FERS Military Buyback Calculator

The cost is typically:

• 3% of your military basic pay for each year of service
• Plus accrued interest (varies by year, currently ~5%)
• Interest accrues from the date you enter federal civilian service

Example ROI

4 years military service, $2,500/month basic pay:

• Cost: ~$3,600 (including interest)
• Annual pension increase: ~$3,520
• Break-even: Just over 1 year in retirement!
• Lifetime value (25 years): ~$88,000

How much does military buyback cost?

The cost is typically 3% of your military basic pay for each year of service, plus interest if you're no longer on active duty. For example, if you earned $30,000/year in the military and served 4 years, the base cost would be $3,600 (4 × $30,000 × 3%). Interest accrues from the date you became a federal employee.

Is military buyback worth it?

For most federal employees, yes! The break-even point is typically 3-5 years after retirement. Each year of military service adds to your total federal service, increasing your pension by: High-3 × 1% (or 1.1%) per year. Use our calculator above to see your specific ROI. Veterans should also read our complete guide to veteran FERS benefits.

When should I complete my military buyback?

The sooner, the better! Interest accrues from the date you became a federal employee. Completing the deposit early minimizes interest costs. You can pay in a lump sum or through payroll deductions. See our guide on retirement planning checklist for timing recommendations.

Does military service count toward the Special Retirement Supplement (SRS)?

Yes! If you buy back your military time, it counts toward your total years of service for SRS eligibility. The SRS bridges your income until Social Security kicks in at age 62. Estimate your SRS with our Special Retirement Supplement Calculator.

Can I buy back reserve or National Guard time?

Yes, but the rules are different. Reserve/National Guard time only counts if you were called to active duty. Regular drill weekends don't qualify for buyback. Contact your HR office for specifics about your situation.

What happens if I don't buy back my military time?

If you don't complete the buyback, your military service won't count toward your FERS pension calculation. However, it may still count toward Social Security credits. Compare scenarios using our Main FERS Calculator with and without military credit.