Military Retirement Pay Calculator
Estimate your monthly pension based on service years and pay grade.
*Estimation before taxes, SBP premiums, and VA waivers. Actual amounts may vary based on exact commissioning dates and individual circumstances.
How Military Retirement Pay is Calculated
Calculating your military retirement pay depends primarily on when you entered the service and which retirement system you are enrolled in. The two most common systems today are the High-3 (Legacy) system and the Blended Retirement System (BRS).
The High-3 (Legacy) System
If you entered service between September 8, 1980, and December 31, 2017, and did not opt into the BRS, you are likely under the High-3 system. The formula is:
- 2.5% × Years of Service × High-3 Average Base Pay
For example, a member retiring with 20 years of service would receive 50% (20 x 2.5%) of their highest 36 months of base pay.
The Blended Retirement System (BRS)
Members who entered service after January 1, 2018, or those who opted in, use the BRS. This system combines a smaller pension with TSP matching and mid-career continuation pay. The pension formula is:
- 2.0% × Years of Service × High-3 Average Base Pay
A member retiring with 20 years under BRS would receive 40% (20 x 2.0%) of their highest 36 months of base pay.
Key Factors Impacting Your Pension
- High-3 Average: This is the average of your highest 36 months of basic pay. It is typically the final three years of service.
- Years of Service: Only creditable years count. For active duty, this is straightforward; for Reserve/Guard, it is based on retirement points.
- VA Disability: If you receive VA disability, your military pension might be reduced (offset) unless you qualify for Concurrent Receipt (CRDP) or Combat-Related Special Compensation (CRSC).
- Cost of Living Adjustments (COLA): Military retired pay is protected against inflation through annual COLA increases.
Example Calculation
Consider an E-7 retiring after 22 years of service under the High-3 plan. If their average base pay for the highest 36 months was $5,200:
- Multiplier: 22 years × 2.5% = 55%
- Monthly Pay: $5,200 × 0.55 = $2,860
- Annual Total: $34,320
Frequently Asked Questions
When can I start receiving pay?
Active duty members typically receive pay immediately upon retirement (usually after 20 years). Reserve and Guard members typically must wait until age 60, though certain deployments can reduce that age.
Is retirement pay taxable?
Yes, federal income tax is applied to military retirement pay. State tax varies; many states exempt military pensions entirely, while others tax them as regular income.