Aged Care Cost Calculator Australia 2026-27
Understanding the costs of aged care in Australia.
Estimate residential aged care costs using 2026-27 government rates — basic daily fee, Refundable Accommodation Deposit (RAD), Daily Accommodation Payment (DAP), and means-tested care fee.
Uses 2026-27 MPIR of 8.43%. Means-tested fee is estimated. Always confirm with My Aged Care.
Select the question that matches where you are right now.
Your result shows the estimated daily and annual cost of residential aged care based on your RAD, the current MPIR (8.43%), and your assessable assets. The RAD is fully refundable — it reduces your estate but is returned when you leave care.
Basic daily fee ($66.80) is fixed for everyone. DAP depends on your unpaid RAD amount. Means-tested fee depends on your income and assets assessed by Services Australia.
This is an estimate. Your actual means-tested fee requires a formal assessment by Services Australia. Extra services fees vary by facility and are not included unless you enter them in Standard mode.
Uses 2026-27 MPIR of 8.43% and basic daily fee of $66.80. Means-tested fee uses simplified asset calculation. All calculations run in your browser.
The three biggest drivers of your total cost are the RAD size (and whether you pay DAP), your assessable assets (affecting the means-tested fee), and any extra services fees the facility charges.
If the MPIR (8.43%) exceeds your investment return, paying the full RAD avoids ongoing DAP. On a $500k RAD, paying DAP costs $11.54/day ($4,212/yr) — money that could have been retained by paying the RAD upfront.
The means-tested fee is capped at $35,910/yr and $86,185 lifetime. Once the lifetime cap is reached, no further means-tested fees apply — important for longer stays.
Most assets are included: cash, investments, super (past preservation age), investment properties. Key exemption: the family home is generally exempt if a spouse or dependant lives there (otherwise capped at $201,231 in the assessment). Structuring assets before entry can significantly affect the means-tested fee — speak with an aged care financial adviser.
There are several legitimate strategies to reduce aged care costs — most effective when planned in advance of entering care.
Paying the full RAD eliminates the DAP entirely. On a $500k room, this saves $4,168/yr in ongoing fees — and the RAD is returned in full on exit. If your cash or liquid assets can cover the RAD, this is usually the most cost-effective choice.
If a spouse, dependent, or protected person lives in the family home, it is generally exempt from the asset assessment — reducing the means-tested care fee significantly. Taking action before the home is sold can preserve this exemption.
An aged care financial specialist can model the full cost of different entry strategies, including RAD vs DAP, asset restructuring, and super/pension interactions. The cost of advice is typically recovered many times over in fee savings.
Once you have an estimate of costs, these are the key next steps in the aged care entry process.
An Aged Care Assessment Team (ACAT) assessment is required before entering residential aged care. It determines your care needs and the level of support you qualify for. Request one through My Aged Care (myagedcare.gov.au) or your GP.
My Aged Care lists all approved facilities with room prices, star ratings, and vacancy information. Room prices vary widely — from $300k to $1M+ in major cities. You have the right to negotiate the RAD price with any facility.
Lodge a Request for a Combined Assets and Income Assessment with Services Australia to get your actual means-tested fee determination. This is needed before your fee is set — the estimate in this calculator is a guide only.
The three components of residential aged care fees in Australia
1. Basic daily fee
The basic daily fee is set by the Australian Government at 85% of the single Age Pension. For 2026-27 it is $66.80 per day ($24,382/yr). It applies to all residents and covers meals, utilities, laundry and basic care. It is not means-tested and cannot be waived.
2. Accommodation costs — RAD or DAP
You pay for your room via a Refundable Accommodation Deposit (RAD — lump sum, fully refunded on exit), a Daily Accommodation Payment (DAP — daily charge at the MPIR rate, currently 8.43%), or a combination. If you pay the full RAD, no DAP applies. If you pay partial RAD, DAP applies to the unpaid portion.
3. Means-tested care fee
Based on your income and assets as assessed by Services Australia. Applies when assessable assets exceed $186,000 (2026-27). Annual cap: $35,910. Lifetime cap: $86,185. Once the lifetime cap is reached, no further means-tested fees apply.
| Fee type | 2026-27 rate | Means-tested? |
|---|---|---|
| Basic daily fee | $66.80/day | No |
| DAP (at MPIR) | 8.43% p.a. of unpaid RAD | No |
| Means-tested fee | Calculated by Services Aus. | Yes |
| Extra services | Varies by facility | No |
Refundable Accommodation Deposit vs Daily Accommodation Payment
Refundable Accommodation Deposit (RAD)
The RAD is a lump sum paid to the aged care facility for your room. It is fully refunded when you leave — either to you or your estate. The maximum room price is set by each facility and published on My Aged Care. You can negotiate the price.
