Military Retirement Calculator

Calculate legacy High-3 military retirement pay from years of service and your High-3 average basic pay.

By Konstantin Iakovlev · Updated September 2026 · Source: 10 U.S.C. §1409 — retired pay multiplier (2.5% per year of creditable service)

$

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

Rated by the VA? Compensation is taken out of retired pay unless CRDP or CRSC restores it: CRDP vs CRSC calculator

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 High-3, the average of your highest 36 months of basic pay. Having a realistic number in hand matters for long-range planning. This calculator applies the legacy High-3 multiplier of 2.5% a year; members under the Blended Retirement System (BRS) earn 2.0% a year instead, and the blended retirement calculator sets the two side by side.

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. This tool uses the 2.5% legacy rate only, so a BRS member should multiply its result by 0.8 (2.0 ÷ 2.5) or use the blended retirement calculator.

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: 20 Years with a $5,500 High-3

  1. 1 Input: Years of Service 20, High-3 Monthly Base Pay $5,500 (the average of the highest 36 months of basic pay).
  2. 2 Multiplier: 2.5% × 20 = 50%.
  3. 3 Monthly pension: 50% × $5,500 = $2,750.00, or $33,000.00 a year, before taxes.
  4. 4 Under BRS the multiplier would be 2.0% × 20 = 40%, or $2,200.00 a month. This calculator shows the legacy figure, so a BRS member should use the blended retirement calculator.

Source: 10 U.S.C. §1409 — retired pay multiplier (2.5% per year of creditable service) · Last updated: September 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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