This military retirement calculator estimates your monthly retired pay under the High-3 system or the Blended Retirement System (BRS) and shows what the other system would pay, plus a lifetime estimate with cost-of-living increases.
Military retirement formulas
| System | Formula | At 20 years | Who it covers |
|---|---|---|---|
| High-3 | 2.5% × years of service × High-3 | 50% | Joined 8 September 1980 – 31 December 2017 and did not opt in to BRS |
| Blended Retirement System | 2.0% × years of service × High-3 | 40% | Joined from 1 January 2018, or opted in |
High-3 is the average of your highest 36 months of basic pay, usually your last three years. BRS pays a smaller pension but adds Thrift Savings Plan contributions: an automatic 1% of basic pay plus matching of up to 4% more.
Worked example
A service member retiring after 20 years with a High-3 of $6,000 a month receives 50% × $6,000 = $3,000 a month under High-3. Under BRS, the pension is 40% × $6,000 = $2,400 a month, with the TSP balance on top.
Things that change your retired pay
- Cost-of-living adjustments: retired pay rises each year with inflation.
- Taxes: retired pay is taxable federally; many states exempt it.
- VA offset: VA disability pay normally reduces retired pay dollar for dollar unless you qualify for Concurrent Retirement and Disability Pay (rated 50% or more) or Combat-Related Special Compensation.
- Survivor Benefit Plan: costs 6.5% of the covered amount if you elect it.
Frequently asked questions
How many years do I need to retire from the military?
Active duty members generally need 20 years of service for a regular retirement pension.
Is High-3 or BRS better?
High-3 pays a larger pension if you serve 20 years or more. BRS gives a smaller pension but adds TSP matching that you keep even if you leave before 20 years, which most service members do.
Is military retirement pay taxable?
Yes, at the federal level. Many states fully or partly exempt military retired pay.
What is the BRS lump sum option?
At retirement, BRS members can take 25% or 50% of their discounted future pension up to full retirement age as a lump sum, in exchange for reduced monthly pay until that age.
Does this work for the Reserves or National Guard?
Not directly. Reserve retirement is based on retirement points converted to equivalent years and usually starts at age 60.
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Sources
Last reviewed: October 2026. For information only; not financial, tax or legal advice.