Rent Deposit Interest Calculator
In Ontario, your landlord owes you interest on your rent deposit every year — at the province’s rent increase guideline rate. Enter the deposit and the date you paid it, and this shows what has built up, anniversary by anniversary.
Your estimate updates as you change the numbers — no button to press. Interest is figured at Ontario's rent increase guideline rate for each year, the way section 106 of the Residential Tenancies Act sets it. The dates start one year back from today; change them to match your tenancy.
Interest built up on your deposit
Enter your deposit and the date you paid it, and this updates right away.
| Interest due | Guideline rate | Interest |
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Each full year is charged at the guideline rate for the year the payment falls due — 2.1% for a payment due in 2026, 1.9% for 2027. A part-year at the end is pro-rated by days and marked * — an estimate, because interest is payable on each anniversary. If your landlord applied interest as a deposit top-up under s.106(7), the deposit itself grew: re-run with the topped-up amount.
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This calculator also has its own page: Open the Rent Deposit Interest Calculator →
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How rent deposit interest works in Ontario
When you pay a rent deposit (usually last month’s rent), your landlord holds it for as long as you live there — and Ontario law says that money works for you while it sits there. Section 106 of the Residential Tenancies Act requires the landlord to pay you interest on the deposit every year, at the province’s rent increase guideline rate for the year each payment falls due.
Two wrinkles matter. If your rent has lawfully gone up, the landlord may keep the interest and apply it as a top-up so the deposit still equals one month’s rent at the new rate (s.106(7)). And if a payment is missed, the interest is still owed — s.106(9) even lets a tenant deduct unpaid interest from a later rent payment.
For the full walk-through, read Interest on Your Rent Deposit: The Ontario Rule Most Tenants (and Some Landlords) Miss — and if you are renting out a home or looking for one, see how I help on the Rent page.
A deposit question on a real tenancy?
Whether you are a tenant checking what your deposit has earned, or a landlord who wants the deposit and its interest handled cleanly from day one, send me the details and I will walk through it with you.
Disclaimer: This calculator is an estimate tool, not legal advice. It applies the Ontario rent increase guideline for each year to the deposit amount you enter, with no top-ups or payments in between. The Landlord and Tenant Board decides exact amounts in a dispute.
Frequently asked questions about rent deposit interest
Who owes interest on a rent deposit in Ontario?
The landlord does. Under section 106(6) of the Residential Tenancies Act, a landlord must pay the tenant interest on the rent deposit every year, at the provincial rent increase guideline rate in effect when each payment becomes due. It is owed whether or not the tenant asks for it.
Which interest rate applies to my deposit?
The rate for each year is the Ontario rent increase guideline for the calendar year in which that year’s interest payment falls due — not the rate from when you paid the deposit. For a payment due in 2026 the rate is 2.1%; for 2027 it is 1.9%. This calculator applies each year’s own rate to that year’s anniversary.
What if my landlord never paid the interest?
The interest is still owed, and it keeps accruing each year the deposit is held. Tenants can ask for it in writing, and if a landlord misses a payment, section 106(9) lets the tenant deduct the unpaid interest from a later rent payment. The Landlord and Tenant Board decides exact amounts where there is a dispute.
What is the deposit top-up rule?
Under section 106(7), when the rent has lawfully increased, the landlord may keep the interest and apply it as a top-up so the deposit matches the new rent, instead of paying it to the tenant. If that happened, your deposit itself is bigger — re-run this calculator with the topped-up deposit amount to see the interest on it.
Can I deduct unpaid deposit interest from my rent?
Yes, in the situation section 106(9) covers: if the landlord did not pay interest that was due, the tenant may deduct that unpaid interest from a subsequent rent payment. Keep records of what was due and unpaid, and get advice before deducting if the amounts are disputed.
Does interest apply to a key deposit or other refundable deposits?
No. Interest under section 106 applies to the rent deposit (last month’s rent). A key deposit is refundable at cost and is not a rent deposit, so it does not earn this interest — the same is true of other refundable charges held at cost.
