SBP Premium Calculator (Survivor Benefit Plan)
Introduction: what SBP costs now and what it pays your survivor later
The Survivor Benefit Plan (SBP) is a Department of Defense annuity program that lets a retiring service member convert part of a pension — which otherwise stops at death — into a lifetime, inflation-adjusted income stream for an eligible survivor. In exchange the member accepts a reduction in retired pay. That reduction is taken before federal income tax, so the effective cost is lower than the sticker premium, and it eventually stops entirely once the coverage is paid up.
This page estimates the four numbers that actually drive the election decision:
- Monthly premium — the reduction in retired pay, normally 6.5% of the elected covered base amount, with the older threshold formula applied automatically when it produces a lower figure.
- Survivor annuity — 55% of the elected base amount, the flat rate that has applied to every payment since April 2008.
- Paid-up point — the month the reduction stops, which is the later of the 360th premium payment and your 70th birthday.
- Break-even — how many months of annuity it takes for the survivor to recover everything the retiree paid in.
Treat the output as a planning estimate. SBP is nuanced: Reserve Component elections, disability retirements, child coverage and former-spouse orders all change the arithmetic, and only DFAS can quote your actual deduction.
Key terms behind every SBP election
- Covered base amount (B): the slice of retired pay you choose to insure. Under 10 U.S.C. 1447(6) it may be your full gross retired pay, or any lesser figure that is not less than $300 per month, designated with the spouse's concurrence where that concurrence is required. It is not automatically your whole pension.
- Threshold amount (T): the dollar figure that the 2.5% factor of the older premium formula applies to. It rises with the active-duty basic pay raise; it is $1,096 effective 1 January 2026, up from $1,056.
- Coverage category: spouse, spouse and child, child only, former spouse, or insurable interest. Each has its own pricing rule, and insurable interest is priced off gross retired pay rather than an elected base amount.
- Premium: the reduction applied to retired pay, taken before federal income tax.
- Survivor annuity: the monthly payment made to the eligible beneficiary after the retiree's death, indexed by the same cost-of-living adjustment that applies to retired pay.
- Paid-up coverage: the status reached under 10 U.S.C. 1452(j) after the later of 360 monthly reductions and age 70, after which coverage continues for life with no further premium.
How to Use the SBP Premium Calculator
- Enter your gross monthly retired pay. It is not decoration: it caps the legal base amount, and it is the entire pricing basis for an insurable-interest election. A zero or negative entry is rejected rather than silently divided into.
- Enter the covered base amount in monthly dollars, anywhere from the $300 floor up to that gross retired pay. If you type a base above your retired pay the tool refuses the scenario instead of quoting an impossible premium.
- Choose the coverage category. Spouse, spouse and child, and former spouse all use the 6.5% rule; child-only is shown as a conservative ceiling; insurable interest switches to its own statutory formula.
- Set your service entry era. Choosing "before 1 March 1990" makes the calculator compute both premium formulas and quote the lower one, exactly as DFAS does.
- Enter the age at which retired pay started so the tool can project the paid-up month, the total premiums paid up to that point, and the break-even point for the survivor.
- Calculate, then stress-test. Run 50%, 75% and 100% of retired pay and compare each premium against your retirement budget and against the annuity your survivor would actually receive.
The SBP premium formula, the threshold formula and the 55% annuity
For spouse, former-spouse, and spouse-and-child elections the base rule in 10 U.S.C. 1452(a) is a flat percentage of the elected base amount:
Plain-text formula: monthlyPremium = coveredBaseAmount * 0.065; for pre-1-March-1990 entrants monthlyPremium = min(coveredBaseAmount * 0.065, 0.025 * min(coveredBaseAmount, thresholdAmount) + 0.10 * max(0, coveredBaseAmount - thresholdAmount)); survivorAnnuity = coveredBaseAmount * 0.55; insurableInterestReduction = grossRetiredPay * min(0.40, 0.10 + 0.05 * floor(yearsYounger / 5)).
Let B be the covered base amount and r the applicable rate.
