SBP Premium Calculator (Survivor Benefit Plan)
Introduction: what SBP costs now and pays your survivor later
The Survivor Benefit Plan (SBP) is a Department of Defense program that lets a retiring service member (or certain retirees) provide an ongoing, inflation-adjusted survivor benefit to eligible beneficiaries after the retiree’s death. In exchange for that protection, a premium is deducted from the retiree’s pay — before taxes, which lowers the out-of-pocket cost. This page estimates:
- Estimated monthly SBP premium based on the elected covered base amount and a simplified rate for the coverage type selected.
- Estimated survivor annuity, calculated as 55% of the elected base amount (the standard SBP annuity percentage for current elections).
Use the results as a planning estimate—SBP rules can be nuanced and individual circumstances (Reserve/Guard, disability ratings, former spouse elections, etc.) can change real-world outcomes.
Key terms (so the input makes sense)
- Covered base amount (B): the portion of your retired pay you choose to “insure” under SBP. It can be as low as the statutory minimum of $300 and up to your full gross retired pay. The base amount is not automatically your entire pension—it's the amount you elect for SBP coverage, and electing less than full coverage requires the spouse's notarized concurrence.
- Coverage type: who the beneficiary protection is intended for (e.g., spouse, spouse & child, child-only). Different elections have different premium structures.
- Premium: the monthly amount deducted from retired pay for SBP coverage, taken out before federal income tax.
- Survivor annuity: the monthly amount paid to the eligible beneficiary after the retiree’s death, tied to the elected base amount and increased by COLA adjustments.
Formulas used for the premium and annuity estimates
This calculator uses a simplified “rate × base amount” approach for premium estimation and the standard 55% factor for the annuity estimate.
Plain-text formula: monthlyPremium = selectedBaseAmount * 0.065 for the simplified spouse-only base premium where applicable. Child-only, former-spouse, and insurable-interest outputs are simplified or unsupported unless official formulas/data are implemented.
Monthly premium
Let:
- B = elected covered base amount (monthly dollars)
- r = premium rate for the selected coverage type (as a decimal)
Survivor annuity (estimate)
Annual premium is computed as 12 × monthly premium.
How to interpret the results
- Monthly premium helps you understand the immediate monthly “cost” of the protection. It is commonly withheld from pay automatically.
- Annual premium is useful for budgeting and comparing SBP to other insurance or retirement-income strategies.
- Projected survivor annuity is the gross estimated monthly benefit tied to the base amount. Actual payable amounts can be affected by eligibility, timing, program rules, and other federal benefit interactions.
Worked example: a $2,000 base amount with spouse coverage
Suppose a retiree elects a covered base amount of $2,000 and chooses Spouse Only coverage with a simplified premium rate of 6.5% (0.065).
- Monthly premium estimate: $2,000 × 0.065 = $130.00
- Annual premium estimate: $130.00 × 12 = $1,560.00
- Projected survivor annuity: $2,000 × 0.55 = $1,100.00 per month
These are exactly the default inputs of the calculator below, so pressing Calculate Premium reproduces every number in this example. It illustrates the core tradeoff: a smaller ongoing premium in retirement in exchange for a substantial survivor income stream — here, a full year of premiums buys about 1.4 months of annuity.
Coverage types at a glance (simplified for this calculator)
SBP can be elected in multiple ways. This comparison table is an interpretation guide for what the calculator is doing—not an official DFAS rate table.
| Coverage type | Rate used in this calculator | How the real premium works | Best for estimating |
|---|---|---|---|
| Spouse Only | 6.5% | 6.5% of the base amount for most retirees; pre-March-1990 entrants pay the lesser of that or an older threshold formula | Quick planning estimate for spouse coverage |
| Spouse & Child | 6.5% | The spouse rate plus a small age-based actuarial add-on for the child portion (usually well under 0.5%) | High-level budgeting (not a precise DFAS quote) |
| Child Only | 2.5% | An actuarial rate based on the retiree's and youngest child's ages; often far cheaper than spouse coverage, so 2.5% is a deliberately conservative ceiling | Rough upper-bound estimate when only child coverage is selected |
Premium rules that change the real bill
- Pre-tax deduction: SBP premiums come out of retired pay before federal income tax, so the effective cost is lower than the sticker premium — roughly 22% lower for a retiree in the 22% bracket.
