RAD and DAP calculator
Aged care homes publish a room price. You can pay it as a refundable lump sum (RAD), a daily payment (DAP), or any mix of both. This calculator shows what each choice actually costs.
Every home must publish its room prices. Rooms above $750,000 need government approval.
DAP calculated at the Maximum Permissible Interest Rate of 8.43% as at 1 July 2026 (reviewed quarterly). Basic daily fee $66.80 as at 20 March 2026 (indexed with the Age Pension in March and September). For residents entering from 1 November 2025, providers retain 2% of a RAD per year for up to 5 years, and means-tested contributions can also apply. This is a guide, not financial advice.
The four cost layers of residential care
- Basic daily fee. Everyone pays this. It is set at 85% of the single basic Age Pension and indexed in March and September.
- Accommodation (RAD or DAP). What this calculator covers. The lump sum is government-guaranteed and refunded when you leave, less any agreed deductions. For residents entering from 1 November 2025, providers retain 2% of the RAD per year for up to 5 years.
- Means-tested contributions. Services Australia assesses income and assets and may ask you to contribute more towards care and everyday living costs. Caps apply.
- Extras. Optional higher-everyday-living packages for things like wine with dinner or premium TV. Entirely optional and must be agreed in writing.
Room prices are published for every home. When you compare homes, compare the room price AND the Star Rating together; an expensive room in a poorly rated home is the worst of both worlds.
What common room prices work out to
The daily payment is worked out by applying the government’s Maximum Permissible Interest Rate to the room price, currently 8.43% (as at 1 July 2026). The rate is locked in on the day you enter, so it does not move underneath you later. Add the basic daily fee of $66.80 a day on top of everything below.
| Room price (RAD) | As a daily payment (DAP) | DAP per year | Half lump sum, half daily |
|---|---|---|---|
| $400,000 | $92.38 a day | $33,720 | $200,000 + $46.19/day |
| $550,000 | $127.03 a day | $46,365 | $275,000 + $63.51/day |
| $700,000 | $161.67 a day | $59,010 | $350,000 + $80.84/day |
| $850,000 | $196.32 a day | $71,655 | $425,000 + $98.16/day |
| $1,000,000 | $230.96 a day | $84,300 | $500,000 + $115.48/day |
Illustrative room prices, not quotes. Every home publishes its own price and they vary widely, including between rooms in the same home.
Lump sum or daily payment: how to actually decide
There is no universally right answer, and anyone who tells you otherwise is guessing about your circumstances. The trade-off is roughly this. Paying the lump sum means the money is tied up but fully refundable and government-guaranteed, and it is not counted as an assessable asset for the pension in the same way cash is, which can affect your pension. Paying daily keeps your capital free to earn elsewhere, but the payment is not refundable, it is a genuine expense.
The practical question is what return your money would earn if you kept it. If you can reliably earn more than 8.43% after tax, keeping the capital and paying daily may come out ahead. If you cannot, the lump sum often does. Because the answer turns on your pension position, your other assets and whether the family home is being sold, this is the one part of aged care where paid financial advice usually pays for itself.
You can also split it, and most families do. Paying part as a lump sum and the rest daily lets you keep some cash accessible while reducing the daily cost, and you can ask the home to deduct the daily payment from the lump sum you have already paid rather than paying it separately.
Is my lump sum safe?
Yes. Refundable deposits are guaranteed by the Australian Government under the Accommodation Payment Guarantee Scheme. If a provider fails, the government refunds your balance. This is one of the few genuinely reassuring parts of the system, and it is worth knowing before you hand over a sum that is often most of a family’s savings.
One change to note: for residents entering from 1 November 2025, providers may retain 2% of the room price per year for up to five years, so a lump sum is no longer refunded in full after a long stay. Factor that in when comparing.
The full cost guide · Home care budget calculator · Home care versus residential care