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Aged Care Cost Calculator Australia — Fees & Means Test

Estimate residential aged care costs, compare RAD vs DAP accommodation payments, and understand how the family home affects the means test.

Important: Aged care fees are extremely complex and recently reformed. These are estimates only. Seek specialist aged care financial advice before making any decisions. Fees depend on individual assessments by Services Australia.
$
Pension + any other income (super, investments)
$
Super, savings, investments, other property
$
Current market value of the family home
Home exempt if partner/dependent lives there
Higher care = higher government subsidy but also higher means-tested fees

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How to Use This Calculator

Tab "Cost Estimate"

Enter your annual income (pension + other), total assets (excluding the home), home value, whether a partner still lives in the home, and the care level needed. The calculator estimates the basic daily fee, means-tested care fee, accommodation payment (DAP equivalent), total monthly cost, and approximate government contribution. These are estimates only — Services Australia conducts the actual assessment.

Tab "RAD vs DAP"

Compare accommodation payment options. Enter the facility's RAD (Refundable Accommodation Deposit), the current MPIR rate, and how much lump sum you have available. See the full RAD option (refundable), full DAP (daily payment), a combination of both, and the opportunity cost of tying up capital in a RAD versus investing it.

Tab "Family Home"

Understand how the family home affects the means test. Enter the home value, whether a partner lives there, and your plans for the home (keep, sell, or rent). The calculator shows the assessed value, impact on means testing, and compares scenarios for each option.

The Formulas

Basic daily fee:
~$61.96/day ($1,859/mo) — applies to all residents

Deemed income from assets:
First $60,400 at 0.25% + remainder at 2.25%
Example: $300K assets = $60,400 x 0.25% + $239,600 x 2.25% = $151 + $5,391 = $5,542/yr

Means-tested care fee:
Based on assessable income + deemed income (complex taper)
Annual cap: ~$33,309 | Lifetime cap: ~$80,000

DAP (Daily Accommodation Payment):
DAP = RAD x MPIR / 365
Example: $400K RAD x 8.34% / 365 = $91.40/day ($2,782/mo)

Home assessment:
Partner in home: exempt ($0 assessed)
No one in home: capped at ~$200,000 (regardless of actual value)

All figures are approximate and based on FY 2025-26 rates. The means-tested care fee calculation is highly simplified — the actual assessment by Services Australia considers many additional factors. MPIR changes quarterly.

Example

Margaret — Age Pensioner, Single, Moving to Residential Care

Full age pension ~$28,500/yr. Super and savings: $150,000. Home value: $900,000 (no partner — vacant). Care level: medium. Facility RAD: $450,000.

Basic daily fee$1,859/mo
Home assessed at$200,000 (capped, actual value $900K)
Total assessable assets$350,000 ($150K + $200K home cap)
Deemed income~$6,667/yr
DAP if not paying RAD$102.82/day ($3,130/mo)

Margaret could sell her home and use $450K for the RAD (refundable), with the remaining proceeds as financial assets. However, selling replaces the $200K capped asset with $900K of fully assessable assets, potentially increasing her means-tested fee. A specialist aged care financial adviser can model both scenarios precisely.

Key Aged Care Rates — FY 2025-26

ItemRate / Limit
Basic daily fee~$61.96/day ($1,859/mo)
Means-tested fee annual cap~$33,309/yr
Means-tested fee lifetime cap~$80,000
MPIR (Max Permissible Interest Rate)~8.34% (changes quarterly)
Median RAD (national)~$400,000
Home asset cap (if vacant)~$200,000
Home (partner lives there)Exempt
Deeming rate (first $60,400)0.25%
Deeming rate (above $60,400)2.25%

Frequently Asked Questions

Yes. The Refundable Accommodation Deposit (RAD) is fully refundable when the resident leaves care or passes away. It must be refunded within 14 days. The provider can use the RAD for their business purposes while holding it, but it is guaranteed by the Australian Government. Some families use the RAD as an estate planning tool since the money is returned.
Yes. You can split the accommodation payment in any proportion between RAD (lump sum) and DAP (daily payment). For example, if the RAD is $400,000, you could pay $200,000 as RAD and the remaining $200,000 as DAP ($200,000 x 8.34% / 365 = $45.70/day). This flexibility lets you balance capital preservation with daily cash flow.
This is one of the biggest financial decisions in aged care and depends on many factors. Selling converts a capped asset ($200K) into fully assessable financial assets (the full sale price), which can increase means-tested fees. However, it eliminates maintenance costs and can fund a RAD. If a partner lives in the home, it's already exempt. Always seek specialist aged care financial advice before selling — the wrong decision can cost tens of thousands.
The Maximum Permissible Interest Rate (MPIR) is set by the Department of Health quarterly. It's used to calculate the DAP equivalent of a RAD: DAP = RAD x MPIR / 365. A higher MPIR means a higher daily payment. As of early 2026, the MPIR is approximately 8.34%. When comparing RAD vs DAP, consider that the MPIR can change every quarter, so DAP costs are not fixed.
Strongly recommended. Aged care fees involve complex interactions between the means test, asset treatment, home decisions, and Centrelink payments. A specialist aged care financial adviser (look for those accredited by the Aged Care Steps program) can model your specific situation and potentially save you tens of thousands over the care period. The typical advice fee is $3,000-$5,000, which is a fraction of the potential savings.

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