Daily Accommodation Payment (DAP)
Instead of (or in addition to) the RAD, you can pay a daily charge. The DAP rate is set by the government as the Maximum Permissible Interest Rate (MPIR) — currently 8.43% per annum. DAP = Unpaid RAD balance × 8.43% ÷ 365.
Which is better?
If you have sufficient liquid assets and your investment returns are below the MPIR (8.43%), paying the full RAD is usually better — you avoid the daily fee and get the full amount back on exit. If your assets are in high-performing investments, paying DAP and keeping the money invested may produce a better net outcome.
| RAD example | DAP cost | Annual |
|---|---|---|
| $300k RAD unpaid | $6.85/day | $2,500/yr |
| $450k RAD unpaid | $10.39/day | $3,792/yr |
| $600k RAD unpaid | $13.70/day | $5,001/yr |
| $800k RAD unpaid | $18.27/day | $6,668/yr |
How the means-tested care fee is calculated
Assets and income assessment
Services Australia assesses your income and assets to determine your means-tested care fee. The assessment includes most assets (investments, cash, property) but excludes the family home if a protected person (spouse, dependent) lives there. A $186,000 asset threshold applies below which no means-tested fee is charged.
Caps (2026-27)
The means-tested care fee is capped at $35,910 per year and $86,185 over your lifetime. Once the lifetime cap is reached, you pay no further means-tested fees regardless of your financial position. These caps are indexed annually.
Home exemption
Your family home is generally exempt from the asset assessment if your spouse or a dependent child lives there, or if you are assessed as likely to return home. If the home is included in the assessment, it is capped at $201,231 (2026-27) in the calculation.
How to plan for aged care costs — financial and family considerations
Start planning early
Residential aged care is one of the largest financial decisions many Australians face. Planning before a crisis gives you time to understand the options, compare facilities, and structure assets most effectively. The difference between a well-planned and unplanned entry can be tens of thousands of dollars.
Asset structuring
The timing and structure of asset sales, super drawdowns, and home sales can significantly affect your means-tested care fee. Speaking with an aged care financial specialist before entering care (or before selling the family home) is strongly recommended.
My Aged Care
The government portal myagedcare.gov.au lists all approved facilities and their room prices. You can compare facilities, check star ratings, and request an ACAT assessment. An ACAT (Aged Care Assessment Team) assessment is required before entering residential care.
❓ Frequently asked Frequently asked questions
What does residential aged care cost in Australia per year?
The minimum is the basic daily fee ($66.80/day = $24,382/yr in 2026-27) if you have no assessable assets above the threshold and pay the full RAD. Most residents pay $80–$200/day ($29,000–$73,000/yr) when accommodation and means-tested fees are included.
Is the RAD refundable if my parent passes away?
Yes. The Refundable Accommodation Deposit is returned in full to the estate within 14 days of the resident's departure from care (whether by death or transfer). The facility may deduct outstanding fees owed, but the RAD itself cannot be retained.
What assets are included in the means-tested assessment?
Most assets are included: bank accounts, shares, super (if past preservation age), investment properties, cars, and boats. Exemptions include the family home if a protected person lives there (capped at $201,231 if included), prepaid funeral bonds up to $14,925, and some life insurance surrender values.
Can I choose to pay DAP instead of RAD?
Yes. You can pay the full RAD (no ongoing DAP), full DAP (no lump sum), or a combination. The facility must accept any combination you choose. If you cannot afford the RAD, the facility cannot refuse you — they must accept a DAP instead.
Where these figures come from
Savings and interest figures on this page are drawn from the Reserve Bank of Australia (cash rate and published deposit averages), APRA (the deposit-taker regulator), and ASIC MoneySmart (consumer guidance).
- RBA cash rate — RBA — Cash Rate.
- Deposit interest-rate data — RBA — Retail Deposit and Investment Rates (F4).
- Financial Claims Scheme (deposit guarantee up to $250k) — APRA — Financial Claims Scheme.
- Compound interest & savings strategy — ASIC MoneySmart — Saving.
- Inflation & CPI — ABS — Consumer Price Index.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.