- Paid-up SBP: premiums stop for good once you have made 360 monthly payments (30 years) and are at least age 70; coverage then continues for life at no further cost.
- Older members' alternative formula: members who entered service before 1 March 1990 pay the lesser of 6.5% of the base amount or 2.5% of an annually adjusted threshold amount plus 10% of the remaining base. It only helps at smaller base amounts.
- DIC offset eliminated: since January 2023 the SBP annuity is no longer reduced by VA Dependency and Indemnity Compensation. Surviving spouses receive both in full.
- Premium suspensions: spouse premiums stop when there is no eligible beneficiary (death or divorce without a former-spouse election) and resume on remarriage after a year, or on request, under DFAS rules.
Assumptions & limitations (important)
This tool is designed to be easy to use, which means it necessarily simplifies some SBP details. Treat results as an estimate and verify elections and costs with official sources.
- Rates are simplified: Actual SBP premiums can vary by election type and circumstances. This calculator uses the displayed flat rates for estimation only.
- Base amount meaning: The input is the elected SBP base amount, not necessarily your full gross retired pay. If you enter gross retired pay without intending full coverage, your estimate will be overstated.
- Minimum/maximum rules: The calculator enforces the statutory minimum of $300 as a floor. The maximum is your full gross retired pay, which the tool can only check if you enter it.
- Rounding: This calculator rounds to cents for display. Payroll deductions may follow specific rounding conventions.
- COLA and future changes: SBP base amounts and annuities are inflation-adjusted over time, but this calculator shows today’s dollar estimate based solely on the base amount.
- Eligibility & beneficiary rules: Actual payable benefits depend on beneficiary eligibility, election category (including former spouse elections), remarriage rules, and other program requirements.
- Reserve Component SBP not modeled: RC-SBP for Guard and Reserve members adds cost factors for pre-retirement-age coverage that this planning model does not include.
- Not financial/legal advice: Use for planning only; confirm with DFAS/DoD publications or a qualified counselor.
Practical tips for choosing a base amount
- Start with the income gap: Estimate how much monthly income your survivor would need to maintain core expenses, then divide by 0.55 to get the base amount that produces it.
- Compare premium vs. benefit: The premium is ongoing; the annuity is contingent. Consider other survivor income sources (VA, Social Security, savings, insurance).
- Stress-test: Try a few base amounts (e.g., 50%, 75%, 100% of retired pay) and compare the premium to your retirement budget.
- Remember the tax angle: because premiums are pre-tax and the annuity is taxable to the survivor, comparing SBP against term life insurance requires after-tax numbers on both sides.
References (official guidance)
- DFAS SBP cost guidance
- DoD Survivor Benefit Plan overview
- Service retirement briefings and SBP election materials
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: DFAS SBP cost guidance and DoD SBP election materials, simplified planning model last reviewed July 2026.
How to use this SBP premium calculator
- Enter the covered base amount in monthly dollars — the portion of retired pay you elect to insure, from the $300 floor up to your full gross retired pay, not automatically your whole pension.
- Optionally enter your gross monthly retired pay so the tool can flag a base amount that exceeds it.
- Choose the coverage type. Spouse and spouse-and-child use a simplified 6.5% rate, child-only uses 2.5%, and former-spouse or insurable-interest elections are flagged as unsupported rather than guessed.
- Calculate, then stress-test a few base amounts (for example 50%, 75%, and 100% of retired pay) and compare each premium against your retirement budget and the projected annuity.
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 entered service before 1 March 1990 pay the lesser of that amount or an older two-part formula built on a yearly threshold amount.
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. Coverage becomes paid-up once you have made 360 monthly payments (30 years of premiums) and are at least 70 years old; premiums stop and coverage continues for life. 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 fully eliminated in January 2023, so an eligible surviving spouse can now receive both the full SBP annuity and full VA Dependency and Indemnity Compensation at the same time. Older planning material that subtracts DIC from SBP is out of date.
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.
Arcade Mini-Game: Survivor Benefit Calibration Run
Use this quick arcade run to lock in SBP-planning instincts: catch the facts that make an election estimate honest and dodge the assumptions that surprise families later.
Start the game, then use your pointer or arrow keys to catch useful inputs and avoid bad assumptions.