Ontario tool

    Rent Deposit Interest Calculator

    Work out the interest an Ontario landlord owes on a last-month's-rent deposit at the 2026 guideline rate, plus any top-up when the rent has gone up.

    2026 interest rate
    2.1%
    Paid
    Annually
    Max deposit
    One month's rent
    On increase
    Top-up creditable
    $
    $

    Enter the rent deposit to see the interest owed.

    General information only, not legal advice. Ontario landlords owe interest on a last-month's-rent deposit each year at the rent increase guideline, 2.1% for 2026. Confirm the current guideline and the rules with the Landlord and Tenant Board.

    How rent deposit interest works in Ontario

    In Ontario a landlord can collect a rent deposit of up to one month's rent, used as the last month's rent of the tenancy. The Residential Tenancies Act requires the landlord to pay the tenant interest on that deposit every year, at the same percentage as the annual rent increase guideline. For 2026 the guideline, and therefore the deposit interest rate, is 2.1%.

    Topping up the deposit

    Because the deposit is meant to equal the last month's rent, the landlord can keep it level with the current rent. When rent increases, the landlord may ask the tenant to top up the deposit to the new amount. The interest owed for the year is credited against that top-up, so in practice the two are usually settled together. The calculator shows the interest, the top-up, and the net of the two.

    Keep the record

    Deposit interest is the kind of small recurring obligation that is easy to forget and awkward to reconstruct years later. Tracking the deposit, each year's interest, and any top-up alongside the lease keeps it defensible. See how Habyn handles lease management and rent tracking. For the increase itself, use the Ontario rent increase calculator.

    Frequently asked questions

    How much interest is owed on a rent deposit in Ontario?

    Interest on a last-month's-rent deposit is owed annually at the rent increase guideline. For 2026 that rate is 2.1%. On an $1,800 deposit held for a year, that is $37.80.

    When does deposit interest have to be paid?

    Interest is owed once a year, on the anniversary of the deposit. A landlord can pay it directly or, if rent has increased, credit it against the amount needed to top the deposit up to the new rent.

    Does the deposit have to be topped up when rent increases?

    A last-month's-rent deposit can be kept equal to the current rent. When rent rises, the landlord may ask the tenant to top up the deposit, and the interest owed is credited against that top-up.

    What rate is used for the interest?

    The same percentage as the annual rent increase guideline. It changes each year. For 2026 it is 2.1%; confirm the current figure with the Landlord and Tenant Board.

    Looking for more? See all free Habyn tools.