Estimate the cost of buying back your military service time for federal retirement credit, and see whether it's worth it.
Quick Estimate (Free)
Just 4 fields to see your buyback cost.
Your approximate average annual base pay while serving (not BAH, BAS, or bonuses). Look up military pay tables →
Everything you need to know about buying back military time
Add time to your pension
Pay a deposit (3% of military base pay) to credit military years toward federal retirement.
~1% more pension per year
Each year bought back increases your pension rate, boosting your monthly payment for life.
Interest-free for 3 years
Pay within 3 years of your federal hire date and there's no interest. After that, it compounds annually.
Pays for itself fast
Most people recoup the full cost within the first year of retirement. Must be completed before you retire.
Typical timeline: 3-6 months from start to finish. Start early.
See what your full retirement package is worth
Calculate the present value of your entire FERS retirement — pension, RAS supplement, and more — and compare it against outside job offers.
Open Retirement CalculatorFor FERS employees, the cost is 3% of your total military basic pay. For CSRS employees, it's 7%. If you pay within 3 years of your federal hire date, there's no interest. After that, interest compounds annually at rates set by OPM (currently around 4-5%).
In most cases, yes. You typically recoup the full cost within the first 1-2 years of retirement through increased pension payments. The extra pension continues for life, often resulting in 5-10x return on your investment over a full retirement.
You must complete your buyback before you retire from federal service. There's no deadline while you're still working, but interest accumulates after your 3-year grace period ends. The sooner you pay, the less you'll owe.
OPM sets the interest rate annually based on Treasury yields. For 2026, the rate is 4.25%. Interest compounds once per year on the anniversary of your grace period ending.
You can only buy back active duty time. Weekend drills and annual training for reserves/National Guard don't count. However, if you were activated for deployments or called to active duty, that time is eligible.
No, you can buy back a portion of your military service. However, most people buy back all of it since the cost-benefit ratio is so favorable. Partial buybacks are rare and may complicate recordkeeping.
Your military service won't count toward your federal pension. You'll have fewer years of creditable service, resulting in a lower monthly pension payment for life. You may also need to work longer to reach retirement eligibility.
If you receive military retirement pay, you must waive it to get credit for your buyback time. This is usually not worth it—the military pension is typically more valuable than the civilian pension increase. Compare both carefully before deciding.
First, get your DD-214. Then request your military earnings statement using form RI 20-97. Submit these with form SF-3108 (FERS) or SF-2803 (CSRS) to your HR office. They'll calculate your exact cost, and you can pay via lump sum or payroll deduction.
Yes. If buyback pushes your total creditable service to 20+ years and you retire at age 62 or older, you qualify for the 1.1% multiplier on ALL your service years instead of 1%—a significant boost.
Enter your information above to see your buyback cost.