# Military Retirement Calculator: High-3 and BRS Retired Pay

> Estimate military retired pay under High-3 or the Blended Retirement System: multiplier, monthly and annual pay, the BRS lump sum, and the SBP premium.

Source: https://www.themoneypocket.com/tools/military-retirement-calculator

**Military retired pay equals your High-36, the average of your highest 36 months of basic pay, times a multiplier: 2.5% per year of service under High-3, or 2.0% per year under the Blended Retirement System (BRS). DFAS rounds the result down to the nearest dollar.** With 20 years of service and a $5,000 High-36, that is $2,500 a month ($30,000 a year) under High-3 or $2,000 a month ($24,000 a year) under BRS, before COLAs, the Survivor Benefit Plan premium and tax.

The calculator below runs that formula for an active-duty or Guard/Reserve longevity retirement, then shows what the optional BRS lump sum would pay and cost, and what Survivor Benefit Plan (SBP) spouse coverage takes out of each check. You enter your own High-36 average, so there is no pay table to keep up to date.

> Interactive calculator: https://www.themoneypocket.com/tools/military-retirement-calculator
The calculator is for informational purposes only and gives estimates. Your official retired pay is set by DFAS from your service record, and your official lump sum comes from your service's retirement paperwork, not from this page.

## How much is military retirement pay at 20, 24 and 30 years?
The multiplier depends on the system and your years of service. Each full month beyond whole years counts as 1/12 of a year ([10 U.S.C. 1409(c)](https://www.law.cornell.edu/uscode/text/10/1409)). The table uses a $5,000 High-36 for every row so you can see the effect of the multiplier alone; in practice your High-36 also grows with promotions and longevity raises.

| Years of service | High-3 multiplier | High-3 monthly pay | BRS multiplier | BRS monthly pay | BRS gap per year |
|---|---|---|---|---|---|
| 20 | 50% | $2,500 | 40% | $2,000 | $6,000 |
| 22 | 55% | $2,750 | 44% | $2,200 | $6,600 |
| 24 | 60% | $3,000 | 48% | $2,400 | $7,200 |
| 26 | 65% | $3,250 | 52% | $2,600 | $7,800 |
| 30 | 75% | $3,750 | 60% | $3,000 | $9,000 |

The percentages match the multiplier chart DoD publishes on its [Military Retirement page](https://militarypay.defense.gov/Pay/Military-Retirement/). Service past 30 years keeps adding 2.5% (High-3) or 2.0% (BRS) a year for retirements after 2006, but only "under conditions authorized" by the Secretary of Defense ([10 U.S.C. 1409(b)(3)](https://www.law.cornell.edu/uscode/text/10/1409)); DFAS notes that the years-of-service multiplier is no longer capped at 75% for retirements after January 1, 2007 ([DFAS, Estimate Your Retirement Pay](https://www.dfas.mil/RetiredMilitary/plan/estimate/)).

### Worked example: 20 years, $5,000 High-36

- High-3: 2.5% × 20 = 50%. $5,000 × 50% = **$2,500 a month**, $30,000 a year.
- BRS: 2.0% × 20 = 40%. $5,000 × 40% = **$2,000 a month**, $24,000 a year.

The $500-a-month difference is the price of BRS's government TSP contributions, covered below.

### Worked example: 24 years 6 months, $6,500 High-36

Years of service: 24 + 6/12 = 24.5.

- High-3: 2.5% × 24.5 = 61.25%. $6,500 × 61.25% = $3,981.25, rounded down to **$3,981 a month** ($47,772 a year).
- BRS: 2.0% × 24.5 = 49%. $6,500 × 49% = **$3,185 a month** ($38,220 a year).

Staying from 20 to 24.5 years raises the High-3 multiplier by 11.25 points and, because the High-36 is usually higher by then too, raises pay by much more than the multiplier alone suggests.

## How the military retirement formula works
DFAS describes every plan the same way: retired pay base × service percent multiplier = gross retired pay, rounded down to the nearest dollar ([DFAS](https://www.dfas.mil/RetiredMilitary/plan/estimate/)). The statute behind it is [10 U.S.C. 1401](https://www.law.cornell.edu/uscode/text/10/1401), which pairs the retired pay base from [section 1407](https://www.law.cornell.edu/uscode/text/10/1407) with the multiplier from section 1409.

