Use this calculator to derive a final average salary input from an ordered pay history. Defined-benefit plans often combine such an average with credited service and an accrual rate, although the precise averaging definition is plan-specific.^[1]

Select the requested number of most recent annual salary observations, add them, and divide by the number selected. The default window is three years and the salary history is interpreted oldest first.^[2]

This tool calculates only an arithmetic average; it does not calculate benefit accrual, pension liability, high-average compensation, indexed pay, or the highest nonconsecutive years. Using final years can differ materially from a plan that selects highest years.

Feed the result into a plan-specific benefit formula when final average pay is required. Use the entry-age-normal liability tool only for its stated simplified lump-sum allocation assumptions.

• Normal Retirement Benefit Calculator

  Calculate the annual pension benefit from final average salary, an accrual rate per service year, and completed years of service.

• Frequency Severity Expected Loss Calculator

  Multiply expected claim frequency by average claim severity to obtain the expected loss.

• Projected Salary Accrual Present Value Calculator

  Project a salary-based benefit accrual to its payment date and discount that single future amount to present value.