Military Retirement Calculator

Q: What is the minimum years of service needed to retire from the military?

Most active duty service members need at least 20 years of service to qualify for regular military retirement. 2 The exception is a Medical (Chapter 61) retirement , which does not require 20 years of service. 3 It applies if the military finds you medically unfit for continued service with a DoD disability rating of at least 30%. 1

Q: Which retirement plan am I under?

Your plan depends on when you joined: Before Sep 8, 1980: Final Pay Sep 8, 1980 – Jul 31, 1986: High-3 On or after Aug 1, 1986 and before Jan 1, 2003: High-3 (or CSB/REDUX if you elected the career status bonus) Jan 1, 2003 – Dec 31, 2017: High-3 (unless you opted into BRS) Jan 1, 2018 or later: Blended Retirement System (BRS) 1 Enter your service entry date in the calculator and it will suggest the right one for you.

Q: What does High-3 mean?

High-3 means the average of your highest 36 months of base pay . 1 For most people, this is the last three years of service since pay usually goes up over time. 1 This average is used as the starting number before the retirement multiplier is applied.

Q: How is the retirement multiplier calculated?

For Final Pay and High-3 plans, the multiplier is 2.5% × years of service . 1 So 20 years = 50%, and 30 years = 75%. 1 For BRS , the multiplier is 2.0% × years of service . 1 So 20 years = 40%, and 30 years = 60%. 1 For CSB/REDUX , the High-3 multiplier is reduced by one percentage point for each year of service under 30, so 20 years = 40%, and it is restored at age 62. 1 A Medical retirement uses the higher of your years-of-service multiplier or your disability percentage, and the disability percentage is limited to 75%. 4

Q: What is the Survivor Benefit Plan (SBP)?

The SBP is an optional program that pays a monthly annuity to your eligible beneficiaries after you die, and the amount is a percentage of your retirement pay. 6 Beneficiaries can include your spouse or children. 7 If you elect full coverage, 6.5% of your gross retirement pay is taken out each month as a premium. For members who first joined on or after March 1, 1990 and are not retired for disability, the law sets the premium at 6½ percent of the base amount. 5 The calculator deducts this amount when showing your net pay.

Q: What is COLA and how does it affect my retirement pay?

COLA stands for Cost of Living Adjustment . Each year, the government increases your retirement pay to keep up with inflation. 1 The calculator uses your estimated COLA rate to project how your pay grows year after year. A typical estimate is 2% to 3% per year.

Q: Is military retirement pay taxable?

Yes. If your retirement pay is based on age or length of service, it is taxable as a pension for federal income tax. 7 Some states also tax it, while others do not. The calculator uses the estimated tax rate you enter to show your approximate take-home pay. Check your state's rules to get a more accurate number.

Q: What happens if I serve more than 20 years?

Your multiplier keeps going up. Each extra year adds 2.5% (or 2.0% under BRS) to your retirement percentage. 1 For example, under High-3, 24 years gives you 60% and 30 years gives you 75%. 1 Serving longer means a bigger monthly check.

Q: Can I collect both military retirement pay and VA disability compensation?

In many cases, yes. If you have a VA disability rating of 50% or higher , you can receive both through a program called Concurrent Retirement and Disability Pay (CRDP). 3 If you have a combat-related disability rated by the VA, you may be eligible for Combat-Related Special Compensation (CRSC). 2 This calculator does not calculate VA disability pay separately.

Q: What is CSB/REDUX and should I choose it?

CSB/REDUX was an option for members who joined on or after August 1, 1986, and before January 1, 2003. 1 You received a $30,000 bonus at 15 years of service in exchange for a lower retirement multiplier. 1 Most financial advisors say the reduced pension costs more in the long run than the bonus is worth. Eligibility to elect it ended on December 31, 2017. 1

Military Retirement Calculator

Introduction

If you served in the military and plan to retire, you need to know how much money you will get each month. This Military Retirement Calculator helps you figure that out. Just enter your pay grade, years of service, and retirement plan, and the tool calculates your retirement pay. It works for all four Active Duty retirement systems: Final Pay, High-3, CSB/REDUX, and the Blended Retirement System (BRS).¹ It also handles Medical (Chapter 61) retirements.

The calculator shows your gross monthly retirement pay, your net pay after taxes and Survivor Benefit Plan (SBP) costs, and a year-by-year projection that accounts for COLA raises. This tool gives you a clear picture of your military retirement income so you can plan ahead with confidence.

How to Use Our Military Retirement Calculator

Enter your service details below to estimate your monthly and annual military retirement pay. The calculator will show your gross pay, net pay after taxes, and a year-by-year projection of your income in retirement.

Service Entry Month: Pick the month you first entered military service. This helps determine which retirement plan applies to you.

Service Entry Year: Enter the year you joined the military. The calculator uses this date to suggest the correct retirement system for your situation.

Retirement Plan: Choose your retirement plan. The calculator will suggest one based on your entry date, but you can change it. Options are Final Pay, High-3, CSB/REDUX, BRS, or Medical/Chapter 61.