1. **Retired pay base (High-36).** Add your basic pay for the 36 months in which it was highest and divide by 36. That is usually your last three years. It counts basic pay only: housing and subsistence allowances, special pays and bonuses are not part of it. If you served fewer than three years, DFAS uses your average monthly basic pay over your whole service.
2. **Multiplier.** 2.5% × years of creditable service for High-3; 2.0% for a "full TSP member" under BRS ([10 U.S.C. 1409(b)(4)](https://www.law.cornell.edu/uscode/text/10/1409)).
3. **Guard and Reserve service.** Retirement points are converted to years by dividing by 360 ([10 U.S.C. 12733](https://www.law.cornell.edu/uscode/text/10/12733)). DFAS's own example: 7,200 points ÷ 360 = 20 years, so a 50% High-3 multiplier. Separately from the points, you need 20 qualifying years to earn reserve retired pay, which generally begins at 60 ([DFAS eligibility](https://www.dfas.mil/retiredmilitary/plan/eligibility/)).
4. **Rounding.** The product is rounded down to the whole dollar.
5. **Optional reductions.** A BRS lump sum and an SBP election lower what you actually receive each month; neither changes the gross retired pay figure.

### Which inputs to use

| Input | What to enter |
|---|---|
| Retirement system | High-3 if you first entered service between September 8, 1980 and December 31, 2017 and did not opt in to BRS; BRS if you entered on or after January 1, 2018 or opted in |
| High-36 average | Your average monthly basic pay over your highest 36 months, from your LES history |
| Years and months | Creditable active service at retirement, whole years plus extra full months |
| Retirement points | Guard/Reserve only: total points from your statement |
| Age | Age at retirement (active) or when retired pay starts (reserve); it sets the length of the lump-sum period |
| Lump sum and discount rate | BRS only: 25% or 50%, and DoD's Lump Sum Discount Rate for the year your pay starts |
| SBP | Whether you elect spouse coverage, and the base amount if lower than full retired pay |

## High-3 vs BRS: what you trade
BRS cuts the multiplier by a fifth and adds three things High-3 does not have. DoD's comparison chart and the statutes line up as follows.

| Feature | High-3 | Blended Retirement System |
|---|---|---|
| Who is covered | Entered Sept. 8, 1980 to Dec. 31, 2017 (no opt-in) | Entered on or after Jan. 1, 2018, or opted in during 2018 |
| Multiplier per year | 2.5% | 2.0% |
| 20-year pension on a $5,000 High-36 | $2,500 a month | $2,000 a month |
| Government TSP contributions | None | Automatic 1% of basic pay plus up to 4% matching |
| Continuation pay | No | At least 2.5 × monthly basic pay (active) for 3 more years |
| Lump sum at retirement | No | Optional, 25% or 50% |
| COLA | CPI-W | CPI-W |
| If you leave before 20 years | No retirement benefit | Your TSP balance, including vested government money |

Sources: [DoD Military Retirement](https://militarypay.defense.gov/Pay/Military-Retirement/), [5 U.S.C. 8440e](https://www.law.cornell.edu/uscode/text/5/8440e), [37 U.S.C. 356](https://www.law.cornell.edu/uscode/text/37/356), [10 U.S.C. 1415](https://www.law.cornell.edu/uscode/text/10/1415). Members serving on December 31, 2017 with fewer than 12 years of active service, or fewer than 4,320 reserve points, could opt in to BRS during the opt-in period; that window is closed.

### BRS TSP contributions: the 1% and the match

The government's automatic contribution is 1% of basic pay, starting 60 days after you first enter service. Matching starts 2 years and 1 day after entry, and both stop when you complete 26 years of service ([5 U.S.C. 8440e(e)(3)](https://www.law.cornell.edu/uscode/text/5/8440e)). The match follows the federal formula in [5 U.S.C. 8432(c)(2)](https://www.law.cornell.edu/uscode/text/5/8432): dollar for dollar on the first 3% of basic pay you contribute, then 50 cents per dollar on the next 2%. Civilian federal employees get the same 1% plus up-to-4% TSP structure under FERS ([5 U.S.C. 8432](https://www.law.cornell.edu/uscode/text/5/8432)); their pension has its own formula, covered by the [FERS retirement calculator](https://www.themoneypocket.comtools/fers-retirement-calculator).

