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. Understanding this calculation before you sell is not optional: it's the foundation of your upgrade budget.
Step 1: Start With The Sale Price
Begin with the agreed sale price. This is your gross starting figure.
Step 2: Deduct The Outstanding Loan Balance
If you have an outstanding HDB loan or bank loan on the flat, the full balance must be repaid from the sale proceeds at completion. Check your latest CPF or bank statement for the exact outstanding balance as of the expected completion date (it will reduce with each monthly repayment between now and then).
Step 3: Deduct The CPF Refund (Principal + Accrued Interest)
This is the most commonly underestimated deduction. Every dollar of CPF used for the purchase — initial downpayment and monthly mortgage repayments — must be refunded to your CPF accounts at sale, along with accrued interest at 2.5% per annum compounded. Check your CPF statement under "Properties" to find this figure. It can be substantially higher than the raw CPF amount you remember withdrawing.
Step 4: Deduct Agent Commission
Standard seller's agent commission for HDB resale is 1–2% of the sale price, negotiated before appointment. On an $850,000 sale, that's $8,500–$17,000. Confirm the exact amount agreed with your agent.
Step 5: Deduct Legal Fees
Conveyancing fees for the sale side typically run $1,500–$3,000 for HDB transactions.
Step 6: What Remains Is Your Net Cash Proceeds
The figure after all deductions is your actual cash in hand from the sale. 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. This net cash figure, combined with your available savings and new CPF position after the refund, determines what you can realistically put toward your next property.
Running this calculation before listing — not after accepting an offer — is the difference between a pleasant confirmation and an unpleasant surprise.