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401(k) Loan Calculator

401(k) Loan Impact

Calculate 401(k) loan payments and retirement impact

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Formula

Monthly = L[r(1+r)^n]/[(1+r)^n - 1]. Opportunity Cost = Loan x (1 + Market Return)^Years - Loan.

Frequently Asked Questions

How much can I borrow from my 401(k)?
You can borrow up to 50% of your vested balance or $50,000, whichever is less. Some plans have a minimum loan amount of $1,000. Not all 401(k) plans allow loans.
Do I pay interest to myself?
Yes, the interest you pay on a 401(k) loan goes back into your own account. However, you pay with after-tax dollars, and the interest will be taxed again when withdrawn in retirement, creating double taxation.
What happens if I leave my job?
If you leave your job or are terminated, you typically must repay the outstanding loan balance within 60-90 days. If you cannot repay, the remaining balance is treated as a distribution, subject to income tax and a 10% early withdrawal penalty if you're under 59.5.

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