Members who first became members of a uniformed service before 1 March 1990 may instead pay 2.5% of the first T dollars of the base amount plus 10% of the remainder, and DFAS charges whichever result is smaller:
With the 2026 threshold of $1,096 the two formulas cross at a base amount of about $2,348.57. Below that crossover the threshold formula is cheaper for anyone eligible for it; above it the flat 6.5% wins.
Survivor annuity. Since April 2008 the annuity is a flat 55% of the base amount at every survivor age:
Paid-up month. With a as the age at which retired pay began, the number of monthly reductions before coverage is paid up is:
Break-even. The number of annuity months needed to return everything the retiree paid in is the total premium divided by the monthly annuity:
Insurable interest. This category ignores the base amount entirely. Under 10 U.S.C. 1452(c) the reduction is 10% of gross retired pay G plus 5% for each full five years the designated beneficiary is younger by d years, capped at 40%, and under 10 U.S.C. 1451(b) the annuity is 55% of what is left:
Worked Example: a $2,000 base amount with spouse coverage
A member retires at age 46 with $3,000 of gross monthly retired pay, entered service after 1 March 1990, and elects a covered base amount of $2,000 for spouse only coverage.
- Monthly premium: $2,000 × 0.065 = $130.00
- Annual premium: $130.00 × 12 = $1,560.00
- Survivor annuity: $2,000 × 0.55 = $1,100.00 per month
- Paid-up reductions: max(360, (70 − 46) × 12) = max(360, 288) = 360 payments, so coverage is paid up at age 76
- Total premiums to that point: $130.00 × 360 = $46,800.00 in today's dollars
- Break-even: $46,800.00 ÷ $1,100.00 = 42.5 months, about 3 years and 7 months of annuity
These are the default inputs of the calculator below, so pressing Calculate Premium reproduces every figure. They illustrate the core shape of the tradeoff: three decades of premiums are recovered in roughly three and a half years of survivor payments, which is why SBP is usually compared to term life insurance on an after-tax basis rather than dismissed on premium cost alone.
Change one input and the picture shifts. Had the same member entered service in 1988 instead, the threshold formula would be tested: 0.025 × $1,096 + 0.10 × ($2,000 − $1,096) = $27.40 + $90.40 = $117.80, which beats $130.00, so the charge would be $117.80 and the 30-year total would fall to $42,408.00.
Coverage categories at a glance
SBP can be elected in several ways. This comparison table describes what the calculator does with each category and how the real DFAS charge is built.
| Coverage category | Basis used here | How the real premium works | Confidence of the estimate |
|---|---|---|---|
| Spouse only | 6.5% of covered base amount, or the threshold formula when it is lower | Exactly this rule under 10 U.S.C. 1452(a) | High — matches the statute |
| Former spouse | 6.5% of covered base amount, or the threshold formula when it is lower | Former-spouse coverage is priced the same as spouse coverage | High — matches the statute |
| Spouse and child | Spouse rate only, with the child add-on called out but not priced | Spouse premium plus a small actuarial charge keyed to the ages of the member, spouse and youngest child | Moderate — a floor, not a quote |
| Child only | 2.5% of covered base amount as a deliberate ceiling | Purely actuarial, keyed to the member's age and the youngest child's age; usually far cheaper | Low — upper bound only |
| Insurable interest | 10% of gross retired pay plus 5% per full five years of age difference, capped at 40% | Exactly this rule under 10 U.S.C. 1452(c), with the annuity at 55% of reduced retired pay | High — matches the statute |
Paid-up SBP, break-even math, and the premiums you stop paying
The single most under-modelled part of an SBP decision is that the premium is not permanent. Section 1452(j) of Title 10 stops the reduction after the later of the 360th month for which retired pay was reduced and the month the participant turns 70. The provision took effect on 1 October 2008, and DFAS applies it automatically — no application is required.
The consequence is that early retirees pay for exactly 30 years and reach paid-up status before 70 is even relevant only when they retire at 40 or later; a member who retires at 38 pays 384 reductions because age 70 arrives after the 360th payment. The calculator reports both the paid-up age and the number of reductions, which is the honest denominator for any "is SBP worth it" comparison.
