Military Disability Retirement Calculator

Enter your monthly retired pay base, years of service, DoD disability rating, and VA disability rating. The calculator uses the retired pay base as the pay amount to which the formulas apply; it does not independently calculate your High-36 average or verify your service record.

Then indicate whether you are eligible for CRDP or CRSC. If you select CRSC, enter the amount you expect to receive. The tax-rate field estimates taxes on the calculator’s taxable retired-pay amount; it is not a tax-return calculation and does not apply federal tax brackets, deductions, filing status, or state tax rules.

The result cards show gross monthly compensation, estimated after-tax compensation, estimated tax-free income, gross retired pay, VA compensation, and combined monthly totals. The method table compares longevity and disability calculations and identifies the method selected by the calculator.

The defaults are a $6,500 monthly retired pay base, 15 years of service, a 40% DoD rating, a 60% VA rating, CRDP eligibility selected, CRSC eligibility not selected, and a 22% tax-rate assumption.

First, calculate longevity pay:

Longevity percentage = 2.5% × years of service
Longevity pay = longevity percentage × monthly retired pay base

At 15 years, the multiplier is 2.5% × 15 = 37.5%. The calculator expresses this as 0.025 × 15 × $6,500 = $2,437.50, rounded to $2,438.

Next, calculate disability pay: 40% × $6,500 = $2,600. The higher method is disability pay, so gross retired pay is $2,600 per month. The 75% cap is $6,500 × 75% = $4,875, which does not reduce this result.

The default VA compensation estimate is $1,386 per month. The VA offset is the smaller of VA compensation and gross retired pay: min($1,386, $2,600) = $1,386. Because the entered VA rating is at least 50% and CRDP eligibility is selected, the calculator restores the offset in its CRDP logic. Estimated net retired pay remains $2,600.

The combined gross monthly amount is $2,600 + $1,386 = $3,986. The tax estimate is 22% × $2,600 = $572 per month, rounded. The calculator treats $1,386 as tax-free VA compensation, so estimated after-tax monthly compensation is $3,986 − $572 = $3,414. Annualized, that is $47,832 gross and $40,968 after tax. These are calculator estimates based on the inputs, not a statement of your actual award.

A VA offset occurs when VA disability compensation reduces some military retired pay. In this model, the offset cannot exceed either the VA compensation amount or gross retired pay. Without a restoration program, the default example would leave $2,600 − $1,386 = $1,214 in retired pay, plus $1,386 in VA compensation.

CRDP restores an offset for qualifying retirees. The calculator applies its CRDP restoration when the CRDP eligibility toggle is on and the VA rating is 50% or higher. In the default example, that restores $1,386, bringing modeled retired pay back to $2,600. CRDP is generally taxable as retired pay; it is not the same as receiving an additional tax-free VA payment. See the Defense Finance and Accounting Service CRDP overview.

CRSC is a separate, generally tax-free payment for qualifying combat-related disabilities. Eligibility depends on service and the combat-related basis of the disability, not only on the VA rating. This calculator compares an entered CRSC amount with its CRDP restoration amount and models the larger amount rather than stacking both restorations. Actual eligibility, amounts, and payment coordination are determined through the relevant military and service processes. The DFAS CRSC overview explains the program and application process.

A medical retirement and a VA disability award are separate decisions. DoD determines fitness for duty and assigns a disability rating for the military disability retirement process; VA evaluates service-connected conditions under its own rating system. A DoD rating below 30% can affect whether a member is medically separated rather than medically retired, subject to applicable rules and circumstances. Read the DoD overview of the Disability Evaluation System before treating a calculator result as an eligibility decision.

Longevity pay = 2.5% × years of service × monthly retired pay base

Disability pay = DoD disability percentage × monthly retired pay base
Gross retired pay = the lower of the higher method and 75% of the pay base

VA offset = the lower of VA compensation and gross retired pay
Tax estimate = taxable income × entered tax-rate percentage
After-tax monthly total = gross monthly total − estimated tax

The calculator rounds longevity pay, disability pay, the 75% cap, and estimated monthly tax to whole dollars. Its 75% cap and simplified tax-rate calculation are modeling assumptions; individual military pay computations and tax treatment can depend on retirement category, service history, combat-related status, and other details. For a separate estimate of retirement pay based on service history, compare with the Military High-3 Calculator and Military Retirement Pay Calculator.

These examples show how the formulas respond to different inputs. They are arithmetic illustrations of the calculator’s methods, not benefit determinations.

To test a different VA offset, change the VA rating and review the VA compensation estimate, offset, and restoration together. VA compensation varies by rating and dependent status; the calculator’s default result should not be treated as a universal rate. For retirement income planning beyond military benefits, you can compare expected income with a Disability Insurance Retirement Gap Calculator or Disability Benefit Offset Calculator.

The estimate separates tax-free income from taxable income using the calculator’s simplified rules. VA disability compensation is generally excluded from federal gross income, while military retired pay is generally taxable. CRSC is generally tax-free; CRDP is generally taxable. Your specific tax outcome may differ because of state rules, other income, deductions, filing status, and the way your benefits are classified.

The default tax assumption is 22%, applied as a flat rate to modeled taxable income. That is not a 22% effective tax rate calculated from a tax return, and it does not model marginal tax brackets. The IRS information on military retirement pay describes general federal tax treatment. For a tax-aware plan across accounts and income sources, review how to withdraw from retirement accounts tax-efficiently and the Tax-Efficient Retirement Withdrawal Calculator.

Use the calculator to compare scenarios, then verify benefit details against official records. If your retired pay base is not known, estimate it separately with the Military Pension Calculator. To see how pension income fits with personal savings, use the Retirement Needs Calculator.

Does the DoD disability rating determine the VA rating?

No. DoD and VA ratings are issued through separate processes and may differ because they evaluate different things. This calculator accepts both ratings as independent inputs.

Why can a VA award reduce military retired pay?

The VA offset is a coordination rule that can reduce retired pay when a retiree also receives VA disability compensation. CRDP or CRSC may restore some or all of the offset for people who qualify, but the programs have different eligibility and tax rules.

Can I receive CRDP and CRSC at the same time?

The programs generally cannot be received concurrently for the same period. Eligible retirees may have a choice or may be subject to program coordination rules. The calculator models one restoration outcome rather than adding both benefits together.

Is a 50% VA rating enough to qualify for CRDP?

A VA rating of at least 50% is one condition used in the calculator’s CRDP logic, but it does not establish complete eligibility. Retirement category, length of service, and other rules may apply. Verify eligibility with the appropriate military pay office.

Should I enter CRSC eligibility if my disability is service-connected?

Not automatically. CRSC requires qualifying combat-related conditions and an approved application; service connection alone does not establish that a condition qualifies as combat-related.

Is the after-tax amount what I will receive in my bank account?

No. It is a simplified estimate using the entered tax rate. Actual deposits may differ because of tax withholding, insurance premiums, allotments, debt collection, and other deductions.

What should I check before relying on the result?

Confirm your retired pay base, years of service, DoD and VA ratings, dependent information, and program eligibility using official records. Then compare the estimate with your award statements and tax situation.