Updated on

Rental deposit calculator: how high may the deposit be?

Net cold rent and the deposit asked for are enough; add the start date and interest rate for instalments and interest.

Checked by Radif Partners · Editorial policy · Method

Without the service-charge advance

Maximum lawful deposit

€2,550

Three instalments of€850
1. instalment due1 November 2026
2. instalment due1 December 2026
3. instalment due1 January 2027
Interest until move-out€51.38
Arrears that allow termination€1,700

Interest belongs to the tenant and is added to the deposit (Section 551(3) BGB). Your deposit account statement shows the rate.

How we calculate

A German rental deposit (Mietkaution) may be at most three times the monthly rent without the service charges shown as a flat rate or advance (Section 551(1) of the Civil Code). What counts is therefore the net cold rent (Nettokaltmiete). A cash deposit may be paid in three equal monthly instalments: the first at the start of the tenancy, the other two with the following rent payments. The landlord must keep the money separate from his own, in a bank account paying at least the usual rate for savings with three months' notice; the interest belongs to you and is added to the deposit. With net cold rent of €850, at most €2,550.00 is allowed, so three instalments of €850.00, due on 1 November 2026, 1 December 2026 and 1 January 2027. At 0.5 per cent interest over four years, €51.38 is added. If the landlord asks for €3,000, the agreement is void as to the €450.00 above the limit.

What the calculator checks

It multiplies your net cold rent by three and compares the result with the deposit demanded. If the demand is higher, the agreement is void only as to the excess; up to the limit it stands, and anything you overpaid can be reclaimed. With the start date it shows the three instalments that Section 551(2) BGB grants you. With your deposit account's interest rate it works out the interest to move-out, compounded, because the earnings are added to the deposit.

Rental deposit under Section 551 BGB, example with the default values
ItemValue
net cold rent€850.00
maximum lawful deposit€2,550.00
instalment 1 on 1 November 2026€850.00
instalment 2 on 1 December 2026€850.00
instalment 3 on 1 January 2027€850.00
interest at 0.5 per cent over four years€51.38
arrears limit for termination without notice€1,700.00

How you can provide the deposit

The law assumes a sum of money but allows other forms if agreed: a savings book in your name pledged to the landlord, a bank guarantee or a deposit insurance. The three-month limit applies to all securities together. For student or youth halls the landlord need not pay interest. When and how you get the money back after moving out is on the deposit refund page; the principles are on the rental deposit page.

Frequently asked questions

Do service charges count towards the deposit limit?

No. Section 551 BGB expressly leaves out service charges shown as a flat rate or advance. If you pay €850 net cold rent plus a €200 advance, the limit is €2,550.00, not €3,150.00. Only if no service charges are shown separately, as with an all-inclusive rent, is the total rent the basis.

Can the landlord demand the full deposit when handing over the keys?

No. You may pay in 3 equal instalments, and this rule cannot be changed to your disadvantage. The first instalment is due at the start of the tenancy, the second and third with the next two rent payments. A lease that makes the keys conditional on the full deposit is void on that point.

When can the landlord terminate over an unpaid deposit?

Without notice once you are in arrears with an amount equal to two months’ net cold rent (Section 569(2a) BGB), so from €1,700.00 at €850 rent. He needs no warning or deadline for that. Paying one instalment late does not reach this limit with a deposit of three months’ rent.

Related pages and calculators

Sources

Written by

Publisher of German tenancy-law calculators

Updated on · Editorial policy · Contact

Legal status 2026, checked on