Military COLA Calculator

Frequently Asked Questions

What is COLA?

Cost-of-Living Allowance offsets non-housing costs (food, transport, services) where they exceed CONUS average. CONUS COLA applies in expensive U.S. locations; OCONUS COLA applies overseas. Both are non-taxable supplements.

How is OCONUS COLA calculated?

OCONUS COLA = COLA index × spendable income (a percentage of pay) × dependents factor. The index is set per location based on a market-basket survey and exchange rate, and indexes can change every two weeks.

How big is CONUS COLA?

CONUS COLA only applies in locations where non-housing costs are 8%+ above the U.S. average (e.g. parts of CA, NY, AK, HI). Payments are typically modest - $30–$300/month - and vary by grade, YOS, and dependents.

Where to verify final amounts?

DTMO publishes COLA tables and an official calculator. The amount on your LES is authoritative; this tool is an educational estimate that may lag policy changes.

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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 This Calculator Works

Cost-of-Living Allowance (COLA) is paid to service members assigned to duty stations where non-housing living costs exceed the CONUS average. There are two related programs: CONUS COLA covers about 20 high-cost stateside locations (e.g. San Francisco Bay Area, Honolulu, NYC metro, parts of DC's suburbs, Boston, San Diego), and 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 (which covers housing) and BAS (which covers food at home). This calculator estimates monthly and daily COLA by combining the published locality index with a "spendable income" base that depends on pay grade, years of service, and whether you have dependents. Estimates only - verify against the DTMO COLA calculator and your LES.

Formula / Method

Monthly COLA ≈ spendable_income × (index − 100) ÷ 100, then scaled by a dependent factor (single members receive about 85% of the with-dependent figure to reflect smaller household consumption). Spendable income is a DoD-published table of estimated take-home pay available for non-housing purchases after taxes, savings, and gifts - it grows with grade and years of service. The COLA index itself is set so that 100 means "same cost as CONUS average"; an index of 120 means the local non-housing market basket costs 20% more than CONUS. Daily COLA equals monthly ÷ 30 and is used to prorate COLA for partial-month travel, TDY, or leave. OCONUS COLA further multiplies by the current foreign exchange spot rate, which is why members' OCONUS COLA can rise or fall mid-month with no change in orders.

Worked Example

An E-5 with 6 years of service and dependents stationed where the COLA index is 108: spendable income from the table is about $2,050/month. COLA = $2,050 × (108 − 100) ÷ 100 × 1.0 = $164/month tax-free, or about $5.47/day. That works out to roughly $1,968/year of additional, non-taxable income - equivalent to about $2,460 of pre-tax civilian salary in the 22% federal bracket. If the same member moved to an index-120 station (e.g. Honolulu), COLA would jump to $2,050 × 0.20 = $410/month tax-free.

Common Mistakes

Confusing COLA with BAH - COLA covers non-housing cost differences (food, transportation, services); BAH separately covers rent.

Assuming COLA is taxable like base pay - both CONUS and OCONUS COLA are exempt from federal income tax (and most state taxes).

Treating COLA as guaranteed; if a locality's index drops below 109 for CONUS COLA, payments cease until the index returns above the threshold.

Forgetting that OCONUS COLA recalibrates on the 1st and 16th of every month - budget for the volatility, especially if living off-installation.

Counting COLA as "raise" for promotion math - COLA disappears when you PCS to a non-COLA station, so do not anchor your budget to it long-term.

Tips & FAQ

Q: Do I still get COLA on TDY? A: 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. Q: Does COLA count toward retirement? A: No - only base pay enters the High-3 retirement calculation. Q: What if my locality index drops below 109? A: CONUS COLA pays zero. The threshold is 109 (not 100) because the program is statutorily targeted at the 8%+ higher-cost localities. Q: Can I appeal a low COLA index? A: Local cost surveys are conducted by DTMO using shopping baskets at on-base exchanges and off-base stores; commands can request a survey but individuals cannot. Always verify with the DTMO Outside the Continental United States Cost-of-Living Allowance calculator and your installation finance office before relying on these figures for budgeting or PCS decisions.

Frequently Asked Questions

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