At move-out, the security deposit is reconciled: deposit minus itemized deductions (damage, cleaning, unpaid rent) equals the refund — or the balance the tenant still owes if deductions exceed the deposit.
The example
$1,500 deposit, $640 deductions.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 1500 − 640 | — |
| 3 | Refund | → $860 |
The formula
The formula:
How it works
How it works:
- Itemize deductions — damage beyond normal wear, cleaning, unpaid rent — and SUM them.
- Subtract from the deposit for the refund.
- If deductions exceed the deposit, the negative is the balance the tenant owes.
- Use MAX(refund, 0) for the refund and a separate cell for any amount owed.
Itemization is a legal requirement, not a courtesy. Most jurisdictions require a written, itemized statement of deductions within a set number of days of move-out, and only allow charges beyond “normal wear and tear.” Keep each deduction on its own line with a description and amount, sum them, and document the rest. This is illustrative bookkeeping, not legal advice — follow your local deposit statute and deadlines.
Try it: interactive demo
Deposit and total deductions.
Variations
Refund (floored)
Never negative:
Balance owed
If over deposit:
Total deductions
Itemized sum:
Pitfalls & errors
Itemize. Each deduction on its own line with a description.
Wear and tear. Normal wear isn’t deductible in most places.
Not legal advice. Deposit statutes and deadlines vary — follow them.
Practice workbook
Frequently asked questions
How do I calculate a security deposit refund in Excel?
What if deductions exceed the deposit?
What can I deduct?
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