Military COLA Calculator

Cost of Living Allowance exists to keep military pay from losing ground in expensive locations, and what you receive turns on your duty station and pay grade. The allowance offsets the higher prices some areas carry, so your paycheck holds its purchasing power wherever you are assigned. For 2026, the Department of Defense is projected to adjust COLA rates to track expected inflation and local economic conditions.

Behind the estimate sits a formula that weighs your base pay grade, the COLA index for your geographic location, and your dependency status. That index comes from comparing the cost of housing, goods, and services at your duty station against the CONUS average. In practice the calculation multiplies your base pay by a location-specific COLA factor, then layers on adjustments for dependents and other circumstances.

Even a small slip in pay grade or duty station can swing the result, so confirm both before trusting the output. COLA is not locked in; it moves year to year as economic conditions change and the DoD revisits its figures. And it is distinct from BAH, the Basic Allowance for Housing, which covers housing costs through an entirely separate program.