Navy Retirement Calculator

Navy Retirement Pension Calculator

Legacy High-3 (2.5% Multiplier) Blended Retirement System (2.0% Multiplier)

Do not include BAH, BAS, or special pays.

Your Estimated Retirement Benefit

Note: This calculation is an estimate before taxes and SBP deductions.

function calculateNavyRetirement() { var system = document.getElementById('ret-system').value; var years = parseFloat(document.getElementById('service-years').value); var pay = parseFloat(document.getElementById('basic-pay').value); var resultDiv = document.getElementById('retirement-result'); var monthlyOut = document.getElementById('monthly-output'); var annualOut = document.getElementById('annual-output'); if (isNaN(years) || isNaN(pay) || years < 0 || pay < 0) { alert("Please enter valid positive numbers for years of service and basic pay."); return; } var multiplier = 0; if (system === 'high3') { multiplier = 0.025; } else { multiplier = 0.020; } var percentage = (years * multiplier) * 100; var monthlyPension = pay * (years * multiplier); var annualPension = monthlyPension * 12; monthlyOut.innerHTML = "$" + monthlyPension.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " / month"; annualOut.innerHTML = "Annual Benefit: $" + annualPension.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " (" + percentage.toFixed(1) + "% of base pay)"; resultDiv.style.display = 'block'; }

Understanding Your Navy Retirement Pay

Planning for life after the Navy requires a clear understanding of how your pension is calculated. Depending on when you joined the fleet, you likely fall under one of two main retirement systems: the Legacy High-3 System or the Blended Retirement System (BRS).

1. Legacy High-3 System

The High-3 system is available to Sailors who entered service before January 1, 2018. It offers a higher fixed pension but does not include the government-matched Thrift Savings Plan (TSP) contributions found in the BRS.

The Formula: 2.5% × Years of Service × Average of Highest 36 Months of Basic Pay.

2. Blended Retirement System (BRS)

The BRS became the default system for all Sailors joining after January 1, 2018. While the pension multiplier is lower, the BRS provides automatic and matching TSP contributions, as well as "Mid-Career Continuation Pay."

The Formula: 2.0% × Years of Service × Average of Highest 36 Months of Basic Pay.

Key Factors Influencing Your Pension

• Years of Service: The more years you serve, the higher your multiplier. For example, 20 years under High-3 equals 50% of your base pay, while 30 years equals 75%.
• High-3 Average: This is calculated using only your "Basic Pay." It specifically excludes allowances like Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).
• Cost of Living Adjustments (COLA): Navy retirement pay is adjusted annually to account for inflation, helping maintain your purchasing power throughout retirement.

Calculation Example

Let's look at a realistic scenario for a Chief Petty Officer (E-7) retiring at 20 years of service under the BRS system:

Estimated High-3 Pay Average	$5,500.00
Years of Service	20
Multiplier (BRS)	40% (2.0% x 20)
Monthly Pension	$2,200.00

Frequently Asked Questions

Does this calculator include the Survivor Benefit Plan (SBP)?
No. The SBP is an optional insurance plan that provides a portion of your retirement pay to your beneficiaries. Choosing SBP will typically reduce your gross monthly pay by approximately 6.5%.

When do I receive my first retirement check?
Generally, retirement pay starts 30 days after your official retirement date. It is paid on the first business day of the following month.

Is Navy retirement pay taxable?
Yes, military retirement pay is subject to Federal Income Tax. State tax laws vary; some states (like Florida or Texas) have no income tax, while others exempt military retirement pay entirely or partially.