Using the Army Retirement Calculator
Understanding your future financial security is critical for Soldiers planning their transition to civilian life. Our army retirement calculator provides an accurate estimate of your lifetime pension benefits based on the two primary systems currently in use: the legacy High-36 system and the newer Blended Retirement System (BRS).
To get the most accurate results, you will need your High-36 average basic pay. This is the average of the highest 36 months of basic pay you received during your service, which is usually your final three years.
- Retirement Plan System
- Choose High-36 if you entered service before January 1, 2018, and did not opt into BRS. Choose BRS if you entered after that date or manually opted in.
- Years of Service
- The total number of years served on active duty. For Reserves/National Guard, this is calculated based on retirement points.
- High-3 Average Basic Pay
- The average of your highest 36 months of base pay (not including BAH, BAS, or special pays).
How Army Retirement is Calculated
The formula for a military pension is based on your length of service and a specific multiplier determined by your retirement plan. The core formula used by our army retirement calculator is:
Monthly Pension = (Years of Service) × (Multiplier) × (High-36 Average Basic Pay)
- High-3 Multiplier: Fixed at 2.5% per year of service. A 20-year retirement equals 50% of base pay.
- BRS Multiplier: Fixed at 2.0% per year of service. A 20-year retirement equals 40% of base pay, supplemented by TSP matching.
- Years of Service: Calculated to the nearest month for active duty.
Military Retirement Examples
Example 1: High-36 Retirement (E-7)
Consider an E-7 retiring with exactly 20 years of service under the High-36 system. If their average basic pay for the highest 36 months was $5,200:
- Multiplier = 2.5% per year
- Total Percentage = 20 × 0.025 = 50%
- Monthly Pay = $5,200 × 0.50
- Result = $2,600.00 per month
Example 2: Blended Retirement System (O-5)
Consider an O-5 retiring with 22 years of service under the BRS system. If their average high-3 basic pay was $9,800:
- Multiplier = 2.0% per year
- Total Percentage = 22 × 0.020 = 44%
- Monthly Pay = $9,800 × 0.44
- Result = $4,312.00 per month
Frequently Asked Questions
What is the Cost of Living Adjustment (COLA)?
COLA is an annual increase in retired pay based on the Consumer Price Index (CPI). This ensures that your purchasing power remains stable despite inflation. Our army retirement calculator allows you to see current values, but COLA will increase these numbers over time.
How do Reserve points affect the calculation?
For National Guard and Reserve Soldiers, "Years of Service" for pay purposes is determined by dividing total retirement points by 360. For example, 3,600 points equals 10 "years" in the retirement formula, even if the Soldier served 20 calendar years.
When can I start receiving my Army pension?
Active duty Soldiers generally begin receiving retired pay immediately upon retirement (typically after 20 years). Reserve component Soldiers usually begin receiving pay at age 60, though certain deployments can reduce this age requirement.