Military Retirement Pay Calculator 2025

Under the High-3 system, your retirement pay equals your average basic pay over the highest 36 consecutive months of service, multiplied by 2.5% for each year of creditable service. For example, a 20-year retiree receives 50% of their High-3 average. The maximum is 75% at 30 years.

The BRS, mandatory for those who joined after January 1, 2018, uses a 2% multiplier instead of 2.5%, resulting in a lower pension. However, BRS members receive government TSP contributions — an automatic 1% and matching up to 4% — making the overall retirement package competitive when service members maximize their TSP.

The Final Pay system applies to service members who entered active duty before September 8, 1980. It calculates retirement pay based on the final month's base pay multiplied by 2.5% per year of service. This is generally the most generous of the three systems.

SBP is a life insurance-like annuity that continues a portion of your retirement pay to your spouse after your death. The standard spouse coverage costs 6.5% of your gross retirement pay. In exchange, your beneficiary receives 55% of your covered base amount. SBP premiums are paid pre-tax, reducing your taxable income.

Yes. Military retirement pay receives an annual Cost of Living Adjustment (COLA) tied to the Consumer Price Index (CPI). High-3 and Final Pay retirees receive the full CPI increase. BRS retirees receive CPI minus 1% until age 62, when their pay is recalculated to match what it would have been at the full COLA rate.