How much is military compensation really worth?

Military compensation includes base pay plus BAH (housing), BAS (food), tax advantages, free healthcare (Tricare), and retirement/pension. For an E-5 with dependents, total compensation is often equivalent to $70,000-$90,000 civilian salary.

Should I factor in Tricare when comparing salaries?

Absolutely. Tricare Prime costs $0 for active duty families. Comparable civilian health insurance costs $500-$1,200/month for family coverage ($6,000-$14,400 annually).

How do I compare military retirement to civilian 401k?

Military pension (20-year retirement) provides 40-50% of base pay for life, plus healthcare. This is worth $1-2 million in retirement benefits compared to typical civilian 401k employer matches of 3-6%.

Free Tool

Career Comparison Calculator

Compare job offers by analyzing total compensation, taxes, and cost of living differences.

Total Compensation Comparison

This calculator compares total compensation adjusted for cost of living and taxes. Uses simplified tax calculations (~15% federal effective rate) and COL index data from multiple sources. Actual results may vary significantly.

COL Data

Multiple Sources

Tax Model

Simplified

Confidence

Fair

Current Job

City/Location

COL Index: 100

Base Annual Salary

Annual Bonus

Retirement Match (%)

Value: $3,000

State Income Tax (%)

TX/FL/WA: 0%, CA: ~9%, NY: ~7%

New Offer

City/Location

COL Index: 86.9 (-13% vs national avg)

Base Annual Salary

Annual Bonus

Retirement Match (%)

Value: $4,200

State Income Tax (%)

TX/FL/WA: 0%, CA: ~9%, NY: ~7%

Compensation Comparison

Current Job

Total Compensation:$63,000

After Taxes:$50,400

New Offer

Total Compensation:$79,200

After Taxes:$67,320

Better Purchasing Power

+$27,068

Annual difference after taxes and cost of living adjustment (+53.7%)

How We Calculate This:

Current after-tax income:$50,400

New offer adjusted to your COL:$77,468

Net purchasing power change:+$27,068

Important Disclaimer

This calculator uses simplified tax estimates and generalized cost of living data. Actual financial outcomes vary significantly based on personal circumstances, deductions, housing costs, lifestyle choices, and local variations. This is a planning tool only. Consult with a financial advisor before making major career decisions.

Understanding Total Compensation

Base salary is just the starting point - bonuses and retirement matching add significant value
State taxes vary from 0% (TX, FL, WA) to 9%+ (CA) - can be thousands annually
Cost of living dramatically impacts purchasing power - same salary goes further in low-COL areas

Career Decision Factors

Consider non-financial factors: career growth, work-life balance, commute
Research actual housing costs in new location (rentals or purchase prices)
Factor in healthcare costs, childcare, and other family-specific expenses
Military transition: Consider GI Bill, SkillBridge, and veteran hiring programs

Career Transition Resources

Hiring Our Heroes - Military Transition Program →SkillBridge - Pre-Separation Training Program →Cost of Living Calculator (NerdWallet) →

Cost of living data from multiple public sources. Tax calculations are simplified estimates. Consult a financial advisor for personalized career guidance.