Military Retirement Pension Calculator
Your Estimated Monthly Retirement Pay:
Your Estimated Annual Retirement Pay:
Note: This is a gross estimate before taxes, SBP premiums, and VA waivers.
How Military Pension is Calculated
Understanding your future military retirement pay is essential for long-term financial planning. The Department of Defense generally uses two main systems for active-duty members: the Legacy High-3 system and the Blended Retirement System (BRS).
The core of the calculation relies on your High-3 Average. This is the average of the highest 36 months of basic pay you received during your career. Usually, these are your final three years of service when your rank and time-in-service are at their peak.
The Formulas
Depending on when you entered the service, your multiplier will differ:
- Legacy High-3: 2.5% × Years of Service × High-3 Average
- Blended Retirement System (BRS): 2.0% × Years of Service × High-3 Average
An E-7 retiring at 20 years under the Legacy High-3 system with a High-3 average of $5,200:
Calculation: 20 years × 2.5% = 50% multiplier.
50% of $5,200 = $2,600 per month.
Key Factors Affecting Your Pension
1. Years of Service: Every additional year served increases your multiplier. For those under the Legacy system, 20 years equals 50%, while 30 years equals 75%.
2. Cost of Living Adjustments (COLA): Military pensions are protected against inflation. Each year, your monthly pay is adjusted based on the Consumer Price Index to maintain purchasing power.
3. Survivor Benefit Plan (SBP): If you choose to provide a portion of your pension to your beneficiaries after your death, a premium (usually around 6.5%) is deducted from your gross pay.
4. Disability Offsets: If you receive VA disability compensation, your military pension may be reduced (offset) unless you qualify for Concurrent Receipt (CRDP or CRSC).
Blended Retirement System (BRS) vs. High-3
The BRS was introduced for those entering after January 1, 2018. While the pension multiplier is lower (2.0% instead of 2.5%), the BRS includes government matching contributions to your Thrift Savings Plan (TSP) and a mid-career "Continuation Pay" bonus. This ensures that even those who do not stay for a full 20 years leave the military with some retirement savings.