1. What is Army Continuation Pay?

Definition: Continuation Pay is a monetary incentive offered to eligible Army personnel who commit to additional years of service.

Purpose: It helps retain experienced service members by providing financial compensation at critical career points.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( CP \) — Continuation Pay amount ($)
• \( M \) — Multiplier (based on years of service, unitless)
• \( ABP \) — Annual base pay ($)

Explanation: The multiplier (determined by years of service) is multiplied by the service member's annual base pay.

3. Importance of Continuation Pay Calculation

Details: Accurate calculation helps service members make informed decisions about reenlistment and financial planning.

4. Using the Calculator

Tips: Enter the appropriate multiplier (default 2.5) and your annual base pay. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: How is the multiplier determined?
A: The multiplier varies by years of service and military occupational specialty (MOS). Typical range is 2.5-13.

Q2: When is continuation pay offered?
A: Usually between 8-12 years of service, but exact timing depends on career field and needs of the Army.

Q3: Is continuation pay taxable?
A: Yes, continuation pay is considered taxable income.

Q4: How often is continuation pay received?
A: Typically paid as a lump sum after signing the service agreement.

Q5: Where can I find my exact multiplier?
A: Consult your career counselor or refer to the latest Army MILPER message on continuation pay.