Aged Care Fees Calculator 2025
Estimate residential aged care costs in minutes with 2025 fee settings. Compare basic daily fees, means-tested care fees, and accommodation options (RAD vs DAP) before speaking with providers.
Basic Daily Fee
$61.96
Paid by everyone
Maximum Means-Tested
$321.44/day
Before annual cap
Annual Cap
$33,309
Means-tested fees
Lifetime Cap
$79,942
Means-tested fees
How to Use This Calculator
- 1. Select your relationship and home ownership details.
- 2. Enter your annual income and assessable assets.
- 3. Review your estimated daily, weekly, and annual costs.
Accommodation Reference
MPIR: 8.34%
RAD: Refundable lump sum
DAP: Ongoing daily payment
Disclaimer: This tool provides a guide only, not financial advice. Final fees are set by Services Australia assessments and each provider's official pricing.
Your Situation
Aged Care Fees in Plain English
Most people entering residential aged care pay three main cost types: a basic daily fee, a means-tested care fee, and an accommodation charge. This page helps you understand each one before you make financial decisions.
How Aged Care Fees Are Calculated in Australia
Residential aged care costs are made up of multiple components, and each component has a different purpose. The basic daily fee contributes to everyday living costs and is paid by everyone, while the means-tested care fee is based on your financial capacity as assessed by Services Australia.
Accommodation is separate from care fees. You can usually pay this as a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a mix of both. Choosing the right approach depends on liquidity, estate planning, and whether keeping the family home is a priority.
RAD vs DAP: Which Option Fits Your Situation?
A full RAD can reduce ongoing daily payments but requires access to a large lump sum. A full DAP preserves your capital upfront but increases your regular outgoings. Many families choose a combination strategy to balance cash flow and long-term asset protection.
This calculator gives a practical estimate so you can compare these options early. It is especially useful before meeting an aged care provider or financial adviser, because it helps you ask better questions with realistic numbers.
Means-Tested Fee Caps and Why They Matter
Means-tested care fees are capped annually and over a lifetime. These caps are designed to prevent unlimited care-fee exposure and improve predictability for older Australians and their families.
Even when caps are reached, other charges may still apply, such as the basic daily fee and accommodation costs. That is why it is important to view your total funding strategy, not just one fee in isolation.
Frequently Asked Questions
Aged care costs in Australia 2025 consist of multiple components:
- Basic Daily Fee: $61.96/day ($22,615/year) - everyone pays this
- Means Tested Care Fee: $0-$321.44/day based on your income and assets
- Accommodation: Either RAD (lump sum, refundable) or DAP (daily payment)
Total costs typically range from $22,615/year (pension-level income, low assets) to over $100,000/year for those with significant means.
The means tested care fee is an additional daily fee based on your income and assets. Services Australia calculates this using:
- Income test: 50% of income over $32,019/year
- Assets test: 17.5% per year of assets over $201,231 (capped)
- The higher of the two tests applies
- Maximum fee: $321.44/day ($117,326/year before caps)
Annual and lifetime caps protect you from unlimited fees.
The Basic Daily Fee for residential aged care in 2025 is:
- $61.96 per day
- $433.72 per week
- $22,615.40 per year
This fee is set at 85% of the single basic Age Pension and applies to everyone in residential aged care, regardless of income or assets. It contributes to daily living costs like meals, laundry, and utilities.
RAD (Refundable Accommodation Deposit):
- Lump sum payment (typically $200,000-$800,000+)
- Fully refundable when you leave care
- Can use proceeds from selling your home
- No ongoing accommodation costs
DAP (Daily Accommodation Payment):
- Daily rental payment
- Calculated as RAD × (MPIR ÷ 365)
- Current MPIR: 8.34% (Maximum Permissible Interest Rate)
- Example: $400,000 RAD = $91.40/day DAP
You can pay any combination of RAD and DAP that suits your finances.
Yes, means-tested care fees are capped at two levels:
- Annual cap (2025): $33,309.14 - Maximum means-tested fees in any 12-month period
- Lifetime cap (2025): $79,941.94 - Maximum means-tested fees you'll ever pay
Once you reach either cap, you stop paying means-tested care fees (you still pay basic daily fee and accommodation). These caps help protect your assets over time and make aged care more predictable.
The family home is treated differently depending on circumstances:
- Protected person lives there: Home is fully exempt (spouse, dependent child, carer who lived there 2+ years)
- No protected person: Home is capped at $201,231.20 for assets test purposes
- Rented out: Rental income counts in income test
You don't have to sell your home to pay for aged care - there are options like renting it out, RAD from other assets, or combination payments.
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