Updated for 2026 rules
RAD vs DAP Calculator
Compare lump sum vs daily payments for aged care accommodation. Updated for the November 2025 changes including the 2% retention fee and DAP indexation.
Your details
The amount quoted by the aged care home
Current rate as of Jan 2026. Set by the government quarterly.
Average stay is 2.5–3 years
Term deposits ~4–5%, balanced fund ~6–7%, shares ~8–10%
Drag to model a combination payment
What is RAD vs DAP?
When someone enters residential aged care in Australia, the family must choose how to pay for the accommodation. There are two main options:
- RAD (Refundable Accommodation Deposit) — a lump sum paid upfront. It's refundable when the person leaves care (minus a 2% annual retention fee, introduced November 2025).
- DAP (Daily Accommodation Payment) — ongoing daily payments calculated using the MPIR (currently 7.65%). DAP is not refundable and now increases with CPI twice yearly.
- Combination — pay part as a lump sum and the remainder as daily payments. Most families choose this option.
You have 28 days from the date of entry to decide. Until you choose, DAP is charged automatically.
Learn more
This calculator provides estimates only and does not constitute financial advice. Actual costs depend on your specific circumstances, the aged care facility's pricing, and your means-tested assessment from Services Australia. The MPIR, fees, and thresholds change periodically — always verify current rates with the Australian Government Department of Health. We strongly recommend speaking with a specialist aged care financial advisor before making accommodation payment decisions.