Deposit Replacement Calculator
Compare a non-refundable deposit replacement fee against a traditional refundable deposit across the length of a tenancy.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Deposit replacement products let a tenant pay a smaller non-refundable fee instead of a full refundable deposit. The cash flow advantage at move-in is real and substantial, particularly when the old deposit has not yet been returned.
The cost is that the fee is gone, and usually recurs each year, while a deposit comes back. You also remain liable for damages at the end either way — the product protects the landlord, not you.
The comparison
A traditional deposit is money tied up but returned, so its real cost is the return it would otherwise have earned. A scheme fee is spent and typically renews annually. The net cost of the scheme is the fees paid less the interest the deposit would have generated.
Worked example
On a 1,500 rent, a five-week deposit is 1,731 and a one-week annual fee is 346. Across a three-year tenancy the fees total 1,038, while the deposit would have earned about 208 at 4%. The scheme therefore costs about 830 net — in exchange for not having to find 1,731 at move-in.
You are still liable for damage
These products insure the landlord against loss, then pursue the tenant for it. Being in a scheme does not reduce what you owe at the end, so the check-in inventory and photographs matter exactly as much as with a deposit.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Is a deposit replacement scheme cheaper?
Almost never in total cost, and frequently much better for cash flow at move-in. It converts a large refundable sum into a small recurring non-refundable one, which suits a tenant short of upfront cash.
Do I still owe money for damage?
Yes. The scheme pays the landlord and then recovers from you, so your liability is unchanged. The protection is the landlord, and treating the product as though it covers you is the common and expensive misunderstanding.
Can a landlord require one?
In many jurisdictions the tenant must be offered the choice of a traditional deposit, and requiring a scheme may be unlawful. Check the local rules if you are being told a scheme is the only option.