Military COLA Calculator

Frequently Asked Questions

Do I still get COLA on TDY?

You earn COLA at your permanent station rate during TDY of 30 days or less. Longer TDY may shift you to the TDY location's COLA rate.

Does COLA count toward retirement?

No - only base pay enters the High-3 retirement calculation. COLA is an allowance and is excluded from the retirement formula.

What if my locality index drops below 109?

CONUS COLA pays zero. The threshold is 109, not 100, because the program is targeted at the 8%+ higher-cost localities.

Can I appeal a low COLA index?

Individuals cannot directly appeal, but local commands can request a DTMO survey if conditions are significantly underrepresented in the current index.

Is OCONUS COLA the same as OCONUS BAH?

No - OCONUS BAH is called OHA (Overseas Housing Allowance) and covers actual rent up to a published ceiling. OCONUS COLA covers non-housing living costs separately.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How It Works

Cost-of-Living Allowance (COLA) is paid to service members assigned to duty stations where non-housing living costs exceed the CONUS average. CONUS COLA covers roughly 20 high-cost stateside locations such as the San Francisco Bay Area, Honolulu, NYC metro, parts of DC suburbs, Boston, and San Diego. OCONUS COLA covers nearly every overseas station and is recalibrated twice a month against exchange rates and local goods baskets.

Both are tax-free supplements separate from BAH (housing) and BAS (food). This calculator estimates monthly and daily COLA by combining the published locality index with a DoD spendable-income base that depends on pay grade, years of service, and dependency status.

Eligibility

COLA is paid automatically to members stationed at qualifying locations. Key criteria include:

CONUS COLA: duty station locality index must be at least 109 (8% above CONUS average) for payment to begin.

OCONUS COLA: paid at virtually all overseas stations; amount varies by country and exchange rate.

Members with dependents receive about 15% more COLA than without-dependent members to reflect larger household consumption.

Members on TDY of 30 days or less earn COLA at their permanent station rate; longer TDY may shift to the TDY location's rate.

COLA does not count toward the High-3 retirement base and disappears at PCS to a non-COLA station.

Tips

Do not anchor your long-term budget to COLA - it disappears when you PCS to a non-qualifying station, and you should plan for living without it.

OCONUS COLA recalibrates on the 1st and 16th of every month. Budget for volatility, especially if living off-installation in a country with an unstable currency.

CONUS COLA pays zero if the index drops below 109, even if you did not move. Check your LES quarterly to see if COLA status has changed.

Both CONUS and OCONUS COLA are non-taxable - factor this in when comparing military versus civilian compensation packages.

Local cost surveys are conducted by DTMO; commands can request a new survey if they believe costs are significantly underrepresented.

FAQ