🔍Rent Conversion Rate Checker

Enter the deposit reduction and rent increase to find the implied conversion rate and check if it is fair.

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Is Your Deposit-to-Rent Trade-Off Fair?

When a landlord proposes to lower your deposit in exchange for higher monthly rent — or vice versa — the deal has an implied annual yield. This calculator reveals that yield so you can compare it to a fair market benchmark. The formula is: (monthly rent increase × 12 ÷ deposit decrease) × 100 = conversion rate.

In the US, there is no statutory cap, but a rate of 4–6% is broadly considered fair in line with current savings and Treasury rates. A rate above 8–10% strongly favors the landlord. Use this number in your negotiation: if the rate is high, propose a smaller rent increase or a smaller deposit reduction to bring it into a reasonable range.

Frequently Asked Questions

My landlord wants to drop deposit by $2,000 and raise rent by $20/month. Is that fair?

The implied rate is $20 × 12 ÷ $2,000 = 12%. That is well above the 4–6% fair range and heavily favors the landlord. You can counter by proposing a $10–$15/month rent increase instead.

What if the rate is very low, below 2%?

A very low rate favors the tenant. It means the landlord is giving you a big deposit reduction for a tiny rent increase. That can make sense if you need cash flow today, but ensure the new lease terms are otherwise acceptable.