1. Interactive RAD vs DAP Calculator

Adjust the sliders below to calculate your exact daily and monthly accommodation costs based on the published room price and your preferred payment mix:

2026 Statutory Formula • Current MPIR Rate: 8.51% p.a.

RAD vs DAP Accommodation Fee Calculator

Compare your daily accommodation payments (DAP), upfront refundable deposits (RAD), and estimated 5-year estate impact.

$550,000
Quick Presets:
50% RAD / 50% DAP
100% DAP (No upfront) 50/50 Split 100% RAD (Full lump)
Current Government MPIR Benchmark: 8.51% p.a. (Statutory determination)
Option 1: 100% Lump Sum (RAD)
$550,000

Daily DAP Cost: $0.00 / day

Refundable to Estate: 100% ($550,000)

Government Guarantee: 100% Backed

Custom Selection
Combination (RAD + DAP)
$64.12 /day

Upfront RAD Paid: $275,000

Monthly DAP Rental: $1,950

Annual DAP Total: $23,403

Option 3: 100% Daily (DAP)
$128.23 /day

Upfront Lump Sum: $0 (Nil)

Monthly Rental Cost: $3,900

Refundable to Estate: $0 (Non-refundable)

5-Year Cumulative Outlay Projection

Avg Stay: 2.8 to 5 Years

Based on the average Australian aged care length of stay (2.8 to 5 years), here is the cumulative cost projection:

1 Year DAP Cost
$23,403
3 Year DAP Total
$70,208
5 Year DAP Total
$117,013
Estate Refund (at exit)
$275,000

Save or print this comparison sheet for family consultations and financial advisory meetings.

2. How the RAD and DAP System Works

Every resident entering an Australian permanent aged care home agrees to an accommodation price. You have three statutory payment methods:

  • Option 1: 100% Lump Sum (RAD): You pay the full agreed amount (e.g. $550,000) upfront. You pay $0.00 in daily DAP rent. The entire $550,000 is refunded to your family estate when you leave.
  • Option 2: 100% Daily Rental (DAP): You pay no upfront lump sum. Instead, you pay a daily fee based on the MPIR interest rate (e.g. $128.23/day on a $550k room). This daily payment is non-refundable.
  • Option 3: Combination (RAD + DAP): You pay whatever lump sum you have available (e.g. $250,000), and only pay DAP interest on the remaining unpaid portion ($300,000).

3. The 2026 Statutory Calculation Formula

The daily rental fee is strictly governed by Commonwealth legislation using the formula:

Daily DAP = (Unpaid RAD × MPIR Rate 8.51%) ÷ 365 Days

4. Independent Calculator vs Official My Aged Care Estimator

Many Australian families look for the official My Aged Care Fee Estimator when trying to plan aged care affordability. While the government tool calculates statutory means-tested care fee bands, it has notable limitations for family decision-making:

  • Requires Full Asset Disclosure: The official estimator demands every bank account balance, super balance, and share portfolio before revealing an estimated figure.
  • No Dynamic RAD/DAP Split Modeling: It does not let you interactively slide between 25%, 50%, or 75% RAD payments to test cash flow tradeoffs in real time.
  • No Estate Refund Projections: It does not demonstrate the capital refund returned to your family estate upon departure.

Our independent calculator gives you instant, private scenario modeling with zero sign-up, zero data tracking, and zero commercial sales pressure.

5. Estate Protection & Age Pension Asset Test Rules

Age Pension Asset Test Advantage
Money paid into an approved aged care facility as a RAD is 100% exempt from the Centrelink Age Pension asset test. For many self-funded or part-pensioner retirees, paying a larger RAD actually increases their fortnightly Age Pension entitlement!

Worried About Having to Sell Your Family Home?

Read our in-depth legal guide on Protected Person exemptions and the 2-year Centrelink rules.

Read the Family Home Protection Guide →