LeaseTrailLast month’s rent interest calculator (Ontario)
Not legal advice. Ontario rules change; confirm with Tribunals Ontario / the Landlord and Tenant Board (LTB) and a qualified professional.
Ontario landlords who collect a last month’s rent (LMR) deposit generally owe interest on that deposit. This page explains the common educational approach — interest often tracks that year’s rent increase guideline — and points you to LeaseTrail’s calculator.
Why LMR interest matters
Tenants (and careful landlords) track whether interest was credited or paid. Leaving interest undocumented creates avoidable friction at move-out or when reconciling ledgers. Keeping the deposit amount, payment date, and yearly interest notes in one place reduces surprises.
How the educational estimate works
- Start with the LMR deposit amount actually held.
- Select the calendar year you are calculating interest for.
- Apply that year’s guideline rate (where that is the applicable interest approach).
- Record whether interest was paid out or credited toward rent.
Open the interactive tool: Last month’s rent interest calculator on LeaseTrail’s Tools page. Results are estimates for learning only.
Practical checklist
- Store the original LMR receipt or e-transfer confirmation
- Note the tenancy start date and unit address
- Log interest each year (amount + method: paid vs credited)
- Align the ledger with any rent receipts you issue
- At move-out, reconcile deposit vs final month owed
Connect it to your paper trail
Pair interest notes with a rent ledger and, when useful, a rent receipt workflow so both parties see the same numbers.
Start free on LeaseTrail
Keep rent ledgers, maintenance notes, and move-in/out Evidence Packs organized in one place — with timestamps and PDF export.