Military Retirement Calculator

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

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

Our Military Retirement Calculator helps you estimate your future retirement pay based on your years of service and current pay grade. Understanding your potential retirement income is crucial for financial planning, especially as the military transitions to the Blended Retirement System (BRS) for most service members. This calculator will use 2026 pay tables and BRS multipliers to give you a realistic projection.

This calculator uses the Blended Retirement System (BRS) formula, which is 2.0% multiplied by your highest 36 months of basic pay, then multiplied by your years of creditable service. For those under the legacy High-3 system (entered service before January 1, 2018, and did not opt into BRS), the formula is 2.5% of your highest 36 months of basic pay multiplied by your years of creditable service. We will prompt you to select your retirement system.

Remember that these calculations are estimates and do not account for future pay raises, cost-of-living adjustments (COLAs), or potential changes in legislation. A common mistake is not considering the impact of promotions or demotions on your 'high-3' average. Also, ensure you accurately input your total creditable years of service, as this significantly impacts the final calculation.

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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