Retiree Toolkit
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Military disability retirement pay calculator

Disability retired pay is the higher of two figures: your disability rating (Method A) or your years of service times your plan's multiplier (Method B), applied to your retired pay base. The multiplier is limited to 75%, and on the temporary list Method A uses at least 50%.

Disability retired list
Retirement plan

Legacy plans count 2.5% a year; the Blended Retirement System counts 2%.

The percentage your service's Physical Evaluation Board assigns, not the VA rating.

High-36 and BRS: the average of your highest 36 months of basic pay. Final Pay: your final basic pay.

Monthly disability retired pay, Method A

$2,000.00

Method A (rating)
$2,000.00 (40%)
Method B (years of service)
$1,250.00 (25%)
Yearly
$24,000.00

Gross, before SBP costs, taxes and any VA waiver.

How the two methods work

The Defense Finance and Accounting Service computes disability retired pay both ways and pays whichever is more beneficial. The Department of Defense defines the multiplier as either the percentage of disability determined by your service, or your years of creditable service times 2.5% (legacy plans) or 2% (BRS), and notes that in both cases the multiplier is limited to 75% by law.

  • Who retires: with less than 20 years of active service, a rating of 30% or higher qualifies for retirement; below 30% means separation. With 20 or more years, retirement is recommended regardless of the rating.
  • Temporary list: Method A uses a minimum of 50% while you are on the TDRL, and you need a physical examination at least every 18 months. Miss it and retired pay is suspended until the exam is done.
  • Permanent list: a stabilized rating of 30% or more moves you to the PDRL, and your pay is recalculated with the most current rating.

What the calculator leaves out

  • VA disability compensation and the dollar-for-dollar VA waiver. Chapter 61 retirees with less than 20 years cannot get CRDP; CRSC may apply. See CRDP vs CRSC.
  • Taxes. Some disability retired pay is excluded from federal income, depending on dates, combat-related injuries and what the VA would pay. IRS Publication 525, listed below, explains the rules.
  • Months of service beyond whole years, yearly cost-of-living adjustments, and your exact retired pay base. DFAS and your branch compute the official amount.

For a regular retirement based on years of service alone, use the military retirement pay calculator.

Check our work

Every figure on this page was read from these official documents. Follow the links and compare.