📈 Financial Tool
Military Retirement Pay Calculator
Estimate your combined military retirement and VA disability income. Understand CRDP (50%+ gets both with no offset) and CRSC for combat-related disabilities.
Read Disability Rating GuideEstimate your combined military retirement and VA disability income. Understand CRDP (50%+ gets both with no offset) and CRSC for combat-related disabilities.
Read Disability Rating GuideMilitary retirement pay and VA disability compensation interact in ways that significantly affect your total monthly income. Understanding how they combine — and the exceptions that allow you to receive both simultaneously — can mean thousands of dollars per year in additional income you may be leaving on the table.
2.5% x years of service x highest month's base pay. Applies to those who entered before September 8, 1980.
2.5% x years of service x average of highest 36 months of base pay. Most common system for 20-year retirees separating today.
2.0% x years of service x average of highest 36 months of base pay, plus TSP with matching contributions. Slightly reduced pension in exchange for government TSP contributions.
| Rank at Retirement | Base Pay (approx) | Monthly Retirement (50%) | Annual Retirement |
|---|---|---|---|
| E-7 (MSG/GySgt/CPO) | $4,983-$6,100 | $2,500-$3,050 | $30,000-$36,600 |
| E-8 (SFC/MSgt) | $5,765-$7,100 | $2,882-$3,550 | $34,584-$42,600 |
| E-9 (SGM/CSM/MCPON) | $6,600-$8,500 | $3,300-$4,250 | $39,600-$51,000 |
| O-4 (Major/LtCdr) | $6,400-$8,600 | $3,200-$4,300 | $38,400-$51,600 |
| O-5 (LtCol/Cdr) | $7,600-$10,200 | $3,800-$5,100 | $45,600-$61,200 |
| O-6 (Col/Capt Navy) | $8,990-$11,900 | $4,495-$5,950 | $53,940-$71,400 |
These are approximate figures based on 2025 pay rates and 20 years of service. Actual retirement pay varies based on specific years of service, high-3 average, and any additional service. Use the official military retirement calculator at militarypay.defense.gov.
The default rule is offset: VA disability compensation reduces your military retirement pay dollar-for-dollar. But there are two major exceptions that allow you to receive both simultaneously:
If you are a military retiree with a VA disability rating of 50% or more, CRDP allows you to receive your full military retirement pay AND your full VA disability compensation simultaneously, with no offset. CRDP is automatically granted — you do not need to apply separately. It phases in for ratings exactly at 50% over a few years.
CRSC applies if your disabilities are combat-related (or training for combat). It allows military retirees with ANY disability rating to receive tax-free CRSC pay in addition to a portion of their retirement pay. Unlike CRDP, CRSC requires a separate application through your branch. CRSC is generally better than CRDP only in specific situations — compare both based on your specific rating and retirement pay.
Your disability rating directly determines your VA compensation and your CRDP eligibility. Understand how ratings are assigned.
Read the Disability Rating Guide