Military PCS Relocation Financial Impact Calculator

Understanding Military PCS Moves & Financial Impact

The PCS Financial Impact Formula

Understanding total PCS cost requires analyzing multiple components:

Key components:

• BAH (Basic Allowance for Housing): Monthly stipend varies by duty station, rank, and dependent status
• DLA (Dislocation Allowance): One-time payment to offset relocation costs ($500-$2,000)
• HHG (Household Goods): Military covers shipment up to weight allowance
• TLE (Temporary Lodging Expense): Military reimburses 75% of temporary housing costs
• Spouse Employment Impact: Job loss or change often costs months of income

Worked Example: Active Duty Family PCS

Scenario: MSgt Johnson, E-7, stationed at Fort Bragg, NC receives PCS orders to Joint Base San Antonio, TX. Family of 4 (spouse + 2 children).

BAH Comparison:

• Fort Bragg BAH with Dependents: $1,835/month = $22,020/year
• JBSA BAH with Dependents: $2,310/month = $27,720/year
• Annual BAH Increase: $5,700 (positive change)

One-Time PCS Costs:

• HHG Shipment (Military Paid): Covered, no out-of-pocket
• Excess Weight (200 lbs over): $0
• Personal Vehicle Transport: $1,200
• DLA with Dependents: +$2,000 (military reimbursement)
• Temporary Lodging: 30 days × $150 = $4,500; Military reimburses 75% = $3,375; Out-of-pocket: $1,125
• School Enrollment: $400
• Driver License & Registration: $150
• House Hunting Trip: $800
• Spouse Income Loss (2 months job transition): $6,000
• Total One-Time Out-of-Pocket: $10,275
• Less DLA: $10,275 − $2,000 = $8,275 net cost

Total Year 1 Impact:

• Annual BAH Increase: +$5,700 (positive)
• Net One-Time Costs: −$8,275 (negative)
• Year 1 Net Impact: −$2,575 (slight cost)
• Year 2+ Impact: +$5,700/year (positive from BAH increase alone)

Key Concepts

BAH (Basic Allowance for Housing)

BAH varies significantly by duty station and is designed to cover typical local housing costs. Higher-cost duty stations (Hawaii, DC, NYC area bases) have much higher BAH rates.

DLA (Dislocation Allowance)

• No Dependents: $500 (one-time)
• With Dependents: $2,000 (one-time)
• Intended to offset relocation costs but rarely covers all expenses
• Paid to service member's account (may take 2-4 weeks)

TLE (Temporary Lodging Expense)

• Military reimburses 75% of documented lodging costs
• Typical limit: $150-200/day depending on area
• Usually allowed for 30-60 days during transition
• Requires receipts for reimbursement

Common PCS Misconceptions

• Military pays for everything: Military covers HHG shipment only; other costs are service member responsibility
• BAH increase always positive: Sometimes BAH decreases with certain reassignments
• DLA covers all relocation costs: $2,000 rarely sufficient for family of 4 relocation
• Spouse employment not a factor: Job changes can cost $3,000-$10,000+ in lost income and transition costs
• No tax implications: Some PCS costs are tax-free (DLA, HHG), others are not

Important Limitations & Considerations

• BAH Rates Change Annually: This calculator uses current rates; actual rates change January 1 each year
• Service Branch Variations: Army, Navy, Marines, Air Force have slight variations in allowances and policies
• Rank-Dependent: BAH rates vary significantly by rank; E-5 and O-4 have different allowances
• OCONUS Moves: Overseas (OCONUS) moves have different cost structures (airfare, passport, etc.)
• House Hunting Trip: Some commands approve house hunting trips; not all do
• Spouse Employment: Income loss estimates vary widely by field and job market at new location
• Rental Market Timing: Actual housing costs may differ from BAH rates depending on market conditions
• School System Costs: Private school transitions may exceed $500-1,000 stated above