SBP Cost & Break-Even Calculator
The Survivor Benefit Plan (SBP) is the choice of whether to pay a monthly premium out of retired pay so your spouse gets a lifetime annuity. This calculator covers active duty spouse coverage: monthly cost, the annuity, and how long your spouse would need to collect to get back what you paid in.
How it works
- Premium = 6.5% of the base amount; the annuity = 55% of the base amount (DFAS SBP cost, DFAS advantages). Example from DFAS: a $1,000 base costs $65/month.
- Premiums stop ("paid-up") once you have paid 360 months and reached age 70 (10 U.S.C. 1436a; DoD FMR Vol 7B Ch 45).
- Break-even = total premiums ÷ monthly annuity: the months your spouse must collect to recover the premiums. This is in today's dollars: it ignores COLA (which raises both), investment returns, and the tax benefit (premiums come out of retired pay before tax).
- The decision is made before retirement; declining or choosing less than full coverage generally needs your spouse's notarized consent on DD Form 2656 (DFAS SBP). Reserve Component SBP (RCSBP) has different costs and options and isn't modeled here (DFAS RCSBP).
- Remarriage: if your spouse remarries before age 55, payments stop (they can resume if that marriage ends); remarriage at 55 or later doesn't affect them (DoD SBP spouse coverage). The break-even assumes payments continue.
- For a full insurance-vs-SBP comparison, the DoD Office of the Actuary publishes tools.
Rates used (as of 2026-10-25)
| Rate | Value | Status |
|---|---|---|
| Premium (spouse coverage, active duty) | 6.5% of base | DFAS cost page (read via search extract): rate pending official confirmation |
| Annuity | 55% of base | DFAS advantages page |
| Paid-up | 360 payments and age 70 | 10 U.S.C. 1436a / FMR 7B Ch 45 |
| Minimum base amount | $300/month (lower only if full retired pay is under $300) | Verified 2026-10-25, DoD FMR 7B Ch 42 §4.1, DoD |
Not official. Not financial, tax or legal advice. DuffelMath is an independent site and is not affiliated with or endorsed by the Department of Defense, DFAS, the VA or any military service. Estimates only; your finance office, transportation office and DFAS decide what you are actually paid. Rates as of 2026-10-25; check the linked official sources.