Input Mode: Select Guided to have the calculator look up your base pay from DoD pay tables. Select Advanced if you want to type in your own High-3 average pay amount.

Pay Grade / Rank: Pick your pay grade at retirement, such as E-7 or O-5. This is used in Guided mode to find your base pay.

Years of Service: Enter the total number of years you will have served when you retire. Most service members need at least 20 years to qualify for retirement.²

High-3 / Base Pay Average: This field appears in Advanced mode only. Enter the monthly average of your highest 36 months of base pay.¹

Disability Rating: This field appears when you select the Medical/Chapter 61 plan. Enter your disability rating percentage from 30 to 100.¹

Annual COLA Estimate: Enter the yearly cost-of-living adjustment you expect. This is used to project how your pay grows each year in retirement. A common estimate is 2 to 3 percent.

SBP Election: Choose whether you plan to enroll in the Survivor Benefit Plan. If you select full coverage, 6.5% of your gross pay will be deducted as a premium. For members who first joined on or after March 1, 1990 and are not retired for disability, the law sets the premium at 6½ percent of the base amount.⁵

Estimated Tax Rate: Enter your expected federal and state income tax rate. This is used to estimate your take-home pay after taxes.

Projection Years: Enter how many years into the future you want to see your retirement income projected. The default is 20 years.

Click Calculate to see your results. Click Reset to return all fields to their default values and start over.

Military Retirement Pay Calculator

When you serve in the U.S. military long enough, you earn retirement pay for the rest of your life. Most service members need at least 20 years of active duty to qualify.² Your retirement pay is based on your pay grade, how long you served, and which retirement system covers you.

How Military Retirement Pay Works

The military has four main retirement systems. The one that applies to you depends on when you first entered service:

Final Pay – For those who joined before September 8, 1980.¹ Your retirement pay is based on your last base pay check.¹
High-3 – For those who joined on or after September 8, 1980, and before January 1, 2018.¹ Your pay is based on the average of your highest 36 months of base pay.¹
CSB/REDUX – An option for some who joined on or after August 1, 1986, and before January 1, 2003.¹ You get a $30,000 bonus at 15 years but accept a lower retirement multiplier.¹
Blended Retirement System (BRS) – For those who joined on or after January 1, 2018.¹ It uses a smaller multiplier of 2.0% per year but adds government matching in the Thrift Savings Plan (TSP), which functions similarly to a 401(k).¹

The Retirement Multiplier

Your multiplier decides how much of your base pay you keep in retirement. Under most plans, you earn 2.5% for each year you serve.¹ So 20 years of service gives you 50% of your base pay.¹ Under BRS, the rate is 2.0% per year, so 20 years gives you 40%.¹ Serving longer keeps raising the percentage: under High-3, 30 years gives you 75% and 40 years gives you 100%.¹

Medical Retirement (Chapter 61)

If you leave the military due to a disability, you may qualify for medical retirement with fewer than 20 years.³ Your multiplier is the higher of your years-of-service multiplier or your disability percentage, and the disability percentage is limited to 75%.⁴ Under BRS, the years-of-service multiplier is 2.0% per year instead of 2.5%.¹ Use our VA Disability Calculator to see how VA compensation may interact with your Chapter 61 retirement pay.

Other Things That Affect Your Pay

COLA stands for Cost of Living Adjustment. Each year, the government raises your retirement pay to keep up with inflation.¹ The Survivor Benefit Plan (SBP) lets you pay a premium so your spouse or children keep getting a portion of your pay after you die.⁷ Both of these are included in this calculator to give you a more accurate picture of your take-home pay over time.

This calculator covers active duty retirement only. Reserve and National Guard members use a points-based system that works differently.¹ If you are also planning for housing, our BAH Calculator can help you estimate your Basic Allowance for Housing while you are still serving.

Formulas used

Retirement Multiplier (Final Pay / High-3) ¹

M = 2.5\% \times YOS

Retirement Multiplier (BRS) ¹

M = 2.0\% \times YOS

Retirement Multiplier (CSB/REDUX) ¹

M = 2.5\% \times YOS - 1\% \times (30 - YOS) \quad \text{if } YOS < 30 \text{ and age} < 62

Medical / Chapter 61 Multiplier ¹

M = \max\!\left(r \times YOS,\; \min\!\left(\text{Disability}\%,\; 75\%\right)\right), \quad r = \begin{cases} 2.5\% & \text{legacy plans} \\ 2.0\% & \text{BRS (entry on or after January 1, 2018)} \end{cases}

Gross Monthly Retirement Pay ¹

P_{\text{gross}} = \text{Base Pay} \times M

SBP Premium (Monthly) ⁵

\text{SBP} = P_{\text{gross}} \times r_{\text{SBP}}

Net Monthly Retirement Pay ⁷

P_{\text{net}} = \left(P_{\text{gross}} - \text{SBP}\right) \times \left(1 - r_{\text{tax}}\right)

COLA-Adjusted Gross Monthly (Year n) ¹

P_n = P_{\text{gross}} \times \left(1 + r_{\text{COLA}}\right)^{n-1}

Frequently asked questions

What is the minimum years of service needed to retire from the military?

