What If I Retire? Military Retirement + VA Disability, in One Answer
Retirement calculators tell you your pension. VA calculators tell you your VA pay. Neither tells you what actually lands in your bank account when you have both — because of the waiver. This calculator does all of it at once: gross retired pay, VA pay, the waiver, CRDP, and CRSC, with the tax label on every line.
The calculator
Worked example: E-7, 20 years, High-36, 30% VA, spouse and two children
This is the example veterans keep asking for, worked end to end so you can check the calculator against it. Assumptions, all labeled: High-36 system; 20 years; an estimated High-36 average of $5,851.33 per month, from the rank estimator above for an E-7 retiring in October 2026 who held E-7 for all 36 months — the 2026 basic pay rate for an E-7 over 20 years is $6,245.70, but the High-36 average blends earlier months at lower rates and lower longevity steps, so it sits below that rate. If you held E-7 for only the last 12 months and E-6 before that, the same estimator gives $5,312.67 instead — that promotion history is worth $538.66 a month of High-36, or $269.33 a month of retired pay at 50%. Use your own DFAS figure in the calculator if you have it; it always wins over the estimate. VA rating 30%; household: spouse and two children under 18; 2026 VA table, effective December 1, 2025.
| Line | Monthly amount | Tax / notes |
|---|---|---|
| Gross retired pay: 50% × $5,851.33 (20 years × 2.5%, rounded down to the dollar) | $2,925.00 | Taxable, before waiver |
| VA pay, 30%, spouse + 2 children under 18 (2026) | $698.47 | Tax-free. Spouse + 1 child base $666.47, plus $32.00 for the second child under 18. |
| Waiver: retired pay reduced by VA pay | −$698.47 | 38 U.S.C. 5304/5305 — you trade taxable dollars for tax-free dollars. |
| Residual retired pay from DFAS | $2,226.53 | Taxable |
| Total cash: residual + VA pay | $2,925.00 | Same gross as retired pay alone — but $698.47 of it is now tax-free. That tax saving is the whole point of the waiver at 30%. |
| CRDP | $0 | Not eligible: CRDP needs 50%+ VA and 20+ years. This household has the years but not the rating. |
What changes at 50%? Same E-7, same High-36, same household, rated 50% instead of 30%: VA pay becomes $1,376.90 per month (spouse + 1 child $1,322.90, plus $54.00 for the second child). CRDP now applies and restores the full waiver, so DFAS pays the full $2,925.00 plus VA pays $1,376.90 — a total of $4,301.90 per month, vs $2,925.00 at 30%. The 50% line is worth $1,376.90 a month in this example, not just the VA increase — because it unlocks CRDP. That is why the 50% threshold matters more than any other single rating step for a 20-year retiree.
What about CRSC at 30%? If all 30% were branch-certified combat-related, CRSC would be min($698.47 combat VA, $698.47 waived) = $698.47, tax-free, and the total would be $2,226.53 + $698.47 + $698.47 = $3,623.47. If only part of the rating is combat-related, CRSC is smaller — enter your combat-related combined rating in the calculator and it prices it. DFAS pays the greater of CRDP and CRSC, never both.
How each line is computed
- Gross retired pay = multiplier × retired pay base, rounded down to the nearest dollar by DFAS. Multiplier: High-36 and Final Pay 2.5% per year (20 years = 50%, 30 years = 75%, and it keeps accruing past 30); BRS 2.0% per year (20 years = 40%). Reserve/Guard: years = points ÷ 360.
- VA pay = the official 2026 VA table for your rating and household, from the same rate data as the VA pay calculator. At 10% and 20%, dependents add nothing. At 30% and above, dependent amounts apply.
- Waiver = min(VA pay, gross retired pay). Residual retired pay = gross − waiver, floored at $0. If VA pay exceeds gross retired pay, the residual is $0 and you keep the full VA amount — the waiver cannot take you below zero.
- CRDP = full waiver restored, but only if rating ≥ 50% and years ≥ 20, for length-of-service retirees. Chapter 61 medical retirees: CRDP is capped at the longevity-equivalent amount, which this calculator does not compute — check DFAS for your cap rather than assuming full restoration.
- CRSC = min(combat-related VA amount, waived amount). The combat-related VA amount here uses the same household as the total VA amount, and is labeled an estimate on the result, because DFAS's treatment of dependents in that amount is not yet verified from a primary source.
- Tax labels, not tax math: VA pay and CRSC are tax-free; residual retired pay and CRDP are taxable. This page does not estimate your tax bill — no bracket is assumed.
Frequently asked questions
What if I retire at 22 or 24 years instead of 20?
Every extra year adds 2.5% of your High-36 average under High-36 (2.0% under BRS). On a $5,851.33 base, each extra High-36 year is $146.28 a month; each extra BRS year is $117.03. Change the years in the calculator and watch the gross, the waiver, and the CRDP line move together — CRDP, where it applies, restores the waiver whatever the years, so the gain from extra years is fully kept.
Does my VA rating change my retired pay base?
No. Your retired pay base is basic pay history. Your VA rating changes how much of that retired pay you waive, and whether CRDP or CRSC restores it. It never changes the base itself.
I am Guard/Reserve. When does my pay start?
Generally at age 60, with earlier-start rules for certain mobilizations that this calculator does not model. Enter your points and the calculator prices the monthly amount; the start date is a separate DFAS question.
Is this the same as the DFAS retirement estimator?
No. DFAS's estimator prices retired pay alone. This calculator prices retired pay plus VA pay, the waiver, CRDP, and CRSC in one answer — the combination DFAS's tool does not show, and the reason veterans end up surprised by their first DFAS check after a VA award.
Where do I verify my numbers?
Your DFAS Retiree Account Statement for retired pay, CRDP, and CRSC; your VA award letter for your rating and household. If either disagrees with this page, the statement and the letter govern.
Sources
- 10 U.S.C. 1407 (retired pay base), 1409 (retired pay multiplier), 1414 (CRDP), 1413a (CRSC); 38 U.S.C. 5304/5305 (waiver); DoD Financial Management Regulation, Volume 7B.
- VA.gov — Current veterans disability compensation rates (2026, effective December 1, 2025).
- 2026 E-7 over-20 basic pay rate $6,245.70, from the DFAS 2026 pay tables as reported by multiple pay-table publishers (used here only as context for the estimated $5,851.33 High-36 average for an October 2026 E-7 retiree — the calculator uses the base you enter, or the rank estimator above, never a single today's rate for a rank).
Estimates only. DFAS and VA govern. This site is independent, not affiliated with VA or DoD, and does not provide accredited claims representation.