Interest on last month's rent in Ontario
Enter your deposit and each rent change to see the interest owed for every year, with top-ups counted. The guideline rate is 2.1% for 2026 and 1.9% for 2027.
Calculator
Fill in the date and amount. Or open an example: $1,500 paid March 1, 2022, rent raised twice.
Interest still owed
$0.00
Year by year
Rent from: the rent you pay on the date shown, even if it changed earlier; a blank box keeps the rent above. Extra you paid in: money you paid to top up the deposit, not interest the landlord kept.
| Year ending | Rate | Rent from | Extra you paid in | Interest | What the landlord did | Still owed | Deposit after |
|---|
Names and address for the letter
Earlier copies
How the interest works
Section 106 of the Residential Tenancies Act, 2006 makes your landlord pay interest on the deposit every year, at the rent increase guideline in effect when the payment falls due. Each year here is due on its last day, as in the Landlord and Tenant Board's example: a deposit paid August 1, 2013 earned 0.8%, the 2014 guideline, on July 31, 2014.
When the rent goes up, the landlord may keep that year's interest, or part of it, to bring the deposit up to the new rent (section 106(7)), and must pay the rest. So each row pairs a year's interest with the rent you pay from the next day. Before January 31, 2007 the rate was 6%, with no top-up rule.
Only interest already due counts as owed. Section 135(4) bars an LTB order on an application filed more than one year after the landlord collected or retained the money. When unpaid interest counts as retained is not settled, so apply soon.
Guideline rates by year
- 2007 2.6%
- 2008 1.4%
- 2009 1.8%
- 2010 2.1%
- 2011 0.7%
- 2012 3.1%
- 2013 2.5%
- 2014 0.8%
- 2015 1.6%
- 2016 2.0%
- 2017 1.5%
- 2018 1.8%
- 2019 1.8%
- 2020 2.2%
- 2021 0%
- 2022 1.2%
- 2023 2.5%
- 2024 2.5%
- 2025 2.5%
- 2026 2.1%
- 2027 1.9%
Example
Maya paid a $1,500 deposit on March 1, 2022. Her rent rose to $1,537.50 on March 1, 2023 and $1,575.94 on March 1, 2024, and each time her landlord kept the year's interest as a top-up. In 2025 the rent stayed the same, so the $39.40 could not be kept. With $33.09 for the next year, $72.49 is owed. Open Maya's figures.
Questions
Is the interest compounded?
No. Section 106(6) charges interest on the amount of the deposit. Unpaid interest is money owed to you, not part of the deposit, so it earns nothing. Only the part a landlord keeps as a top-up joins the deposit and earns interest after that.
My landlord never paid. What can I do?
Ask in writing; the letter here does that. Or apply to the Landlord and Tenant Board with Form T1, reason 5. While you rent, section 106(9) lets you deduct it from rent, but deduct only recent interest that is clearly owed, after telling the landlord in writing: a disputed deduction can lead to a notice for unpaid rent. For older amounts, ask a legal clinic first.
Is there a time limit?
For the LTB, there can be. Form T1, reason 5, is how a tenant claims unpaid interest, and section 135(4) bars an order on an application filed more than one year after the landlord collected or retained the money. When unpaid interest counts as retained is not settled, so apply soon, and ask a legal clinic about older years.
How is a part year handled when I move out?
The Act does not say. Section 87(4) has the LTB subtract deposit interest owing on termination, so the last part year is counted by days to your last day, at the guideline then. A last day still to come is a projection, not owed.
My rent never went up. Is interest still owed?
Yes. The interest is owed every year whether or not the rent changes. With no increase there is no top-up, so the landlord must pay all of it. In 2021 the guideline was 0%, so nothing was due for a year ending in 2021.
My unit is exempt from rent control. Does this apply?
Yes. New buildings, additions and most new basement apartments first occupied for residential purposes after November 15, 2018 are exempt from the rent increase guideline. Section 106 still applies to them, and the interest rate is still the guideline.
My rent went up. What do I enter?
Enter the rent you pay on each row's date, even if it rose earlier. Paid February 10, with rent rising each March 1? On the row 'from Feb 10, 2025', enter the rent that started March 1, 2024. If the landlord asked you to top up the deposit (section 106(3)), enter what you paid under Extra you paid in.
My deposit is from before 2000, or I pay weekly.
Dates start in 2000. For an older deposit, enter a later date and the deposit as it stood then, and ask a legal clinic about earlier years. If you pay weekly, enter weekly amounts: the cap is one rent period.
Sources, checked November 2, 2026: Residential Tenancies Act, 2006, s. 106 and s. 120 (consolidated from September 21, 2026; s. 106 unchanged since 2014), Ontario rent increase guideline (updated June 23, 2026), Tenant Protection Act, 1997, s. 118, and the LTB's Form T1 instructions.
This is a calculator, not legal advice. Check with the LTB or a legal clinic for disputes.