FERS High-3 Calculator: Project Your Federal Retirement Salary Average
Use this guide to understand the assumptions, inputs, results, and next steps behind the calculator.
Created by Luis Gonzalez · Last updated August 2, 2026
A FERS high-3 is the highest average basic pay earned during any three consecutive years of service. It is a central input in the FERS basic-annuity formula, so salary history near retirement can affect pension income for the rest of retirement. This calculator projects annual salary from current pay and an assumed raise rate, finds the highest three consecutive projected years, and estimates an annuity using service years and retirement age.
The high-3 is not necessarily your final salary or the average of your three best individual years. The years must be consecutive, and the pay definition used for the official benefit may exclude some compensation. Check your personnel and retirement records before relying on a projection. For the broader pension estimate, use the FERS annuity calculator.
Enter Salary Growth and Retirement Timing
Enter current annual salary, expected annual raise percentage, and years until retirement. The calculator projects salary for each year, including the current year, then compares consecutive three-year windows. If you already know the three salary amounts you want to use, the override fields can replace the projection when override mode is enabled and all three amounts are positive.
Years of service and retirement age are separate inputs. In this calculator they determine whether the estimated annuity uses the 1.0% or 1.1% multiplier and how much annual pension the projected high-3 might support. They do not change the high-3 average itself.
The default inputs are $95,000 current salary, a 3% annual raise, and 10 years until retirement. The selected high-3 years are projection years 8, 9, and 10.
Default Example: Identify the Three-Year Average
With 3% annual salary growth, the calculator compounds current salary each year. Its default projection identifies year 8 at $120,343 and year 10 at $127,672. The intervening year 9 salary is $123,952. The three consecutive salaries add to $371,967:
Year 8 salary + year 9 salary + year 10 salary =
$120,343 + $123,952 + $127,672 = $371,967
Then divide by the three years:
High-3 average = $371,967 ÷ 3 = $123,989
The calculator reports a high-3 monthly equivalent of $10,332, calculated as $123,989 ÷ 12 = $10,332.42, rounded to $10,332. With retirement age 62 and 25 service years, the modeled multiplier is 1.1%, and the estimated annual FERS annuity is $34,097, or $2,841 monthly. This is an estimate based on the calculator’s inputs, not an official benefit determination.
What Counts as High-3 Pay?
The high-3 is based on basic pay, not necessarily every dollar shown on a paycheck. Overtime, bonuses, allowances, and other forms of compensation may not count as basic pay for the annuity formula. Some locality pay and special salary components may be treated according to federal retirement rules. Verify which pay elements are creditable before entering a single “salary” number.
The high-3 period can occur before the last three years of employment if pay was higher earlier. With steady salary growth, the highest projected three-year window will usually fall near the end of the projection. If your salary changes irregularly, use the override option or enter a more realistic raise assumption; a single average raise rate can smooth over promotions, locality changes, or pay freezes.
Use OPM’s FERS retirement information and your agency’s retirement estimate to confirm how basic pay and service are recorded. A salary projection is useful for planning but cannot verify your individual service computation.
Why the High-3 Affects the Annuity
The FERS basic annuity is generally calculated by multiplying high-3 average salary by service years and a percentage multiplier. The calculator uses a 1.1% multiplier if retirement age is at least 62 and service is at least 20 years; otherwise it uses 1.0%.
Projected annual FERS annuity =
high-3 average × multiplier × service years
For the default, the calculator reports a high-3 of $123,989, 25 service years, and a 1.1% multiplier. Its displayed annual annuity result is $34,097. Recomputing solely from rounded displayed inputs gives $123,989 × 1.1% × 25 = $34,097.0, matching the result.
A higher high-3 can increase the pension, but a raise also affects take-home pay, savings, and possibly other benefits. Do not assume that every raise during a career enters the high-3: only the highest three consecutive years of qualifying basic pay are averaged.
Test Salary and Service Scenarios
Use the output table to see salary by projection year and which years the calculator identifies as part of the high-3. A marked year is included in the selected three-year period. Run a few variations to distinguish the effect of salary growth from the effect of service or retirement age.
| Scenario | Change from default | Expected effect |
|---|---|---|
| Smaller raises | Change annual raise from 3% to 2% | Lowers projected salaries and usually lowers the high-3 average. |
| Faster raises | Change annual raise from 3% to 4% | Raises the projected salary path and usually increases high-3. |
| Earlier retirement | Change years until retirement from 10 to 6 | Selects a nearer three-year window and may reduce the projected average. |
| More service | Change service from 25 to 30 years | Leaves high-3 unchanged but raises the estimated annuity. |
These are directional tests, not precomputed dollar outputs. If future pay is uncertain, use a conservative and an optimistic raise assumption, then compare each pension estimate with other retirement income. The FERS Pension Calculator can model pension payments and COLA assumptions, while the FERS annuity supplement calculator estimates a separate temporary benefit.
Next Steps: Connect High-3 to Your Retirement Plan
Check that your salary inputs reflect creditable basic pay and that the three selected years are consecutive. Compare the projection with your official agency estimate, especially if you expect promotions, a move to a different locality, or an unusual pay change.
Then use the high-3 estimate as one part of a retirement plan. Pair it with the FERS annuity calculator and FERS Retirement Calculator, and account separately for the TSP, Social Security, and any supplement. To see how the pension may fit alongside savings withdrawals, try the retirement withdrawal calculator and how long will my money last calculator.
Frequently Asked Questions
Quick answers to the questions people usually have after running the retirement calculator.
1Is high-3 the same as my last three salaries?
No. It is the highest average of three consecutive years of qualifying basic pay, which may or may not be your final three years. A previous period with higher pay can produce the high-3.
2Does overtime count in my high-3?
Not necessarily. The FERS formula generally uses basic pay, and overtime or other additional compensation may be excluded. Check your official pay records and OPM guidance rather than adding every paycheck component.
3Should I use my current salary or my projected retirement salary?
Use current salary as the starting point when using projected raises. If you already have credible estimates for the relevant three consecutive years, the override fields can provide a more direct estimate. Avoid using a projected salary that includes compensation not credited to the annuity.
4Should I assume 3% raises every year?
Only if that assumption is reasonable for your career and pay system. Promotions, locality adjustments, freezes, and changes in work status can make salary growth uneven. Compare multiple raise assumptions instead of treating one rate as certain.
5Does increasing service years increase the high-3?
No. Service years do not change the average salary calculation. They affect the annuity calculation that uses the high-3. The calculator displays both so you can see how the salary base and service multiplier contribute separately.
6Why does the calculator show a 1.1% multiplier?
Its rule applies 1.1% when retirement age is at least 62 and years of service are at least 20; otherwise it applies 1.0%. Confirm that your retirement circumstances meet the applicable federal rules before relying on this simplified estimate.