Aged Care · Accommodation Costs

RAD to DAP Calculator Australia

Convert an aged care room price between a lump sum refundable accommodation deposit and a daily accommodation payment — including any split between the two — at the maximum permissible interest rate that applies to you.

MPIR 8.43%Any RAD/DAP split2.00% retention

01 —INPUTS

What do you know?

Providers must publish both. Start from whichever figure the home quoted you.

Advertised room price (RAD)

The lump sum the home advertises for the room.

Date the room price was agreed (optional)

Sets which quarterly MPIR applies. Defaults to the current quarter (8.43%).

Share paid as a lump sum: 50% RAD / 50% DAP

You can pay any combination. A part RAD reduces the daily payment proportionally.

02 —RESULTS

Awaiting input

Enter an advertised room price to convert between a lump sum and a daily payment

Next best steps

Aged care fees by asset levelSee both regimes from $100k to $1.5M in assessable assets Full Age Pension estimateRun income and assets tests together with basic eligibility Assets testMap assets between the full-rate threshold and part-pension cut-off Retirement action planPrioritise Age Pension, super and drawdown actions

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MPIR history: 2025-10-01 7.61% · 2026-01-01 7.65% · 2026-04-01 7.96% · 2026-07-01 8.43%. The rate resets quarterly on 1 January, 1 April, 1 July and 1 October.

How it works

RAD, DAP and the Interest Rate That Links Them

Every aged care home has to publish its room prices as a lump sum refundable accommodation deposit (RAD) and as an equivalent daily accommodation payment (DAP). The two are two views of the same price, linked by a government-set interest rate.

That rate is the maximum permissible interest rate. A provider cannot use a higher one. The rate that governs your agreement is the one current on the day you agree the room price, and it stays fixed for you afterwards — which is why this calculator lets you enter the agreement date rather than always using today's quarter.

Full daily payment room price x MPIR / 365

Reduced daily payment after a part lump sum (room price − RAD paid) x MPIR / 365

MPIR reset dates 1 January, 1 April, 1 July, 1 October

Which MPIR applies The one current on the day you agree the room price

If you pay a lump sum you can ask the provider to draw your daily fees out of it. That is convenient, but the balance falls, so the daily payment rises to keep the two sides equivalent.

Rate history

Recent Maximum Permissible Interest Rates

The MPIR is reset each quarter. A room price agreed in an earlier quarter converts at that quarter's rate for the whole of your stay, so the history matters when you are checking an existing agreement rather than shopping for a new room.

Quarter	MPIR	Base interest rate	$550,000 room as a DAP
2026-07-01 to 2026-09-30	8.43%	3.25%	$127.03 /day
2026-04-01 to 2026-06-30	7.96%	3.25%	$119.95 /day
2026-01-01 to 2026-03-31	7.65%	2.75%	$115.27 /day
2025-10-01 to 2025-12-31	7.61%	2.75%	$114.67 /day
2025-07-01 to 2025-09-30	7.78%	2.25%	$117.23 /day
2025-04-01 to 2025-06-30	8.17%	2.25%	$123.11 /day

The base interest rate is a separate, lower rate used mainly for interest on a lump sum refund during the legislated refund period, and for pre-2014 accommodation bond agreements.

Retention

The Lump Sum Is No Longer Fully Refundable

This is the change most people miss. For residents on the 1 November 2025 accommodation arrangements, providers must deduct a retention amount from the lump sum. The rate is set in legislation at 2.00% a year, applied as a daily rate to the current balance, and it stops after 5 years counted from the day the deposit was first paid.

Because every deduction reduces the balance the next one is calculated on, the total is slightly less than a flat 10%. On a $550,000 deposit:

Year in care	Retention deducted	Cumulative	Refundable balance
Year 1	$10,900	$10,900	$539,100
Year 2	$10,684	$21,583	$528,417
Year 3	$10,472	$32,055	$517,945
Year 4	$10,264	$42,320	$507,680
Year 5	$10,061	$52,381	$497,619

Retention must be deducted at least once every 3 months and no more than once a month; the table above assumes the most frequent cadence. You cannot be asked to top the deposit back up to cover it, and it cannot be charged after you permanently leave care.

