# CPF accrued interest when you sell: what it is and how it grows

> Why CPF asks for accrued interest on top of the CPF you used for your home, when it starts and stops, how it compounds, and how to find your real figure.

- Tool: [CPF Accrued Interest Calculator](https://toolsg.com/en/cpf-accrued-interest-calculator)
- Language: en (available: en, zh)
- Last verified against official sources: 2026-10-28
- Source site: ToolSG — a planning guide, not official or financial advice. Cite the agencies listed under Sources.

## Key figures at a glance

| Fact | Value | Source |
| --- | --- | --- |
| What you refund on sale | CPF principal (incl. housing grants) + accrued interest — Plus any pledged amount if you are 55 or older and pledged the property. | [CPF Board](https://www.cpf.gov.sg/service/article/do-i-have-to-refund-the-housing-grant-to-my-cpf-account-upon-sale-of-my-property) |
| When accrued interest runs | From first use of CPF until the refund — It keeps accruing after the housing loan is fully repaid. | [CPF Board](https://www.cpf.gov.sg/service/article/why-do-i-need-to-refund-the-accrued-interest-on-the-amount-of-cpf-savings-used-for-my-property) |
| Compounding | Annually — At CPF's prevailing interest rates, compounded annually throughout the period. | [CPF Board](https://www.cpf.gov.sg/service/article/why-do-i-need-to-refund-the-accrued-interest-on-the-amount-of-cpf-savings-used-for-my-property) |
| Ordinary Account rate used in the model | 2.5% a year — Rate for 1 Oct – 31 Dec 2026; legislated minimum 2.5%. Reviewed quarterly. | [CPF Board](https://www.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/earning-attractive-interest) |

## What accrued interest is

When you use CPF for a home, that money stops earning interest in your CPF accounts. When you sell, CPF asks you to put back **the CPF principal you used, including housing grants, plus accrued interest**. The refund goes back into your own CPF, so it is not lost, but it is not cash either.

## When it starts, stops and compounds

- It runs **from the date you first used your CPF savings for the property** until the refund is made.
- It uses **CPF's prevailing interest rates** and is **compounded annually**.
- It **keeps accruing after your housing loan is fully repaid**, because it is based on the CPF savings withdrawn for the property.

Because it compounds, interest in a year earns interest from the next year, so the longer you stay the faster the amount grows.

## How this calculator estimates it

CPF does not publish its refund formula, so the calculator uses a simple model built from the rules CPF does publish:

1. Interest each month is the balance × 2.5% ÷ 12.
2. A withdrawal stops earning from the month it occurs, so it starts earning the following month.
3. Interest for a calendar year is added to the balance in December.
4. The month of the refund itself earns nothing.

The result is an **estimate**. Your own figure is in the **"What happens if" section of your Home Ownership dashboard** on the CPF website, and that is the number to plan with.

## Worked examples

| Case | Interest | Total refund |
| --- | --- | --- |
| $100,000 used Jan 2024, refund Jan 2025 | $2,291.67 | $102,291.67 |
| $100,000 used Jan 2024, refund Jan 2026 | $4,848.96 | $104,848.96 |
| $60,000 used Jun 2019 plus $1,200 a month for 60 months, refund Oct 2026 | $20,709.20 | $152,709.20 |

## Housing grants

Housing grants are refunded together with the CPF principal and accrued interest, generally to your Ordinary Account. If you received more than $30,000 in grants, part may go to your Special or Retirement Account and MediSave Account, and the dashboard shows the exact split. The calculator treats grants as CPF used at the first-use month.

## Common mistakes

- **Stopping the clock when the loan is repaid.** Interest keeps accruing.
- **Forgetting grants.** They are refunded with interest.
- **Using this estimate as the final figure.** Check the CPF dashboard.
- **Assuming it is lost money.** It returns to your own CPF.

## Related tools

- [HDB sale proceeds calculator](https://toolsg.com/en/hdb-sale-proceeds-calculator) — what you keep in cash after the refund.
- [Seller's Stamp Duty calculator](https://toolsg.com/en/seller-stamp-duty-calculator) — SSD if you sell early.
- [HDB lease and CPF calculator](https://toolsg.com/en/hdb-lease-cpf-calculator) — how much CPF a flat with a short lease allows.
- [CPF contribution calculator](https://toolsg.com/en/cpf-calculator) — how your CPF builds up.

## Frequently asked questions

**Do I pay accrued interest when I sell my HDB flat?**

Yes. You refund the CPF principal withdrawn for the property, including housing grants, and the accrued interest.

**When does accrued interest start and stop?**

It runs from the date you first used your CPF savings for the property until the refund is made, and it continues after the housing loan is fully repaid.

**Is accrued interest compounded?**

Yes. CPF says it is compounded annually throughout the period.

**Is this the exact CPF figure?**

No. CPF does not publish its formula, so this is an estimate. Use the “What happens if” section of your Home Ownership dashboard for your actual figure.

**What interest rate does the calculator use?**

2.5% a year, the Ordinary Account rate, which has a legislated minimum of 2.5%. It is held constant in the model.

**Is the refund money lost?**

No. It is credited back to your own CPF. See the HDB sale proceeds calculator for where it goes.


## Sources

- [CPF Board — Why do I need to refund the accrued interest on the amount of CPF savings used for my property?](https://www.cpf.gov.sg/service/article/why-do-i-need-to-refund-the-accrued-interest-on-the-amount-of-cpf-savings-used-for-my-property) — When accrued interest starts, that it compounds annually and keeps accruing after the loan is repaid (page updated 9 Oct 2026).
- [CPF Board — How is my CPF interest computed and credited into my accounts?](https://www.cpf.gov.sg/service/article/how-is-my-cpf-interest-computed-and-credited-into-my-accounts) — Interest is computed monthly and compounded annually; withdrawals stop earning from the month they occur.
- [CPF Board — Earning CPF interest](https://www.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/earning-attractive-interest) — Ordinary Account rate and the legislated minimum.
- [CPF Board — Do I have to refund the housing grant to my CPF account upon sale?](https://www.cpf.gov.sg/service/article/do-i-have-to-refund-the-housing-grant-to-my-cpf-account-upon-sale-of-my-property) — Housing grants are refunded with the CPF principal and accrued interest.