| You contribute | Automatic | Matching | Government total |
|---|---|---|---|
| 0% | 1% | 0% | 1% |
| 1% | 1% | 1% | 2% |
| 3% | 1% | 3% | 4% |
| 4% | 1% | 3.5% | 4.5% |
| 5% | 1% | 4% | 5% |

Contributing at least 5% of basic pay captures the full 4% match. Your own deferrals count toward the same yearly limit as a 401(k), $24,500 for 2026, covered in our guide to [401(k), TSP and IRA contribution limits](https://www.themoneypocket.comarticles/401k-ira-contribution-limits).

### Continuation pay

Continuation pay is a one-time BRS bonus for agreeing to serve at least 3 more years. You become eligible after completing at least 7 and no more than 12 years of service. For the active component it is at least 2.5 times your monthly basic pay, and your service may add up to 13 more months of pay; for the reserve component it is at least 0.5 times, with up to 6 more months. You can take it in a lump sum or in up to four payments ([37 U.S.C. 356](https://www.law.cornell.edu/uscode/text/37/356)).

## How the BRS lump sum works
Under [10 U.S.C. 1415](https://www.law.cornell.edu/uscode/text/10/1415), a BRS retiree can take the discounted present value of 25% or 50% of the retired pay due between retirement and full Social Security retirement age. In exchange, monthly retired pay is 75% (25% option) or 50% (50% option) of the full amount until that age. It is restored, including every COLA you would have received, starting the month after you reach it. Full retirement age is 67 for anyone who turns 62 after 2021 ([42 U.S.C. 416(l)](https://www.law.cornell.edu/uscode/text/42/416)), which covers essentially everyone under BRS.

Rules that matter:

- **Deadline.** You must elect at least 90 days before retirement; Guard and Reserve members elect at least 90 days before retired pay begins ([DFAS](https://www.dfas.mil/RetiredMilitary/newsevents/newsletter/June2025-Understanding-the-Blended-Retirement-System/)).
- **Payment.** The first payment is due within 60 days of retirement, and the statute allows a single payment or a combination of payments (§1415(b)(4)–(5)). DoD's BRS calculator models one to four equal annual installments ([BRS calculator technical reference](https://militarypay.defense.gov/Blended-Retirement/BRS-Comparison-Calculator-Technical-Reference/)).
- **Not for disability retirements.** A member retired under chapter 61 cannot elect it (§1415(a)(2)).
- **Discount rate.** DoD sets a Lump Sum Discount Rate each year, an inflation-adjusted rate based on a 7-year average of Treasury corporate bond yields plus an adjustment, and publishes it in June for the following year ([technical reference](https://militarypay.defense.gov/Blended-Retirement/BRS-Comparison-Calculator-Technical-Reference/)). For retired pay that begins between January 1 and December 31, 2027, the rate is **6.60%** ([DoD memo, July 7, 2026](https://militarypay.defense.gov/Portals/3/Documents/Blended%20Retirement/2027%20BRS%20LSDR%20memo_%20signed%207Jul26.pdf)). Enter the rate for the year your pay starts.

### Worked example: the lump sum at 38 and at 45

Take a BRS member with a $5,000 High-36 and 20 years, so $2,000 a month. The calculator values each month's pay you give up, through age 67, at 6.60% a year. Because DoD's rate is an after-inflation rate and DoD also projects COLAs, the calculator treats the payments as level in today's dollars, which is close to, but not the same as, DoD's actuarial figure.

**Retiring at 38:** (67 − 38) × 12 = 348 months to 67. The present value of $1 a month for 348 months at 6.60% is about 157.91.

- 25% option: $2,000 × 25% = $500 a month given up. $500 × 157.91 ≈ **$78,957** lump sum. Monthly pay drops to $1,500 until 67. Undiscounted, you give up $500 × 348 = $174,000 in today's dollars, so the lump sum is about 45% of it.
- 50% option: $1,000 × 157.91 ≈ **$157,914**, and $1,000 a month until 67, against $348,000 given up.