Most active duty service members need at least 20 years of service to qualify for regular military retirement.² The exception is a Medical (Chapter 61) retirement, which does not require 20 years of service.³ It applies if the military finds you medically unfit for continued service with a DoD disability rating of at least 30%.¹

Which retirement plan am I under?

Your plan depends on when you joined:

Before Sep 8, 1980: Final Pay
Sep 8, 1980 – Jul 31, 1986: High-3
On or after Aug 1, 1986 and before Jan 1, 2003: High-3 (or CSB/REDUX if you elected the career status bonus)
Jan 1, 2003 – Dec 31, 2017: High-3 (unless you opted into BRS)
Jan 1, 2018 or later: Blended Retirement System (BRS)¹

Enter your service entry date in the calculator and it will suggest the right one for you.

What does High-3 mean?

High-3 means the average of your highest 36 months of base pay.¹ For most people, this is the last three years of service since pay usually goes up over time.¹ This average is used as the starting number before the retirement multiplier is applied.

How is the retirement multiplier calculated?

For Final Pay and High-3 plans, the multiplier is 2.5% × years of service.¹ So 20 years = 50%, and 30 years = 75%.¹ For BRS, the multiplier is 2.0% × years of service.¹ So 20 years = 40%, and 30 years = 60%.¹ For CSB/REDUX, the High-3 multiplier is reduced by one percentage point for each year of service under 30, so 20 years = 40%, and it is restored at age 62.¹ A Medical retirement uses the higher of your years-of-service multiplier or your disability percentage, and the disability percentage is limited to 75%.⁴

What is the Survivor Benefit Plan (SBP)?

The SBP is an optional program that pays a monthly annuity to your eligible beneficiaries after you die, and the amount is a percentage of your retirement pay.⁶ Beneficiaries can include your spouse or children.⁷ If you elect full coverage, 6.5% of your gross retirement pay is taken out each month as a premium. For members who first joined on or after March 1, 1990 and are not retired for disability, the law sets the premium at 6½ percent of the base amount.⁵ The calculator deducts this amount when showing your net pay.

What is COLA and how does it affect my retirement pay?

COLA stands for Cost of Living Adjustment. Each year, the government increases your retirement pay to keep up with inflation.¹ The calculator uses your estimated COLA rate to project how your pay grows year after year. A typical estimate is 2% to 3% per year.

Is military retirement pay taxable?

Yes. If your retirement pay is based on age or length of service, it is taxable as a pension for federal income tax.⁷ Some states also tax it, while others do not. The calculator uses the estimated tax rate you enter to show your approximate take-home pay. Check your state's rules to get a more accurate number.

What happens if I serve more than 20 years?

Your multiplier keeps going up. Each extra year adds 2.5% (or 2.0% under BRS) to your retirement percentage.¹ For example, under High-3, 24 years gives you 60% and 30 years gives you 75%.¹ Serving longer means a bigger monthly check.

Can I collect both military retirement pay and VA disability compensation?

In many cases, yes. If you have a VA disability rating of 50% or higher, you can receive both through a program called Concurrent Retirement and Disability Pay (CRDP).³ If you have a combat-related disability rated by the VA, you may be eligible for Combat-Related Special Compensation (CRSC).² This calculator does not calculate VA disability pay separately.

What is CSB/REDUX and should I choose it?

CSB/REDUX was an option for members who joined on or after August 1, 1986, and before January 1, 2003.¹ You received a $30,000 bonus at 15 years of service in exchange for a lower retirement multiplier.¹ Most financial advisors say the reduced pension costs more in the long run than the bonus is worth. Eligibility to elect it ended on December 31, 2017.¹

What tax rate should I enter?

Enter your best estimate of your combined federal and state income tax rate. Many military retirees fall in the 10% to 22% federal bracket. If your state does not tax military retirement pay, you only need to estimate the federal portion. The result is an approximation, not exact tax advice.

Sources

Retirement. Military Compensation and Financial Readiness, U.S. Department of Defense. Accessed September 11, 2026.

Types of Retirement. Defense Finance and Accounting Service. Accessed September 11, 2026.

Concurrent Retirement and Disability Pay (CRDP). Defense Finance and Accounting Service. Accessed September 11, 2026.

10 U.S. Code § 1401 — Computation of retired pay. Legal Information Institute, Cornell Law School. § 1401(a), formula 1. Accessed September 11, 2026.

10 U.S. Code § 1452 — Reduction in retired pay. Legal Information Institute, Cornell Law School. § 1452(a)(1)(A)(iii). Accessed September 11, 2026.

Survivor Benefit Plan. Defense Finance and Accounting Service. Accessed September 11, 2026.

Publication 525 (2025), Taxable and Nontaxable Income. Internal Revenue Service. 2025;Military retirement pay. Accessed September 11, 2026.

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