When an HDB flat sells for $850,000, the sellers rarely walk away with $850,000. The actual cash they receive — the net proceeds — is typically a fraction of that figure, after several mandatory deductions.
The Calculation
Step 1: Start With The Sale Price — your gross starting figure.
Step 2: Deduct The Outstanding Loan Balance — the full balance must be repaid from sale proceeds at completion.
Step 3: Deduct The CPF Refund (Principal + Accrued Interest) — the most commonly underestimated deduction. Check your CPF statement under 'Properties' to find this figure.
Step 4: Deduct Agent Commission — typically 1–2% of the sale price.
Step 5: Deduct Legal Fees — typically $1,500–$3,000 for HDB transactions.
Step 6: What Remains Is Your Net Cash Proceeds.
For many families, this number is significantly lower than the headline sale price — sometimes as low as 20–30% of it if the CPF refund and outstanding loan are large. Running this calculation before listing — not after accepting an offer — is the difference between a pleasant confirmation and an unpleasant surprise.