**Retiring at 45:** 264 months to 67, a factor of about 141.36. The 25% option pays $500 × 141.36 ≈ $70,679 for $132,000 of pay given up, about 54%. The later you retire, the shorter the discount period and the better the exchange rate.

| Retire at | Months to 67 | 25% lump sum | Pay given up (25%) | 50% lump sum | Pay given up (50%) |
|---|---|---|---|---|---|
| 38 | 348 | $78,957 | $174,000 | $157,914 | $348,000 |
| 42 | 300 | $74,683 | $150,000 | $149,367 | $300,000 |
| 45 | 264 | $70,679 | $132,000 | $141,359 | $264,000 |

All rows: $2,000 a month BRS retired pay, 6.60% discount rate, today's dollars.

The lump sum is part of your retired pay, so it is taxable when you receive it. A $78,957 payment on top of a civilian salary in the same year can push much of it into a higher bracket; spreading it across installments puts it in more than one tax year. Use the [federal tax bracket calculator](https://www.themoneypocket.comtools/federal-tax-bracket-calculator) to see which brackets it would land in.

## What the Survivor Benefit Plan costs
Retired pay stops when you die. SBP spouse coverage continues part of it: the annuity is 55% of the base amount you choose ([10 U.S.C. 1451(a)(1)(A)](https://www.law.cornell.edu/uscode/text/10/1451)), and the premium is 6.5% of that base amount each month for members who entered service after February 1990 ([10 U.S.C. 1452(a)(1)](https://www.law.cornell.edu/uscode/text/10/1452)).

- **Base amount.** Full monthly retired pay, or any lower amount you designate, but not less than $300 ([10 U.S.C. 1447(6)](https://www.law.cornell.edu/uscode/text/10/1447)). For a BRS lump-sum retiree it is figured on full retired pay, ignoring the lump-sum reduction, so the lump sum does not make SBP cheaper.
- **Paid up.** Premiums stop after the later of your 360th monthly premium and the month you turn 70 (§1452(j)).
- **Taxes.** The premium is not included in your taxable income ([IRS Publication 525](https://www.irs.gov/publications/p525), "Military retirement pay").

**Example:** High-3, $2,500 a month, full SBP. Premium: $2,500 × 6.5% = $162.50 a month, $1,950 a year. Your spouse's annuity: $2,500 × 55% = $1,375 a month. Your check before tax withholding: $2,500 − $162.50 = $2,337.50.

**With the BRS 50% lump sum** on $2,000 a month and full SBP: $2,000 × 50% = $1,000, minus $2,000 × 6.5% = $130 premium, leaves $870 a month until 67, then $2,000 − $130 = $1,870 in today's dollars.

## How military retired pay is taxed
Retired pay based on age or length of service is taxable and reported as a pension on Form 1040 lines 5a and 5b ([IRS Publication 525](https://www.irs.gov/publications/p525)). DFAS sends Form 1099-R each year, and you set federal withholding in myPay or with Form W-4; state withholding goes on DD Form 2866, only for states that have a withholding agreement with DoD ([DFAS tax season tips](https://www.dfas.mil/RetiredMilitary/newsevents/newsletter/March2026-Retiree-Newsletter-Tax-Season-Tips-for-Military-Retirees/)). State treatment varies, and DFAS tells retirees to check with their state's revenue department.

**Example, 2026 federal tax:** a single filer whose only income is $30,000 of High-3 retired pay with full SBP. Taxable retired pay: $30,000 − $1,950 SBP = $28,050. Minus the $16,100 standard deduction = $11,950 of taxable income, all in the 10% bracket (it runs to $12,400 for single filers, per [Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)), so the tax is $1,195. Without SBP it would be $12,400 × 10% + $1,500 × 12% = $1,420.

Disability pay follows different rules. VA disability compensation is not taxable (Publication 525, "Veterans' benefits"). Normally, retired pay is reduced by the VA compensation you receive; if your VA rating is 50% or more, concurrent retirement and disability pay lets you receive both ([10 U.S.C. 1414](https://www.law.cornell.edu/uscode/text/10/1414)). Combat-related special compensation is also excluded from income. If either applies, the taxable figure on your 1099-R will be lower than the calculator's gross pay.

