Combination Payments

What is a combination payment?

You don't have to choose between full RAD or full DAP. Most families pay a combination — part as a lump sum (RAD) and the remaining balance as daily payments (DAP).

You can choose any split you like. Common splits are 50/50, 60/40, or whatever your available funds allow.

How is the DAP calculated on a combination?

Your DAP is calculated only on the unpaid portion of the room price:

How do retention and indexation apply?

• RAD retention (2% p.a.) applies only to the RAD portion you've paid. In the example above, retention is on $200,000, not $500,000.
• DAP indexation (CPI) applies to your daily payment. The $62.88/day will increase with CPI twice yearly.

Why do most families choose this?

• Reduces daily costs — paying some RAD lowers the DAP, making ongoing costs more manageable
• Keeps some money accessible — you don't tie up everything in the RAD. Money stays available for emergencies, home maintenance, or other family needs.
• Balances risk — you get some benefit of RAD (lower daily costs, partial refund) while keeping some money invested
• Flexible timing — you can pay what you have now and adjust later. You can top up your RAD at any time to reduce DAP.

Can you change the split later?

Yes. You can increase your RAD at any time (which reduces your DAP). However, you generally cannot reduce your RAD once paid — you can't withdraw part of your RAD to switch back to more DAP.

This means it's often wise to start with a smaller RAD and increase it later once your financial picture is clearer, rather than paying a large RAD upfront and wishing you could access the money.

Model your combination

Use the slider in our calculator to see how different splits affect your total cost.