Military Retirement Pay Calculator
Military retired pay is a defined benefit: your monthly pension equals years of creditable service multiplied by a percentage multiplier, multiplied by your high-3 average basic pay (the average of your highest 36 months). The multiplier is 2.5% per year under the legacy High-3 system or 2.0% per year under the Blended Retirement System. This calculator takes the multiplier as an editable input so you can model either system. Enter your years of service, multiplier and high-3 average to estimate your monthly and annual retired pay.
Retired pay formula
Total multiplier % = years of service x multiplier per year Monthly retired pay = (total multiplier % / 100) x high-3 average Annual retired pay = monthly retired pay x 12
High-3 uses 2.5% per year; the Blended Retirement System uses 2.0% per year.
Worked example
20 years at 2.5% per year gives a 50% multiplier. With a high-3 average of 6,000, monthly retired pay = 0.50 x 6,000 = 3,000.00, or 36,000.00 per year.
Military retired pay: frequently asked questions
How is military retired pay calculated?
Under the High-3 system, monthly retired pay equals 2.5% multiplied by years of creditable service, multiplied by the average of your highest 36 months of basic pay (the high-3 average). Under the Blended Retirement System (BRS), the multiplier is 2.0% instead of 2.5%, with the difference offset by Thrift Savings Plan contributions and matching.
What is the high-3 average?
The high-3 average is the average of your highest 36 months of basic pay, which for most members are the final three years of service. Only basic pay counts, not allowances such as BAH or BAS, and not special or incentive pays. Enter your high-3 monthly average to get a retired pay estimate.
Which multiplier should I use?
Use 2.5% per year if you are under the legacy High-3 (Final Pay or High-3) system, or 2.0% per year if you are under the Blended Retirement System. Members who entered service on or after 1 January 2018 are generally under BRS. The multiplier is an editable input so you can model either system.
Does this include cost-of-living adjustments?
No. This calculator estimates the initial monthly retired pay at retirement. Military retired pay receives annual cost-of-living adjustments (COLA) based on the Consumer Price Index, which increase the amount over time. The Defense Finance and Accounting Service publishes the COLA each year.
Official sources
- Defense Finance and Accounting Service: Military Retirement.
- US Department of Defense: Military Retirement.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.