Interest on Rent Deposit Ontario Calculator

When you rent a property in Ontario, your landlord typically requires a security deposit to cover potential damages or unpaid rent. In Ontario, this deposit is protected by law, and you're entitled to interest on it while it's held by your landlord. This calculator helps you determine how much interest you'll earn on your Ontario rent deposit.

How Ontario Rent Deposit Interest Works

In Ontario, the Residential Tenancies Act requires landlords to pay interest on security deposits that exceed $500. The interest rate is set by the Ontario Landlord and Tenant Board and is currently 5% per annum.

Interest Calculation Formula

The interest on your rent deposit is calculated using the simple interest formula:

Interest = Principal × Rate × Time

Principal - Your security deposit amount
Rate - 5% per annum (0.05 as a decimal)
Time - The number of years the deposit is held

Key Points to Remember

The interest calculation starts from the date the deposit is received by the landlord.
Interest is paid monthly, quarterly, or annually, depending on the landlord's preference.
You must receive a written statement from your landlord showing the interest calculation.
If your deposit is returned within 30 days of moving out, you won't receive any interest.

When You Get Your Deposit Back

When you move out, your landlord must return your deposit within 30 days. If the deposit is returned late, you may be entitled to additional interest. The Ontario Landlord and Tenant Board has a specific formula for calculating late returns:

Late Return Interest Formula

If the deposit is returned after 30 days but before 90 days:

Late Interest = (Principal + Interest) × 0.05 × (Days Over 30 / 365)

If the deposit is returned after 90 days:

Late Interest = (Principal + Interest) × 0.10 × (Days Over 90 / 365)

How to Use This Calculator

Our calculator makes it easy to determine how much interest you'll earn on your Ontario rent deposit. Here's how to use it:

Enter the amount of your security deposit in the "Deposit Amount" field.
Select the number of years you expect your deposit to be held by your landlord.
Click the "Calculate" button to see your estimated interest.
Review the results and the interest breakdown chart.

Note: This calculator provides an estimate. The actual amount of interest you receive may vary based on your landlord's specific practices and the timing of your deposit return.

Example Calculation

Let's say you have a security deposit of $1,500 in Ontario. You expect your landlord to hold the deposit for 2 years. Here's how the calculation works:

Example Calculation

Interest = $1,500 × 5% × 2 years

Interest = $1,500 × 0.05 × 2

Interest = $150

In this example, you would earn $150 in interest on your $1,500 security deposit over 2 years.

Frequently Asked Questions

How is interest calculated on my Ontario rent deposit?: Interest is calculated using the simple interest formula: Principal × Rate × Time. The rate is currently 5% per annum as set by the Ontario Landlord and Tenant Board.
When do I start earning interest on my deposit?: You start earning interest from the date your landlord receives your security deposit. The interest calculation begins immediately.
What if my landlord returns my deposit late?: If your landlord returns your deposit after 30 days but before 90 days, you may be entitled to additional interest at 5% per annum. If returned after 90 days, the additional interest rate increases to 10% per annum.
Do I need to do anything to receive interest on my deposit?: No, you don't need to take any action. Your landlord is legally required to pay interest on your security deposit as long as it's held for more than 30 days.
What if my deposit is less than $500?: If your security deposit is $500 or less, you won't receive any interest on it. The interest requirement only applies to deposits exceeding $500.