Military Buyback Calculator

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A Note from Our Founders:

As veterans and career federal employees, we created MyFedPlan to continue our lifetime of service. This tool is our gift to the veteran community—an acknowledgement of your dedication. It will always be free and free from ads. It's simply vets helping vets.

This detailed tool helps you decide if buying back your military time for FERS credit is the right financial move for you.

🔒 Your Privacy Protected: For your security, we do not store any of your financial information. All calculations are performed in your browser and cleared when you close it.

Understanding the Military Service Buyback

Buying back your military service allows you to make a deposit to your civilian retirement fund to get credit for your military time under the FERS system. This can increase your FERS pension, but it's a complex decision with significant financial implications.

How it Works: The 3-Step Process

Request Your Records: Obtain your estimated military earnings from your branch of service (e.g., via DFAS).
Calculate & Pay the Deposit: Your agency HR will calculate the exact deposit amount. For FERS, it's typically 3% of your total military base pay. You have a 2-year interest-free grace period from your FERS entry date to pay this. After that, interest accrues annually.
Waive Military Retired Pay: If you complete the buyback, you cannot receive both your FERS pension credit and your military retirement pay for the same period of service.

A Critical Warning for Military Retirees

If you are already receiving military retirement pay, exercise extreme caution. Waiving your military pension is a major financial decision. Military retirement after 20 years is typically 50% of your base pay, while FERS credit is only 1% (or 1.1%) per year.

Example: Keeping a $25,000/year military pension and adding a $20,625 FERS pension often results in a higher total income ($45,625) than waiving the military pay for a combined FERS pension of $37,125. Our Comparison Tool is designed to help you run these exact numbers.

Survivor Benefits (SBP): Waiving your military pension also means you give up eligibility for the military's Survivor Benefit Plan (SBP). You must then elect the FERS survivor annuity to provide for your spouse.

Who Should Consider This?

Veterans Not Receiving Retired Pay: If you served but didn't reach 20 years for retirement, buying back your time is almost always beneficial.
High-Earning Feds: The higher your FERS High-3 salary, the more valuable each year of service becomes, potentially outweighing your military pension.

Total Military Base Pay Earned ?

Years of Military Service ?

I've been a FERS employee for more than 2 years

Check this box to include estimated interest in your deposit calculation

An Important Note on Finality

Once your military service deposit is fully paid and the buyback is finalized with your agency, the decision is **generally irreversible**. It can only be undone under very rare circumstances, such as a documented administrative error. Please consider this decision carefully.

Important Notes

This calculator provides estimates based on current FERS rules and regulations.
Always consult with your agency's HR department for official calculations.
The deposit amount shown is an estimate - actual costs may vary based on interest accrual.
Consult with a financial professional for personalized advice.