Military Retirement Pay Calculator
This calculator helps estimate your monthly retired military pay. It's based on the High-36 system for retirees after September 8, 1980.
E-1
E-2
E-3
E-4
E-5
E-6
E-7
E-8
E-9
W-1
W-2
W-3
W-4
W-5
O-1
O-2
O-3
O-4
O-5
O-6
O-7
O-8
O-9
O-10
Your estimated monthly retirement pay will appear here.
Understanding Your Military Retirement Pay
Retiring from military service is a significant achievement, and understanding your retirement pay is crucial for financial planning. Most servicemembers who entered service after September 7, 1980, are covered by the "High-36" retirement system. This system calculates your retired pay based on your average basic pay over your highest 36 months of active duty service, multiplied by a percentage based on your years of service.
The High-36 System Explained:
The formula for calculating High-36 retired pay is:
Monthly Retired Pay = (Average of Highest 36 Months of Base Pay + Average of Highest 36 Months of Special Pays & Allowances) * Years of Service Percentage
Key Components:
- Years of Service: This is the total number of full years you served on active duty. For retirement, a minimum of 20 years is typically required.
- Highest 36 Months of Pay: This refers to the average monthly base pay you received over the 36 months preceding your retirement. It also includes certain special pays and allowances, like Basic Allowance for Subsistence (BAS), Basic Allowance for Housing (BAH), and hazardous duty pay. The calculator uses your *estimated average* of these amounts over the last 36 months.
- Years of Service Percentage: This is calculated as 2.5% for each full year of service. For example, 20 years of service yields a 50% multiplier (20 * 2.5%), and 30 years yields a 75% multiplier (30 * 2.5%). There is a cap of 75% for retired pay calculation.
How to Use the Calculator:
To get an accurate estimate:
- Years of Service: Enter the total number of full years you have served or will serve on active duty.
- Highest Pay Grade: Select your highest achieved pay grade (e.g., E-7, O-4). This is used to determine your base pay for estimation purposes, though the calculator primarily relies on your provided average base pay.
- Estimated Average Monthly Base Pay (Last 36 Months): This is the most critical input. You'll need to estimate your average monthly *base pay* over your final 36 months of service. You can consult pay charts from your service years or your Leave and Earnings Statement (LES) for guidance.
- Estimated Average Monthly Special Pays & Allowances (Last 36 Months): Include recurring payments like BAS, BAH, and any hazardous duty pay that you received consistently over the last 36 months. This also requires estimation.
Clicking "Calculate My Retirement Pay" will provide an estimated monthly amount. Remember, this is an approximation. Your final retired pay will be determined by official military pay records at the time of your retirement.
Important Considerations:
- Taxes: Retired military pay is subject to federal income tax, and in some cases, state income tax (depending on the state).
- Cost of Living Adjustments (COLA): Once retired, your pay typically receives annual Cost of Living Adjustments to help it keep pace with inflation.
- Other Retirement Systems: This calculator is for the High-36 system. Older systems (like High-3 or final basic pay) and newer systems (like the Blended Retirement System, which is optional for those who entered service between 2000 and 2017) have different calculation methods.
This tool is designed to give you a solid understanding of potential retirement income, enabling better long-term financial planning. Always consult official military retirement resources and financial advisors for definitive information.