Security Deposit Interest Calculator — New Mexico
Calculate the interest you owe a New Mexico tenant on their security deposit, using the state's own rule and statute.
Used to compute the amount exempt from interest in this state.
The rate equals what your bank actually paid. Enter your account's rate for an accurate figure.
Interest owed to tenant
$4.06
- Time held
- 2.03 yrs
- Total to return
- $2,004.06
New Mexico rule
On a lease of at least one year, if the deposit exceeds one month's rent, the landlord must pay annual interest at the passbook savings rate on the portion above one month's rent.
When paid: Annually, at the end of each rental year.
Last verified June 12, 2026.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.
How New Mexico treats security deposit interest
On a lease of at least one year, if the deposit exceeds one month's rent, the landlord must pay annual interest at the passbook savings rate on the portion above one month's rent.
When it must be paid: Annually, at the end of each rental year.
Worked example
Example: a $1,500.00 deposit held for 2 years at 0.10% per year. After excluding the $1,000.00 exempt amount, interest is computed on $500.00. Simple interest owed ≈ $1.00, so the landlord returns about $1,501.00 in total. (Rates can change year to year — confirm the current figure.)Last verified June 12, 2026.
New Mexico security deposit obligations
Even where interest isn't required, New Mexico still regulates the deposit itself: you generally must return it within 30 days of move-out (N.M. Stat. § 47-8-18). You must include an itemized statement of any deductions.
Open the New Mexico deposit return tracker to confirm the deadline and build an itemized deductions statement.
New Mexico security deposit interest FAQ
Do landlords have to pay interest on security deposits in New Mexico?+
Yes. On a lease of at least one year, if the deposit exceeds one month's rent, the landlord must pay annual interest at the passbook savings rate on the portion above one month's rent. (N.M. Stat. § 47-8-18).
How is security deposit interest calculated in New Mexico?+
Interest is simple (non-compounded). Multiply the deposit above the exempt amount by the annual rate and by the number of years held. Interest only begins after the deposit has been held 12 months.
When must New Mexico landlords pay the interest to the tenant?+
Annually, at the end of each rental year.
When must a New Mexico landlord return the security deposit?+
Generally within 30 days of move-out (N.M. Stat. § 47-8-18). Use the LandlordKit deposit return tracker for the exact rule and an itemized statement.
Is the LandlordKit security deposit interest calculator free?+
Yes — it's completely free, requires no signup, and you can download a PDF interest statement to give your tenant.
Other states
Need the full picture? See the security deposit interest calculator for all states.