Break-even is then simple division: total premiums paid divided by the monthly annuity gives the number of annuity months needed to recover the outlay. Because the annuity is 8.46 times the premium at the flat 6.5% rate, roughly 42 to 43 months of annuity recovers 360 months of premiums. Any survivor who outlives the retiree by more than about four years puts the household ahead in nominal terms, before considering that the premium was pre-tax and the coverage was inflation-indexed.
Premium rules that change the real bill
- Pre-tax deduction: the reduction comes out of retired pay before federal income tax, so a retiree in the 22% bracket gives up roughly 78 cents of after-tax income per dollar of premium.
- Paid-up coverage: premiums stop permanently at the later of 360 payments and age 70, and coverage continues for life.
- Threshold formula: members who first joined before 1 March 1990 get the lower of the two formulas. It only helps below the crossover base amount, which is about $2,348.57 at the 2026 threshold.
- DIC offset eliminated: the reduction of SBP by VA Dependency and Indemnity Compensation was phased down through 2021 and 2022 and removed entirely on 1 January 2023, first reflected in the 1 February 2023 payment.
- Premium suspensions: spouse premiums stop when there is no eligible beneficiary, for example on the spouse's death or a divorce without a former-spouse election, and resume under DFAS rules on remarriage.
- Cost-of-living adjustments: both the base amount and the annuity are indexed, so the premium in dollars grows over time even though the rate does not. Every figure on this page is expressed in today's dollars.
Limitations and Assumptions Behind These Estimates
This tool is deliberately simple, which means it makes assumptions you should check before relying on a number.
- No COLA projection: premiums, base amounts and annuities are all held in today's dollars. Real premiums and real annuities both rise with the retired-pay COLA, and no discount rate is applied to the break-even figure.
- Child-only pricing is a ceiling: the actual charge is actuarial and depends on the ages of the member and the youngest child. The 2.5% figure used here is an intentionally conservative upper bound, not a quote.
- Spouse-and-child add-on is not priced: the calculator reports the spouse premium and flags that DFAS adds a small child charge on top of it.
- Reserve Component SBP is not modelled: RC-SBP options that cover the gap between the 20-year letter and age 60 add cost factors this planning model does not include.
- Rounding: results are rounded to cents for display; payroll rounding conventions may differ by a few cents.
- Eligibility is assumed: actual payable benefits depend on beneficiary eligibility, election category, court orders, remarriage rules and other program requirements.
- Not financial or legal advice: use for planning only, and confirm with DFAS or a qualified retirement counselor before making an irrevocable election.
Practical tips for choosing a base amount
- Start with the income gap: estimate the monthly income your survivor would be short after Social Security, VA benefits and savings, then divide that gap by 0.55 to get the base amount that closes it. Buying more than that is buying income the household plan does not need.
- Check the floor and the ceiling: the base cannot go below $300 or above your gross retired pay, and anything below full coverage needs the spouse's notarized concurrence.
- Compare after tax on both sides: the premium is pre-tax to the retiree and the annuity is taxable to the survivor, so a term-life comparison built on gross premiums is misleading.
- Count the end date: 360 payments is a finite obligation. Comparing a 30-year premium stream against a level-term policy that expires is a fairer comparison than treating SBP as permanent.
- Re-run the numbers at every life event: a divorce, a remarriage, a new child, or a disability rating can all change which category and which base amount is right.
Sources: DoD FMR, U.S. Code and DFAS guidance
Every rate, floor, cap and effective date on this page was checked against the following primary sources rather than secondary summaries:
- 10 U.S.C. 1452 — the 6.5% spouse reduction, the 2.5%-plus-10% threshold formula for pre-1-March-1990 entrants, the 10%/5%/40% insurable-interest reduction in subsection (c), and the 360-payments-and-age-70 paid-up rule in subsection (j).
- 10 U.S.C. 1451 — the 55% annuity on the base amount and the April 2008 end of the age-62 tier.
- 10 U.S.C. 1447(6) — the definition of base amount, the $300 statutory floor, and the spouse-concurrence requirement.
- DoD 7000.14-R Financial Management Regulation, Volume 7B — SBP elections, beneficiaries and premium computation (Chapters 43 to 45).
- DFAS — SBP costs — the 6.5% of retired pay ceiling and reduced-coverage worked examples.
