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 (MPIR: 8.38% p.a.)

RAD vs DAP Accommodation Fee Calculator

Calculate your exact daily, monthly, and 5-year accommodation costs based on whether you pay a lump sum (RAD), daily payment (DAP), or a combination.

$550,000
Quick Presets:
50% RAD / 50% DAP
100% DAP (No upfront cash) 50/50 Split 100% RAD (Full lump sum)
Current Government MPIR Interest Rate: 8.38% p.a. (Fixed on admission)
Option 1: 100% Lump Sum (RAD)
$550,000

Daily DAP Cost: $0.00 / day

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

Gov Guarantee: 100% Backed

Your Selection
Combination (RAD + DAP)
$63.12 /day

Upfront RAD Paid: $275,000

Monthly DAP Rental: $1,920

Annual DAP Total: $23,045

Option 3: 100% Daily (DAP)
$126.27 /day

Upfront Lump Sum: $0 (Nil)

Monthly Rental Cost: $3,840

Refundable to Estate: $0 (Non-refundable)

📊 5-Year Financial Impact Projection

If you pay DAP from savings or draw down fees from your RAD, here is the net cost over the average Australian aged care stay (2.8 years to 5 years):

1 Year DAP Cost
$23,045
3 Year DAP Total
$69,135
5 Year DAP Total
$115,225
Estate Refund (at 5yr)
$275,000

Need a personalised comparison report ready to print or save for family 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. $126.27/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 8.38%) ÷ 365 Days

4. 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 →