## When military retired pay starts and how DFAS pays it
You apply on DD Form 2656, which also sets up direct deposit ([DFAS](https://www.dfas.mil/retiredmilitary/apply/receive-pay/)). Retired pay is paid monthly in arrears: each month's pay is due on the first of the next month, and when the 1st falls on a weekend or holiday, retirees are paid on the last business day before it. For example, October 2026 retired pay was paid on October 30, 2026 and December 2026 pay is scheduled for December 31, 2026 ([DFAS pay schedule](https://www.dfas.mil/retiredmilitary/manage/payschedule/)).

Retired pay rises with a cost-of-living adjustment effective December 1 each year ([10 U.S.C. 1401a](https://www.law.cornell.edu/uscode/text/10/1401a)), based on the Consumer Price Index for Urban Wage Earners (CPI-W) under High-3, BRS and Final Pay ([DoD](https://militarypay.defense.gov/Pay/Military-Retirement/)). Your first adjustment after retiring can be smaller than the full COLA, depending on when your pay began (§1401a(d)). That is the same index behind Social Security's yearly raise, which you can model with the [Social Security COLA calculator](https://www.themoneypocket.comtools/social-security-cola-calculator). The calculator shows today's dollars, so read every figure as before future COLAs.

## How military retirement works with Social Security and the TSP
Military retired pay does not reduce your Social Security benefit. The Social Security Fairness Act repealed the Windfall Elimination Provision and the Government Pension Offset for benefits payable after December 2023, as explained in our guide on [when to claim Social Security at 62, 67 or 70](https://www.themoneypocket.comarticles/when-to-claim-social-security-62-vs-67-vs-70). Your benefit depends on your own earnings record; estimate it with the [Social Security calculator](https://www.themoneypocket.comtools/social-security-calculator).

The two do interact on timing. A BRS lump sum lowers your pay until 67, the same age as your full Social Security benefit, so the reduction ends when that income starts. Waiting past 67 to claim Social Security raises your benefit, and the restored retired pay can help cover that wait.

Retired pay also counts as income when the IRS decides how much of your Social Security is taxable; see [how Social Security benefits are taxed](https://www.themoneypocket.comarticles/how-social-security-benefits-are-taxed).

Your TSP is a separate account: retired pay does not change it, and leaving the service does not force you to withdraw it. Withdrawals of traditional (pre-tax) TSP money are taxable income in the year you take them; the [401(k) withdrawal calculator](https://www.themoneypocket.comtools/401k-withdrawal-calculator) shows how a cash withdrawal from a plan like the TSP is taxed and withheld.

## Final Pay and REDUX in brief
Two older formulas still apply to some retirees ([DoD Military Retirement](https://militarypay.defense.gov/Pay/Military-Retirement/)):

- **Final Pay:** for members who first entered before September 8, 1980. The base is final basic pay on the day of retirement, not a 36-month average; the multiplier is 2.5% a year.
- **CSB/REDUX:** an election for members who entered after July 31, 1986, in exchange for a $30,000 Career Status Bonus at 15 years. Before 62 the High-36 multiplier is cut by one point for each year under 30 (40% at 20 years), and the COLA is normally CPI minus one point; at 62 pay is recomputed to the High-3 amount. Eligibility to elect it ended December 31, 2017.

This calculator does not compute either one. For Final Pay, you can enter your final basic pay as the "High-36" with the High-3 setting; REDUX needs DoD's REDUX calculator.

## Common mistakes when estimating military retired pay
- **Using total pay instead of basic pay.** BAH, BAS, special and incentive pays are not part of the High-36.
- **Using the current pay table for a future retirement.** The High-36 is set from the basic pay you actually receive in your last years. Enter today's figure to see the result in today's dollars, but do not mix a future multiplier with today's grade.
- **Rounding years up.** Only full months count. 19 years 11 months is not 20 years, and it is not a regular active-duty retirement.
- **Comparing the lump sum to the sum of the payments.** The lump sum is a discounted value; compare it to what the money would do for you, such as paying off debt at a higher rate than the discount rate.
- **Forgetting the SBP premium in a budget.** On a $3,000 base it is $195 a month for up to 30 years.