Deposit Bond Cost Estimator
Estimate the premium for a deposit bond used instead of a cash deposit, based on an editable provider rate you enter.
Your results
Calculation breakdown
- Premium
- deposit amount covered × bond premium rate
Worked example
A $60,000 deposit covered by a deposit bond at an estimated 1.5% premium rate costs around $900.
Assumptions
- Deposit bond premium rates are set individually by each provider and vary with settlement timeframe and applicant risk.
- A deposit bond substitutes for cash at exchange but the full deposit is still payable at settlement.
How this calculator works
A deposit bond lets you satisfy a deposit requirement without paying cash upfront, in exchange for a premium charged by the bond provider. Since premiums are set individually by each provider, enter your quoted premium rate to estimate the total cost for your contract term.
Frequently asked questions
Why use a deposit bond instead of cash?
It can free up cash that would otherwise be tied up as a deposit, particularly for long settlement periods or off-the-plan purchases.
Is the premium refunded at settlement?
No, the premium is the provider's fee for issuing the bond and is not refunded once paid, regardless of settlement outcome.
Do all providers charge the same rate?
No, premiums vary by provider, contract length and buyer circumstances, so compare quotes before committing.
Results are estimates only and are not financial, tax, legal or credit advice.