CPF Accrued Interest
Housing refund estimator — principal + 2.5% AI.
Simplification: this models a single lump sum held for the full period at the CPF OA floor rate of 2.5%. In reality, OA is drawn down monthly over the mortgage tenure, so each instalment compounds for a shorter time. The actual accrued interest shown on your CPF statement is the authoritative figure for any sale.
Frequently asked questions
What is CPF accrued interest?▾
When you use your CPF Ordinary Account (OA) money to pay for a property, you must refund the principal AND the interest that money would have earned (at the OA rate of 2.5% per annum, compounded) on sale of the property. This is the 'accrued interest' (AI). Together with the principal, it is the 'CPF refund' that goes back into your OA on completion of the sale.
What is the current CPF Ordinary Account rate?▾
The OA floor rate is 2.5% per annum, reviewed quarterly by CPF Board. The rate has been at this floor for many years. Interest is computed monthly and credited annually.
Why is the accrued interest important?▾
On sale, the CPF refund (principal + AI) comes out of the sale proceeds before you receive any cash. If the property has appreciated less than the CPF refund + outstanding loan, you may receive little or even zero cash — sometimes called 'cash-over-valuation' problem in reverse. This is also called 'negative cash sale'.
Can I avoid refunding the accrued interest?▾
No, this is required by law. However, if you are above 55 and the refund causes your CPF to exceed your Full Retirement Sum (FRS), the excess above the FRS may be available for withdrawal. The 95-year rule (Budget 2024) limits new CPF housing use so the loan ends by age 95 with sufficient retirement adequacy.
Why does this calculator give an estimate, not the exact figure?▾
The exact accrued interest depends on when each dollar of CPF was withdrawn (downpayment vs monthly mortgage), and is compounded monthly by CPF. This calculator assumes a single lump sum held for the full period — close but not exact. Your CPF statement (cpf.gov.sg → My Statement) shows the authoritative AI for housing.