Military Retirement Pay Calculator (2026)

The U.S. military uses three active-duty retirement formulas — Final Pay, High-3, and Blended Retirement System (BRS) — with meaningfully different monthly income outcomes and TSP trade-offs. Enter your system, years of service, and base pay to see your gross retired pay, Survivor Benefit Plan (SBP) cost, and net monthly income. The comparison table at the bottom shows what the same service history produces under all three systems.

Understanding the three military retirement systems

High-3 (most retirees)

The High-3 system pays 2.5% of your average highest-36-consecutive-months of basic pay per year of service. At 20 years that's 50% of your high-3 average; at 30 years it's 75%. The "highest 36 months" is almost always your final three years of service, since pay generally trends upward over a career. Entered service September 8, 1980 through December 31, 2017.

BRS — Blended Retirement System

BRS uses a 2.0% multiplier (40% at 20 years vs. 50% under High-3) in exchange for mandatory government TSP contributions throughout your career: an automatic 1% of basic pay regardless of what you contribute, plus matching up to 4% if you contribute at least 5%.¹ Over a full 20-year career, the government TSP contributions can accumulate $80,000–$150,000 depending on pay level and investment returns — partially closing the annuity gap with High-3.

Final Pay

The oldest system: 2.5% of your final month's basic pay per year of service. Because final pay is used rather than the 36-month average, the result is typically slightly higher than High-3 (pay usually rises in the final years). Only available to those who entered service before September 8, 1980.

REDUX (not calculated here)

REDUX was a fourth option available from 1986–2017: a $30,000 Career Status Bonus at the 15-year mark in exchange for a reduced 40%-at-20-year multiplier and a permanently reduced COLA (COLA minus 1%). Most financial analyses find REDUX unfavorable except for those who were highly confident of leaving at exactly 20 years and invested the $30K bonus aggressively. If you're under REDUX, consult your branch's finance office for your exact formula.

Survivor Benefit Plan (SBP): what the premium buys

SBP is a federally subsidized annuity program — not insurance — that pays your surviving spouse 55% of your elected base amount, inflation-adjusted for life. The premium is 6.5% of the elected base amount, deducted pre-tax from your retired pay. At age 70 and 30 years of premiums, SBP becomes paid-up: coverage continues, premiums stop.³

The 2023 SBP-DIC offset was fully eliminated. Surviving spouses who qualify for VA Dependency and Indemnity Compensation (DIC) — currently $1,699.36/month in 2026⁴ — receive both SBP and DIC in full, with no reduction in either. For retirees with significant VA disability ratings, this stacking effect can make SBP substantially more valuable than a straight survivor-income comparison suggests.

See the full SBP guide for the SBP vs. life insurance comparison, longevity break-even math, and CRDP/DIC interaction scenarios.

CRDP and CRSC: when VA disability and military retirement overlap

Concurrent Retirement and Disability Pay (CRDP) allows 20-year retirees with a VA rating of 50% or higher to receive both their full military retired pay and their full VA disability compensation — no offset, no waiver required. CRDP is automatic; no application is needed.⁵

Combat-Related Special Compensation (CRSC) covers combat-related disabilities at any rating percentage (10%+ required). Unlike CRDP — which applies to all service-connected disabilities at 50%+ — CRSC requires the disability to be attributable to combat, an instrumentality of war, or a qualifying hazardous duty. Retirees cannot receive both; DFAS automatically pays whichever is larger unless you elect otherwise.

For retirees with significant VA ratings, the CRDP/CRSC analysis is often worth thousands of dollars annually and should be part of any retirement income model.

The pension rollover decision for military retirees

Most active-duty pensions are annuity-only — you cannot elect a lump sum and roll it over to an IRA. However, military retirees typically have a TSP balance that presents exactly this decision: leave it in the TSP (access to the irreplaceable G Fund, age-55 penalty-free withdrawals) or roll it to an IRA (broader investment options, Roth conversion access, simplified beneficiary planning).

The TSP-to-IRA rollover decision is materially different from a civilian pension rollover because of the G Fund's unique Treasury-backed returns and the Rule of 55 advantage that disappears once TSP funds are moved to an IRA. Read the TSP rollover guide before making this decision.