interest paid to you is generally taxable interest income in the year you receive it, even though it's usually a small amount." } ], "related": [ "https://www.revenuelab.fyi/toolbox/pto-payout-calculator", "https://www.revenuelab.fyi/toolbox/severance-pay-calculator", "https://www.revenuelab.fyi/toolbox/simple-interest" ], "license": "CC-BY-4.0", "citation": "RevenueLab — Security Deposit Interest Calculator — What Your Landlord Owes (2026) (https://www.revenuelab.fyi/toolbox/security-deposit-interest-calculator)" }