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How the SBP Premium and Payout Are Calculated
The Survivor Benefit Plan (SBP) uses two fixed percentages applied to whatever "base amount" you elect to cover at retirement — full retired pay, a reduced amount, or a specific dollar figure:
- Premium: 6.5% of the covered base amount, deducted from your retired pay every month for as long as you're both alive and paying (paid-up SBP ends premiums after 30 years of payment and reaching age 70).
- Survivor annuity: 55% of the covered base amount, paid to your beneficiary every month for their lifetime if you die first.
You don't have to cover your full retired pay. Electing a lower base amount reduces both the premium and the eventual annuity proportionally. Most retirees elect full coverage because the government-subsidized rate is difficult to match with private life insurance bought at the same age. For the full rules on cost, cancellation windows, and the SBP-DIC offset (eliminated in 2023), see the full SBP guide.
Frequently Asked Questions
Is this the official DFAS SBP calculation?
This tool applies the same two published percentages DFAS uses (6.5% premium, 55% annuity) to the retired-pay figures you enter. It's an estimate for planning purposes — your actual DFAS Retiree Account Statement (RAS) is the official record once you're retired and enrolled.
Where do I get my estimated retired pay to enter here?
Run your grade and years of service through the military retirement calculator first, then bring that monthly figure here to see the SBP premium and payout on top of it.
Does SBP premium change over time?
The 6.5% rate itself is fixed by law, but the dollar amount rises with your annual COLA increases since it's a percentage of your (growing) covered base amount. Paid-up SBP stops the premium entirely once you've paid for 30 years and reached age 70, while the 55% annuity continues.
Can I cover less than my full retired pay?
Yes. You can elect any base amount from a minimum floor up to your full gross retired pay. Choose "Custom dollar amount" above to model a partial-coverage election. Note that partial coverage means a smaller premium now but a smaller annuity for your survivor later.