401k Loan Calculator
See how much you can borrow from your 401k, what the monthly payment would be, and how the loan could affect your retirement savings.
What we noticed
Year by year
How this calculator works
A 401k loan lets you borrow from your own savings and repay yourself with interest, usually through payroll. The interest goes back into your account, so the cost is mostly the growth the borrowed money misses while it is out.
We calculate your monthly payment, the total interest, and compare your account at the end with and without the loan. The most you can borrow is the smaller of $50,000 or half your vested balance, or up to $10,000 if half your balance is less than that.
Your plan may have its own limits and rate, so check with your plan administrator.
Usual 401k loan rules
| Most you can borrow | The smaller of $50,000 or 50% of your vested balance (up to $10,000 if half is less) |
|---|---|
| Repayment time | Up to 5 years, or longer for buying your main home |
| Payments | Regular payments, at least every quarter, usually through payroll |
| Interest rate | Set by your plan, often prime plus 1 percentage point |
| If you leave your job | Many plans require repayment soon after. An unpaid balance is generally treated as a withdrawal. A plan offset can be rolled over by your tax-return due date, including extensions |
Frequently asked questions
How much can I borrow from my 401k?
Generally the smaller of $50,000 or half of your vested balance. If half your balance is under $10,000, you may be able to borrow up to $10,000. Your plan decides whether loans are offered.
Do I pay interest on a 401k loan?
Yes, but you pay it to your own account, not a bank. That does not make it free, because the payments come from your take-home pay.
What happens if I leave my job with a loan?
Many plans require you to repay soon after you leave. A balance you cannot repay is generally treated as a withdrawal, with income tax and often a 10% penalty if you are under 59½. If your plan offsets the loan against your account, you can roll that amount over until your tax-return due date, including extensions.
Is a 401k loan a good idea?
It can be cheaper than other borrowing, but it can slow your retirement savings and carries risk if you lose your job. Compare it with other options first.