Military Retirement CalculatorAll three systems. Real numbers. No fine print.

The canonical milestone is 20 years of qualifying active service. At 20 years you become eligible for an immediate, lifetime, COLA-adjusted pension. For most active-duty service members, this is the only door to a regular military retirement; cross it and the pension begins the month after you separate, no matter how old you are. Stop short of it — even by a single day, in most cases — and there is no traditional pension.

Reserve and National Guard retirement uses the same 20-year milestone, but expressed in qualifying years (a year is a year in which you earn at least 50 retirement points). The pension begins at age 60 by default, not at retirement-from-service date. Each 90 consecutive days of active duty served under specific federal mobilization authorities after January 28, 2008 reduces the age-60 start date by 3 months, with a floor of age 50.

Medical retirement under Chapter 61 of Title 10 is the other route. Service members found medically unfit by a Physical Evaluation Board with a rating of 30% or higher are involuntarily retired regardless of years of service. The pension uses the larger of: (a) the disability percentage, capped at 75%, times the retired pay base, or (b) 2.5% × YOS × retired pay base. Medical retirement comes with lifetime TRICARE and, in most cases, eligibility for separate VA compensation.

Temporary Early Retirement Authority (TERA)periodically opens a window for 15-19 year retirements at a reduced multiplier (typically 1.0-2.25% × YOS, depending on year). TERA is rare and announced service-by-service; it is not a stable planning assumption.

Reserve and National Guard retirement is calculated on retirement points, not on calendar years alone. Every form of duty earns points:

• ▸One point per drill period — typically 4 per UTA weekend
• ▸One point per day of annual training (typically 14 days/year = 14 points)
• ▸One point per day of active duty (mobilization, ADOS, ADT, AT)
• ▸15 membership points per year just for remaining in good standing
• ▸One point per 3 hours of correspondence-course / IDT-time, capped annually

A standard 20-year Reserve career typically accumulates 4,000-5,000 retirement points total. Pension is then calculated:

The dividing-by-360 step converts your career's total points into equivalent active-duty years. A 4,500-point career equals 12.5 equivalent active years for pension purposes, even if the calendar years served are 20+. Reserve careers therefore generally produce smaller pensions than the same calendar length of active service — but Reservists can usually also work a full civilian career, often with a second pension or 401(k). The combined retirement income is frequently equal to or better than active-duty alone.

See Retirement Points for the full point chart and MUTA & M-Day for the duty-status breakdown.

Chapter 61 of Title 10 (specifically 10 USC §§ 1201-1222) governs medical retirement and separation. Service members referred to the Disability Evaluation System (DES) with conditions that render them unfit for continued service are evaluated, rated by the VA, and then routed to one of four outcomes:

• Fit for Duty
  Return to service. No retirement implication.
• Separation w/ severance
  Under 30% disability rating or under 20 YOS without other criteria. Lump-sum severance; no pension.
• Temporary Disability Retired List (TDRL)
  30%+ rating but condition not yet stable. Periodic re-evaluation over up to 3 years. Receive retired pay during TDRL.
• Permanent Disability Retired List (PDRL)
  Final medical retirement. Lifetime pension under Chapter 61 formula. Lifetime TRICARE.

Chapter 61 retired pay is computed as the larger of: disability percentage (capped at 75%) times retired pay base, OR 2.5% × YOS × retired pay base. The retired pay base is final basic pay (Final Pay system) or High-3 (High-3 / BRS systems). Service members under 8 years of service whose disability is determined to be pre-existing and not service-aggravated may be separated without benefits — a contested area of military medical separation.

For the full Chapter 61 pipeline, the IDES timeline, and the MEB → PEB sequence, see Chapter 61 Medical Retirement and MEB Navigator.

The default rule, since the early 20th century, was that you could not receive military retirement and VA disability compensation simultaneously without a dollar-for-dollar offset. Starting in 2004 and progressively expanded through 2014, Congress authorized two concurrent-receipt programs:

You can elect either CRDP or CRSC, not both. DFAS publishes annual letters comparing the two for retirees eligible for both — most retirees with 100% VA ratings benefit slightly more from CRSC because of the tax treatment, but the math is individual.

For the side-by-side decision tool, see CRDP vs CRSC Calculator.

SBP is the only way to continue your military retirement pay to a surviving spouse after your death. The default — what happens if you do nothing at retirement — is full SBP coverage at the maximum premium. If you want to decline or reduce coverage, you must do so affirmatively at retirement with your spouse's notarized concurrence.

The 2023 elimination of the SBP-DIC offset is the most important SBP development in decades. Previously, surviving spouses who qualified for VA Dependency and Indemnity Compensation (paid when the veteran death was service-connected) had their SBP annuity reduced dollar-for-dollar by the DIC amount — often eliminating the SBP benefit entirely. As of January 1, 2023, surviving spouses receive both benefits in full. For any retiree with significant service-connected disabilities, the SBP value proposition is far stronger than it was even three years ago.

Run the SBP decision under your specific numbers in the SBP Decision Calculator and read the policy deep-dive at SBP Decoded.

Federal income tax applies to military retirement pay regardless of where you live — it is ordinary income. State income tax is the wildcard, and the rules have shifted dramatically in the last decade: state after state has moved to full or partial exemption of military retirement income, partly as a competitive recruiting tool for veteran workforce.

The state-by-state breakdown is detailed and changes annually as state legislatures pass new exemptions. As of the 2026 tax year, more than 35 states fully exempt military retirement pay from state income tax. Several others provide partial exemptions based on age, total income, or disability status. A small number — most notably California — still fully tax military retirement at ordinary state income tax rates.

What this means in practice: on a $40,000 annual military pension, moving from a fully-taxing state to a fully-exempting state can be worth $2,000-$3,500 per year, every year, for life. Over a 30-year retirement that compounds to six figures of additional take-home — often more than the marginal decision between Final Pay and High-3, and certainly more than the SBP/no-SBP decision for most families.

The state tax map intersects messily with the VA disability tax exclusion (VA compensation is never federally or state-taxed) and with the Survivor Benefit Plan annuity (taxable to the surviving spouse as ordinary income). Plan all three together, not in isolation.

The retirement calculator runs the numbers. What it cannot show you is the financial chaos of the first 12 months, which is where most veteran-services counselors say the avoidable money is left on the table:

• First retirement check

  Often arrives 30-45 days after retirement effective date. DFAS pays in arrears. Plan a cash cushion.
• SBP starts immediately

  If you elected SBP, the 6.5% premium comes out of your very first check, before you have stabilized anywhere.
• VA claim timing

  A separately-paid VA disability rating, retroactive to discharge, often arrives months after retirement. Plan as if it is not coming.
• TRICARE transition

  Active TRICARE Prime ends at retirement; TRICARE Select / Prime for Retirees has different cost-shares and enrollment windows. There is no automatic re-enrollment.
• Medicare Part B at 65

  If you delay Part B enrollment beyond age 65, you may face permanent premium penalties and lose access to TRICARE for Life. Decision is irrevocable.
• Withholding shock

  DFAS withholds federal tax at single-no-dependents by default until you submit a new W-4P. Your first checks will look short.

For the full first-year sequence and timeline, see First Year After Retirement.