An official website of the United States government         Here's how you know         
**Official websites use .mil**
A **.mil** website belongs to an official U.S. Department of Defense organization in the United States.
**Secure .mil websites use HTTPS**
 A **lock (lock )** or **https://** means you’ve safely connected to the .mil website. Share sensitive information only on official, secure websites.

Skip to main content (Press Enter).

Defense Finance and Accounting Service Providing payment services for the U.S. Department of Defense

Search
Search

Search

              - 
              - 
              - 
              - 
              - 

-  Military Member		 
-  Retired Military & Annuitant		 
-  Civilian Employee		 
-  Contractor & Vendor		 

HomeRetiredMilitaryplanestimate

#### **Quick ToolsaskDFAS****Forms Library****  ****Frequently Asked Questions**

#### **Customer Service**

**800-321-1080**M-F, 8 a.m. to 5 p.m. ET

                        - Quick Tools
                        - News and Events                            - News
                          - Upcoming Retiree Events
                          - Retiree Newsletter
                          - Retiree Newsletter Archive
                          - Survivor SBP Newsletter
                        - About R&A Pay                            - Who We Are, What We Do
                          - How Long Does It Take?
                          - Who Should I Contact: DFAS, the VA or the Military?
                        - Plan for Retirement                            - Types of Retirement
                          - Eligibility
                          - Recall to Active Duty
                          - Estimate Your Pay
                          - Separation Payments
                        - Apply for Retirement                            - How to Apply
                          - Transfer Allotments
                          - Receiving Your Pay
                        - Managing Your Retirement                            - Pay Schedule
                          - Change of Address
                          - Direct Deposit
                          - International Direct Deposit
                          - Using myPay
                          - Retiree Account Statement
                          - Allotments
                          - Pay Verification
                          - Taxes
                          - Powers of Attorney/Third Party Representatives for Retirees
                        - Gray Area Retirees
                        - Disability Entitlements                            - Disability Retirement
                          - CRSC and CRDP Payment
                          - Combat Related Special Compensation
                          - Concurrent Retirement Disability Pay
                          - Comparing CRSC and CRDP
                          - Applying for CRSC
                          - VA Waiver and Retired Pay
                          - CRDP CRSC FAQs
                        - Provide for Loved Ones                            - Two Ways to Prepare
                          - Survivor Benefit Plan
                          - Arrears of Pay
                          - Reserve Component SBP
                          - Secondary Dependency
                          - Branch Contact Information
                        - Survivors and Beneficiaries                            - Report a Retiree's Death
                          - Start an SBP Annuity
                          - Manage Your SBP Annuity
                          - SBP-DIC News
                          - SBP2023 Optional Child Annuity Reversion
                          - Understanding SBP, DIC and SSIA
                          - School Certifications
                          - Powers of Attorney/Third Party Representatives for Annuitants
                          - Starting SBP for Gray-Area Reservist
                          - Report SBP Annuitant's Death
                          - Survivor Benefit and Arrears of Pay Frequently Asked Questions
                          - DFAS Survivor SBP Newsletter
                        - Secondary Dependency
                        - SBP Open Season NDAA2023

#### **Estimate Your Retirement Pay**

The Department of Defense uses a multi-step formula to compute your retired pay. The amount generally is based on your length of service or your disability percentage. Factors such as the year you entered service and your  retirement type also affect your pay.**Retired Pay Formula**All of the retirement plans determine your monthly pay by multiplying your retired pay base by a service percentage:

   Retired Pay Basex Service Percent Multiplier= Gross Retired Pay

Your gross retired pay is rounded down to the nearest dollar. 

#### **What is My Retired Pay Base?**

**Final Pay:** If you entered active or reserve military service before September 8, 1980, your retired pay will be based on your final basic pay.

**High-3:** If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay.  If you served less than three years, your base will be the average monthly active duty basic pay during your period of service. 

#### **What is My Service Percent Multiplier?**

##### **ACTIVE DUTY** 

The longer you stay on active duty, the higher your retirement pay. Each year of active duty service is worth 2.5 percent toward your service percent multiplier.

A retiree with 20 years of service would have a service percent multiplier of 50 percent:

2.5% x 20 years = 50%

Read more about **active duty retirement** on the OSD website.

##### **RESERVE**

Reserve service is “converted” to active service by dividing retirement points by 360.

7200 points divided by 360 = 20 years of active duty service

2.5% x 20 years = 50%

Read more about **reserve retirement** on the OSD website.

##### **CSB/REDUX**

If you retired under CSB/REDUX, your retired pay multiplier will be reduced by 1 percent for each full year. This reduction remains in effect up to the age of 62 when your retired pay will be restored to the same amount paid under the High-3 System.

##### **Related Link:**

**CSB/REDUX** 

##### **DISABILITY RETIREMENT**

The multiplier for disability retired pay is either:
                        - 2.5 percent for each year of service, or
                        - disability percentage assigned by the service at the time you retire

The multiplier is limited to 75 percent by law using the disability percentage. The multiplier for years of service is no longer capped at 75%, unless your retirement date is prior to 1/1/2007. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.DFAS uses the method that results in the largest payment. But if you’d like to choose the other method, please send DFAS your request in writing.

Read more about **disability retirement** on the OSD website.

##### **Related Link:**

**Disability Retirement and Related Entitlements**

Page updated Sept. 22, 2023

### Stay Connected

Department of Defense     Department of Veterans Affairs     Military Employment Verification     Warrior Care Website     Defense Contract Mgmt Agency  DoD Forms     Department of State     Civilian Personnel Mgmt Service     DTS Travel Center     System for Award Mgmt (SAM)    Congressional/LegislationPersonnel Force Innovation     Freedom of Information Act     DFAS Hotline   Contact Us     Accessibility / Section 508    EEO / No Fear Act  

Hosted by Defense Media Activity - WEB.mil