- DFAS — SBP-DIC news — the 2021 and 2022 phase-down and the full elimination of the offset on 1 January 2023.
- DoD Military Compensation — Paid-up SBP — 360 months of premiums plus age 70.
The 2026 threshold amount of $1,096, effective 1 January 2026 and up from $1,056, comes from the annual DoD retired-pay COLA notice that publishes the adjustment to the 2.5% factor.
Planning the same retirement milestone? The military leave sell-back and terminal leave calculator covers the leave decision that usually lands on the same checklist as the SBP election.
Warning: Actual SBP elections, reductions, dependency status, taxes, and annuity payments depend on official DFAS/military records.
Source/version metadata: 10 U.S.C. 1447, 1451 and 1452; DoD FMR Volume 7B Chapters 43-45; DFAS SBP cost and SBP-DIC guidance. Threshold amount $1,096 effective 1 January 2026. Model last reviewed August 2026.
Survivor Benefit Plan premiums: frequently asked questions
How much does the Survivor Benefit Plan cost per month?
For most retirees, spouse coverage costs 6.5% of the elected covered base amount per month, deducted from retired pay before taxes. For a $2,000 base amount that is $130 per month, in exchange for an estimated survivor annuity of 55% of the base ($1,100 per month). Members who first entered a uniformed service before 1 March 1990 pay the lower of that amount or 2.5% of the threshold amount plus 10% of the base above it; the threshold amount is $1,096 for 2026.
Is the SBP survivor annuity always 55%?
For current elections, yes: since April 2008 the SBP annuity is a flat 55% of the elected base amount regardless of the survivor's age, and both the base amount and the annuity rise with cost-of-living adjustments. The old two-tier rule that cut the annuity to 35% at age 62 no longer applies.
Do SBP premiums ever stop?
Yes. Under 10 U.S.C. 1452(j) the reduction in retired pay stops after the later of the 360th month for which retired pay was reduced and the month you turn 70, so coverage becomes paid up and continues for life at no further cost. Premiums are also suspended while there is no eligible beneficiary, for example after a spouse's death, and spouse premiums stop if the marriage ends without a former-spouse election.
Does DIC still reduce the SBP annuity?
No. The SBP-DIC offset was phased out over 2021 and 2022 and eliminated in full on 1 January 2023, so an eligible surviving spouse now receives both the whole SBP annuity and whole VA Dependency and Indemnity Compensation. Older planning material that subtracts DIC from SBP is out of date.
What does insurable interest coverage cost?
Insurable interest coverage is priced off full gross retired pay rather than an elected base amount. The reduction is 10% of retired pay plus 5% for each full five years the beneficiary is younger than you, capped at 40% of retired pay, and the annuity is 55% of what is left after that reduction. This calculator models that election directly when you supply your gross retired pay and the age difference.
What base amount should I elect for SBP?
Start from the monthly income your survivor would actually need, then work backward: the annuity is 55% of the base, so a survivor income target of $1,650 per month implies a base of $3,000. The base can be anywhere from $300 to your full gross retired pay, but electing less than full coverage requires the spouse's notarized concurrence.
Coverage Balance: the SBP base-amount game
Each round hands you a retirement scenario and a survivor income gap. Slide the covered base amount along the beam — the 6.5% premium stacks on the cost pan, the 55% annuity stacks on the protection pan, and the timeline above marks retirement, the paid-up point, the retiree's death and the break-even month. Score by electing the base amount whose 55% annuity closes the survivor's gap without buying coverage the household plan does not need.
Focus the beam and use the arrow keys, or drag the handle, to set a covered base amount. Press Space or Enter to lock it in.
- ↑→ raise the base amount by $25
- ↓← lower the base amount by $25
- Page UpPage Down move by $250
- HomeEnd jump to the $300 floor or full retired pay
- SpaceEnter lock the election, then advance
- Pointer or touch: drag the handle along the slider
The game uses the same arithmetic as the calculator above: a 6.5% premium on the covered base amount (or the pre-1990 threshold formula where the scenario says so), a 55% survivor annuity, and premiums that stop at the later of 360 payments and age 70. It is a planning drill, not a DFAS quote.