Care Home Cost Calculator
Estimate care costs and means-testing. See if you're self-funded, means-tested or council-funded.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Residential Care — You Pay
£800.00/week
£41,600.00/year total cost
Self-funded (capital over £23,250)
Your capital lasts ~7.2 years at this rate
Capital over £23,250: self-funded. Below £14,250: council-funded. Between: means-tested (£1/week per £250 above £14,250). Property excluded if spouse still living there or you receive home care.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Care home costs in England are means-tested by the local authority. If your total assessable assets exceed the upper capital limit of £23,250, you are fully self-funded and pay the full weekly care fee. Below £14,250, the local authority covers most costs and you contribute only from income. Between the two limits a sliding scale applies.
Your home is included in the means test when you enter permanent residential care and the property is empty — unless a spouse, civil partner, dependent child under 18, or a qualifying carer still lives there. If included, it often creates a large notional asset. A Deferred Payment Agreement (DPA) allows the council to fund your care, taking a legal charge on the property to be repaid when it is eventually sold.
The proposed £86,000 lifetime care cap was originally set for October 2023, delayed to 2025, and subsequently indefinitely postponed. As of April 2026, the £23,250 upper and £14,250 lower capital thresholds remain in force in England.
UK care cost averages 2026. Residential care: £900-£1,400/week (£47k-£73k/year). Nursing care (with medical needs): £1,100-£1,700/week. London and South East: 20-40% above national average. Premium London nursing homes: £2,500-£4,500/week (£130-£234k/year). Home care: £20-£35/hour for 1-hour visits; £200-£450/day for live-in care. Average length of stay in residential care: 30 months — total typical lifetime cost £150,000-£250,000.
UK care funding thresholds 2026. Capital over £23,250 (England/NI): full self-funding required. Capital £14,250-£23,250: tariff income £1/week per £250 capital. Capital under £14,250: capital ignored, only income counted. Scotland: free personal care for over-65s (£248.70/week non-residential) + nursing care if needed. Wales: capital threshold £50,000 (raised April 2024). Northern Ireland: same as England. Property: home value DISREGARDED if spouse/disabled child/relative over 60 still lives there.
NHS Continuing Healthcare (CHC) — fully NHS-funded. If primary need is HEALTH (not social care): NHS funds 100% of care. Assessment: Decision Support Tool covering 12 domains (mobility, cognition, behaviour, continence, etc.). Criteria: 'primary health need' — challenging to achieve. Successful CHC: no income cap, no capital test. Massive financial difference. Apply via GP referral. Most refused first time — appeal process. Independent advocates (e.g. Care to be Different, Beacon CHC) £1,500-£5,000 but often successful at appeal.
Deferred Payment Agreement (DPA). Council loans you care costs against your home. No need to sell during your lifetime. Council reclaims from estate at death/sale. Interest charged: 6%+ typically. Setup fee £400-£600. Eligibility: own property + need residential care + non-resident relatives. Useful if: property market depressed; want to avoid quick sale; spouse needs to remain (DPA reduces capital while alive). Caution: debt mounts quickly + interest erodes inheritance.
Care costs reform — perpetually delayed. Dilnot Commission (2011) recommended £35,000 lifetime cap on care costs. Implementation delayed multiple times. Cap revised to £86,000 under 2021 Health and Care Act. Original implementation October 2023 — delayed to October 2025. October 2025 implementation also postponed indefinitely (Labour government 2024). As of 2026: existing means-test thresholds (£23,250 upper / £14,250 lower England) remain. Long-term care funding remains UK's biggest unresolved social policy issue.
Example: £40,000 savings, partner still living in family home
- Assessable assets: £40,000 savings only (property excluded — partner in residence)
- £40,000 > £23,250 upper limit → fully self-funded
- Weekly residential care fee: £1,200 (national average)
- After approx 14 weeks, assets fall to £23,250 and local authority funding begins
Frequently Asked Questions
- What is the care home means-test threshold in England?
- In England, if your total assessable assets exceed £23,250 (the upper capital limit), you are fully self-funded and must pay the full cost of your care. Below £14,250, the local authority meets most of the cost. Between the two limits, a sliding scale applies where you contribute £1 per week for every £250 of assets above £14,250.
- Is my home included in the care home means test?
- Your home is included in the means test if it will be empty when you enter permanent residential care. However, it is disregarded if a spouse or civil partner, a dependent child under 18, or a qualifying carer lives there. Even if included, a Deferred Payment Agreement (DPA) with the council can allow you to delay selling until after death.
- What happened to the £86,000 care cost cap?
- The Dilnot Commission proposed a lifetime care cap of £86,000, originally due to take effect in October 2023. This was delayed to October 2025 and has since been indefinitely postponed. As of April 2026, the existing means-test thresholds (£23,250 upper, £14,250 lower) remain in force with no cap in place.