Military Buyback CalculatorFERS Military Deposit Cost, 2026 Interest & Pension Payback
A FERS military buyback costs 3% of the military basic pay you earned, interest-free for two years after you start federal work, and each year bought adds 1% (1.1% at 62+) of your civilian High-3 to your pension for life. Enter your military earnings and federal details to see the deposit, estimated interest, the extra annuity and how fast it pays for itself.
Rates from OPM FERS service credit guidance, 5 U.S.C. 8422(e) and OPM BAL 26-301 (2026 interest rate).
What you get for it
How the FERS military buyback works
A military buyback (military deposit) lets a federal civilian employee count active-duty military service toward a FERS pension. Under FERS the deposit is 3% of the military basic pay you earned (3.25% for 1999 and 3.4% for 2000), interest-free if paid within two years of starting FERS-covered work, then with interest at the Treasury rate (4.25% for 2026).
Each bought-back year adds 1% of your civilian High-3 to your FERS annuity every year (1.1% if you retire at 62 or older with 20 or more years), and the years count toward retirement eligibility such as MRA+30.
The formulas
OPM’s handbook example: $6,430 of basic pay × 3% = $192.90, rounded to $193. Your exact basic pay earnings come from your service’s finance center on form RI 20-97.
Deposit rates by period
| Period of military service | FERS deposit | CSRS deposit |
|---|---|---|
| Service before 1999 and after 2000 | 3% | 7% |
| Service during 1999 | 3.25% | 7.25% |
| Service during 2000 | 3.4% | 7.4% |
Check this before you pay
If you receive military retired pay, you must waive it to count the same years for FERS, unless it is based on a combat disability or reserve retirement at 60.
VA disability compensation does not block a buyback or need to be waived.
The deposit must be paid in full before you separate from federal service, usually through payroll deduction or a lump sum via your agency.
Active duty for training and mobilizations generally count; inactive drill weekends do not.
How to use this military buyback calculator
- Enter your military basic pay earnedTotal from your RI 20-97 estimated earnings; split out 1999 and 2000 if any.
- Enter years of service to creditYears and months of active duty you are buying back.
- Add your FERS detailsYears since FERS hire, expected civilian High-3 and multiplier.
- See cost and paybackDeposit, estimated interest, extra annuity and years to break even.
Related military calculators
Every pay, retirement, VA, PT test, ASVAB and time tool in one place, filtered by who you are.
Compare keeping military retired pay with crediting the years to FERS.
Plan the rest of your retirement income around the FERS annuity.
Military buyback FAQ
Under FERS, 3% of the military basic pay you earned (3.25% for 1999 and 3.4% for 2000). Four years with $120,000 of basic pay costs $3,600 if paid in the interest-free window.
Usually. Four years at a $90,000 High-3 adds $3,600 a year to your FERS annuity for life, so a $3,600 deposit pays for itself in about a year of retirement.
4.25% for calendar year 2026, per OPM Benefits Administration Letter 26-301. Interest compounds annually after the two-year interest-free period.
Request your estimated earnings (RI 20-97) from your branch’s finance center, then submit form SF 3108 (FERS) through your agency’s HR office.
Yes. VA compensation does not need to be waived and does not affect the deposit.
Only if they waive military retired pay, unless that pay is for a combat-related disability or is reserve retired pay at 60.
Yes. The deposit must be paid in full before you separate from federal service for it to count.
People also search for:
Manzoor Ahmad
Calculator developer & web designer · 13+ years in web development and SEO
Last reviewed: October 30, 2026I am a pharmacist turned tech geek, and I design, code and test every calculator on DexoCalc myself. I have not served in the military, so this tool does not run on opinion: the deposit rates come from 5 U.S.C. 8422(e) and OPM’s service credit guidance, checked against the $6,430 worked example in OPM’s CSRS/FERS Handbook, with the 4.25% 2026 rate from OPM BAL 26-301.
Spot a result that does not match an official source? Tell me and I will re-check it.
Sources
- OPM: FERS service credit
- OPM BAL 26-301: Calendar year 2026 interest rate
- 5 U.S.C. 8422: Deductions from pay; contributions for other service
Disclaimer: DexoCalc is independent and not affiliated with the Department of Defense (Department of War), the Department of Veterans Affairs or any military branch. Results are educational estimates; official records and your chain of command decide.
Keep this tool one tap away
Add DexoCalc to your Google Preferred Sources or bookmark this page so it is there the next time you need it.