Enter the deposit, the rate agreed in your rent agreement and the tenancy period to see the interest accrued and the total refundable amount — handy at renewal or move-out to settle cleanly and avoid deposit disputes. Free, no login, prints to PDF.
Nothing you type is stored — it stays in your browser.
Use the rate in your rent agreement. There is no universal statutory rate in India.
Simple is the common default if the agreement is silent. Use compound only if your agreement says so.
Your result
Total refundable
—
deposit + interest, before lawful deductions
Indicative only — not legal advice. Interest is payable only if your agreement or applicable state rules provide for it.
This calculator gives an indicative figure for planning only and is not legal or financial advice. India has no single statutory interest rate on rental security deposits; whether interest is payable, and at what rate and method, depends on the signed rent agreement and any applicable state tenancy or rent-control rules, including the Model Tenancy Act where a state has adopted it. Confirm your position with a legal advisor before settling a deposit.
How deposit interest works
Unlike a bank deposit, a rental security deposit does not earn interest by default in India. There is no single nationwide rate. Whether any interest is due — and at what rate — comes down to what the rent agreement says and whether your state's tenancy or rent-control rules require it. Many standard 11-month agreements provide none; some long leases and certain state frameworks do. Check the agreement first.
Simple interest is charged only on the original deposit: Interest = Deposit × Annual rate × Time in years. A ₹2,00,000 deposit at 6% for 2 years accrues ₹24,000, so ₹2,24,000 is refundable before deductions. This is the common default when an agreement is silent on method.
Compound interest is charged on the deposit plus interest already accrued, using Amount = Deposit × (1 + rate)years. Over multi-year tenancies it grows faster than simple interest. Only use it if your agreement specifically provides for compounding.
The refundable figure here is before deductions. A landlord may lawfully deduct unpaid rent, unpaid utility bills and the cost of damage beyond normal wear and tear — not ordinary ageing of paint or fittings. A documented move-out inventory protects both sides.
In states that have adopted the Model Tenancy Act, the deposit itself is capped at two months' rent for residential and six months' rent for commercial property. States that have not adopted it follow their own practice, where deposits have traditionally run higher. The cap concerns the deposit amount, not the interest rate.
| Deposit | Rate | Period | Interest | Refundable |
|---|---|---|---|---|
| ₹1,00,000 | 6% | 1 yr | ₹6,000 | ₹1,06,000 |
| ₹2,00,000 | 6% | 2 yr | ₹24,000 | ₹2,24,000 |
| ₹5,00,000 | 8% | 3 yr | ₹1,20,000 | ₹6,20,000 |
Illustrative simple-interest figures. Interest applies only where the agreement or applicable state rules provide for it.
From calculator to clean settlement
Most deposit fights start because no one wrote down the condition at move-in or tracked what was agreed. EstateDeck records each tenant's deposit and any agreed interest, runs a move-in and move-out checklist with condition photos and meter readings, and produces a settlement statement that shows the deposit, accrued interest and every lawful deduction — so the refund is defensible, not debatable.
Photo
condition record at move-in
Deposit
+ interest tracked per tenant
Meter
readings logged at exit
Settle
statement with deductions
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Deposit interest, answered
There's no single nationwide rule. Whether interest is payable, and at what rate, depends on the rent agreement and any applicable state tenancy or rent-control rules. Many agreements provide none; some, and certain state frameworks, do. Check your signed agreement and local rules.
Simple interest = Deposit × Annual rate × Time in years. A ₹2,00,000 deposit at 6% for 2 years accrues ₹24,000, so ₹2,24,000 is refundable before deductions.
Simple interest is charged only on the original deposit each year. Compound interest is charged on the deposit plus interest already accrued, so it grows faster over multi-year tenancies. Which applies depends on the agreement; if silent, simple is the common default.
In states that have adopted the Model Tenancy Act, the deposit is capped at two months' rent for residential and six months' rent for commercial property. States that haven't adopted it follow their own practice. Check the rule in your state.
Where payable, interest is normally settled at lease renewal or move-out, when the deposit is refunded after deducting lawful amounts for unpaid rent or damage beyond normal wear and tear. A clear record of the deposit and accrued interest avoids disputes.
No — it's free and runs in your browser. If you run EstateDeck, deposits and any agreed interest are tracked per tenant with the move-in/move-out settlement workflow, so the refundable figure is always on record.
EstateDeck tracks each deposit, any agreed interest and a photo-backed move-out checklist — so every refund is defensible.
