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.
Last updated: March 2026
Your details
The amount quoted by the aged care home
Current rate: 1 January – 31 March 2026. Set by the government quarterly.
Try different stay lengths to model your scenario
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. Many families consider a combination payment because it balances cash flow and retained capital.
Under the new rules (from 1 November 2025), there is no fixed deadline to choose your payment method. If you don't pay a lump sum upfront, daily payments (DAP) are charged automatically. You can pay or top up a RAD at any time — but every day without a decision costs money in non-refundable DAP.
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.