Military Retirement Calculator

Calculate military retirement pay based on years of service and pay grade.

By Konstantin Iakovlev · Updated April 2026 · Source: DFAS

$

Monthly Pension

$3,750.00

Multiplier

50.00%

Retirement Breakdown

Years of Service20
Multiplier (2.5% x years)50.00%
High-3 Average$7,500.00
Monthly Pension$3,750.00
Annual Pension$45,000.00

Use the Military Retirement Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Projecting your retirement pay comes down to two inputs: your years of service and your pay grade. Having a realistic number in hand matters for long-range planning, particularly now that most service members fall under the Blended Retirement System (BRS). The projection here draws on 2026 pay tables and BRS multipliers to keep the estimate grounded.

Under BRS, the formula multiplies 2.0% by the average of your highest 36 months of basic pay, then by your years of creditable service. Members who remain on the legacy High-3 system, meaning they entered service before January 1, 2018, and chose not to opt into BRS, use 2.5% of that same highest-36-month average multiplied by creditable years. The tool asks you to select which system applies to you.

These figures are projections, not guarantees, and they leave out future pay raises, cost-of-living adjustments, and any legislative changes down the road. Promotions and demotions both reshape your high-3 average, a factor that is easy to overlook. Enter your total creditable years carefully as well, since that single number carries heavy weight in the final result.

Example: E-7 retiring in 2026 under BRS

  1. 1 Let's say Master Sergeant Smith (E-7) plans to retire in 2026 with 20 years of service under the Blended Retirement System. Their highest 36 months of basic pay average out to $5,500 per month.
  2. 2 Using the BRS formula: 2.0% * $5,500 (average high-3 basic pay) * 20 (years of service).
  3. 3 This calculates to a monthly military retirement pay of $2,200.
  4. 4 This $2,200 is the estimated gross monthly retirement pay before taxes or deductions. This amount will be adjusted annually for Cost of Living Adjustments (COLAs) after retirement.

Source: DFAS · Last updated: April 2026

Frequently Asked Questions

How is military retirement pay calculated?
Under the High-3 system, retirement pay is 2.5% times years of service times the average of your highest 36 months of base pay. At 20 years, that equals 50% of your high-3 average. Each additional year adds 2.5%, up to 75% at 30 years.
Is military retirement pay taxable?
Yes. Military retirement pay is subject to federal income tax. However, if any portion is attributable to a VA disability rating, that portion is tax-free. Many states exempt part or all of military retirement from state income tax.
Can I start receiving military retirement pay immediately?
If you retire with 20+ years of active duty service, pension payments begin immediately upon retirement with no waiting period. Reserve and Guard members under the reserve retirement system must wait until age 60, though this can be reduced for qualifying active duty service.

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