Retention does not apply to residents on the 1 July 2014 accommodation arrangements, even if they pay a deposit after 1 November 2025, and it does not apply to someone who moves across from the pre-2014 arrangements.

FAQ

How do you convert a RAD into a DAP?

The formula is set in the Aged Care Rules 2025: daily accommodation payment = room price x maximum permissible interest rate / 365. At the current MPIR of 8.43%, a $550,000 room costs $127.03 a day. Note the divisor is 365, not the 364 used to express a means tested amount as a daily figure.

What is the maximum permissible interest rate right now?

The MPIR is 8.43% for 2026-07-01 to 2026-09-30. The Department of Health, Disability and Ageing resets it quarterly on 1 January, 1 April, 1 July, 1 October. The rate that applies to you is the one current on the day you agree the room price — it does not move afterwards, even when the published rate changes.

Can I pay part RAD and part DAP?

Yes, in any combination you choose. The provider recalculates the daily payment on the outstanding balance only: (room price − RAD paid) x MPIR / 365. Paying $275,000 of a $550,000 room halves the daily payment from $127.03 to $63.51. You can also ask the provider to draw the daily payment out of the lump sum you have already paid, though the daily amount then rises as the balance falls.

Is a RAD refunded in full?

Not for residents on the 1 November 2025 accommodation arrangements. Providers must deduct a retention amount calculated daily at 2.00% a year, for a maximum of 5 years from the day the deposit was first paid. Because each deduction reduces the balance, a $550,000 deposit loses about $52,381 over the full 5 years rather than a flat 10%. You cannot be asked to top the deposit back up. Residents on the 1 July 2014 accommodation arrangements keep the full refund.

Is there a limit on how much a home can charge for a room?

A provider can charge up to $758,627 without approval from the Independent Health and Aged Care Pricing Authority; above that, approval is required. Separately, if you pay any part of your accommodation by refundable deposit you must be left with at least $64,500 in assets.

Does a RAD or a DAP work out cheaper?

Mathematically the two are equivalent at the MPIR — that is the whole point of the conversion. The real difference is what the money would otherwise earn or cost you, and how each option is treated in the aged care means assessment and the Age Pension assets test: a RAD is an exempt asset for the Age Pension but is counted in the aged care means assessment, while money left outside is counted by both. That trade-off is genuinely personal, so get financial advice before choosing.

Does the daily payment change over time?

Yes. Daily accommodation payments for residents on the 1 November 2025 accommodation arrangements are indexed twice a year, on 20 March and 20 September, using the published DAP index numbers. The MPIR locked in at agreement does not change, but the indexed amount does.

Whether you pay a room price at all depends on your means assessment. Run the aged care fee calculator to see if you are fully supported, partially supported, or negotiating a room price.

Aged care toolkit

Work through the rest of the cost picture

Aged Care Fee Calculator Run the means assessment for both fee regimes from your income, assets and home. Aged Care Fees by Asset Level See what both regimes charge from $100k to $1.5 million in assets. Age Pension Calculator The pension is counted as income in the aged care means assessment. Gifting & Deprivation Gifts above the free areas stay in your assessable assets for 5 years. Deeming Calculator Deemed income on financial assets flows straight into the means assessment.

Tax Accuracy & Sources

Reviewed: 15 August 2026 · Tax year: 2026-27

This calculator applies the legislated conversion room price x MPIR / 365 and the 2.00% a year RAD/RAC retention for up to 5 years. It does not model daily accommodation payment indexation on 20 March and 20 September, drawing daily fees down from a paid deposit, interest on a late refund, hardship assistance, or the pre-1 July 2014 accommodation bond and charge arrangements. Room prices themselves are negotiated with the provider and are not published data.