Army Retirement Pay Calculator
Estimate your potential monthly and annual retirement pay based on your years of service and chosen retirement plan.
Understanding Army Retirement Pay
Retiring from the U.S. Army is a significant milestone, and understanding your potential retirement pay is crucial for financial planning. Eligibility for retirement typically begins after 20 years of active federal service. The amount of your retirement pay largely depends on two key factors: your years of service and the retirement system you fall under.
The "High-3" Average Basic Pay
Both the High-3 System and the Blended Retirement System (BRS) use your "high-3" average basic pay as a foundation for calculating your pension. This refers to the average of the highest 36 months of basic pay you earned during your career. For most service members, this will be the basic pay earned during their final three years of service, assuming consistent promotions and pay raises.
High-3 System (Legacy System)
The High-3 System applies to service members who entered military service before January 1, 2018, and did not opt into the Blended Retirement System. Under this system, your retirement pay is calculated as:
(High-3 Average Monthly Basic Pay) × (Years of Service × 2.5%)
The maximum retirement pay under the High-3 system is 75% of your high-3 average basic pay, which is achieved with 30 years of service (30 years × 2.5% = 75%).
Blended Retirement System (BRS)
The Blended Retirement System (BRS) became effective on January 1, 2018. It applies to all service members who entered service on or after this date, as well as those who opted into it from the legacy system. BRS combines a reduced defined benefit (pension) with a defined contribution (Thrift Savings Plan – TSP) with government matching contributions.
For the pension component, your retirement pay is calculated as:
(High-3 Average Monthly Basic Pay) × (Years of Service × 2.0%)
The multiplier for BRS is 2.0% per year of service, compared to 2.5% for the High-3 system. This means that for the same years of service and high-3 basic pay, the BRS pension will be lower. However, the BRS also includes government contributions to your TSP, which can significantly boost your overall retirement savings.
The maximum retirement pay under BRS is also 75% of your high-3 average basic pay, but it requires 37.5 years of service to reach this cap (37.5 years × 2.0% = 75%).
How to Use This Calculator
- Years of Service (YOS): Enter the total number of creditable years you expect to serve or have served. A minimum of 20 years is required for retirement.
- Estimated High-3 Average Monthly Basic Pay ($): Input your estimated average monthly basic pay for your highest 36 months of service. You can find current basic pay charts on the DoD website to help estimate this based on your rank and time in service.
- Retirement Plan: Select whether you are under the High-3 System or the Blended Retirement System (BRS).
- Click "Calculate Retirement Pay" to see your estimated monthly and annual retirement income.
Disclaimer: This calculator provides an estimate based on the information provided and simplified formulas. Actual retirement pay can be affected by various factors including cost-of-living adjustments (COLAs), disability ratings, and specific career circumstances. Consult with a financial advisor or military benefits expert for personalized advice.