Several states require landlords to pay tenants interest on security deposits, and even where it's optional, you may owe the math at move-out. Enter the deposit, rate, and holding period to see the daily-compounded total, alongside your state's deposit cap, return deadline, and interest requirement. Free, instant, and no email required.
As of this writing, these states (plus D.C.) have a statutory interest requirement, many of them conditional:Connecticut, Delaware, District of Columbia, Florida (only if the deposit is held in an interest-bearing account), Georgia (if in escrow or secured by surety bond), Illinois (landlords with 25+ units holding the deposit more than 6 months), Iowa (interest owed after five years), Maryland (3% simple interest on deposits of $50+), Massachusetts (5% or the bank rate), Minnesota (1% simple interest), New Hampshire, New Jersey, New Mexico (if the deposit exceeds one month's rent on a lease of one year or more), New York (landlords with six or more units), North Dakota (interest owed after 9 months), Ohio (5% if the deposit exceeds one month's rent and tenancy is six months or longer), and Pennsylvania (deposits over $100 held longer than two years). Pick your state in the calculator to see the exact rule, statute citation, and deadline. Cities can add their own rules (e.g., Chicago, Seattle, and several California cities), so always check local ordinances too.
This calculator compounds daily, the way an interest-bearing bank account accrues: the annual rate is divided by 365 to get a daily rate, and the balance grows by that rate each day the deposit is held. Total = Deposit × (1 + rate/365)^days. Example: $2,000 at 2% held for one year grows to $2,040.40 to $40.40 in interest. Some statutes specify *simple* interest instead (Maryland and Minnesota, for example); when in doubt, follow the statute's method and rate.
Several states dictate where the money sits: Massachusetts and New Hampshire require an in-state bank account, Connecticut a Connecticut financial institution, Delaware and Georgia an escrow account (or surety bond in Georgia), New Jersey a New Jersey bank or money market fund, and D.C. an interest-bearing account based in the District. Florida gives landlords a choice, non-interest account, interest-bearing account, or surety bond, and the choice determines whether interest is owed. Many states also require you to disclose the depository institution to the tenant in writing.
Return deadlines range from 10 days (Montana, with no deductions) to 60 days (Alabama, Arkansas, West Virginia), with most states clustering around 14 to 30 days, often with different clocks depending on whether you take deductions or have the tenant's forwarding address. The calculator's state panel shows your state's deadline next to the interest math. Missing the deadline can forfeit your right to deduct, and in many states triggers multiple damages.
Almost everywhere: unpaid rent and damage beyond normal wear and tear. Many states add unpaid utilities, cleaning, lease violations, re-renting costs, or court costs, and a few are stricter (Washington limits deductions to items on the move-in checklist). Deductions generally must be itemized in writing within the return deadline. Use the Security Deposit Return Letter Generator to produce a compliant itemized disposition letter.
Yes, 100% free, no account, no email, unlimited use. It's part of Advanced Collection Bureau's free toolkit for landlords and property managers.
Sixteen states plus D.C. have some statutory interest requirement, several of them conditional on portfolio size, deposit amount, or how long the deposit is held. Select your state in the calculator to see the rule and statute citation.
Daily: the annual rate is divided by 365 and applied each day the deposit is held: Total = Deposit × (1 + rate/365)^days. If your statute mandates simple interest, use the statute's method for the legally required amount.
The rate your deposit account actually pays, or your state's mandated rate, for example, 5% (or the bank rate) in Massachusetts, 3% in Maryland, 1% in Minnesota. Some cities publish their own annual rates.
Yes. Chicago, New York City, Seattle, and several California cities (among others) layer local interest or handling rules on top of state law. Always check municipal ordinances for the property's location.
It varies from 10 to 60 days depending on the state, deductions, and notice, the calculator shows your state's deadline. Pair it with the Security Deposit Return Letter Generator for the itemized letter most states require.
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