401(k) Loan Calculator
Borrowing from your 401(k) is quick and avoids credit checks, but it costs more than the interest you pay back — the money you borrowed stops growing. This shows your repayment and what the loan really costs in missed growth.
Limits: you can borrow the lesser of $50,000 or 50% of your vested balance. Repayment: typically 5 years (longer for a primary-home purchase), via payroll deduction, at a rate usually prime + 1%. Real cost: you repay with after-tax dollars AND the borrowed amount stops earning market returns. If you leave your job, the balance may come due in 60-90 days — a trap if you're mid-loan. This models the opportunity cost so you can weigh it against a personal loan.
FAQ
How much can I borrow from my 401(k)?
The lesser of $50,000 or 50% of your vested balance, in most plans. Your plan document is the authority.
Is a 401(k) loan cheaper than a personal loan?
The interest is lower and you pay it to yourself, and there's no credit check. But you lose market growth on the borrowed money and repay with after-tax dollars — the effective cost is often higher than the headline rate.
What happens if I leave my job with a 401(k) loan?
The outstanding balance usually becomes due within 60-90 days (or when your tax return is due). If you can't repay, it's treated as a distribution — you owe income tax plus a 10% penalty if under 59½.
Figures are editable example defaults for modeling, not quotes or advice. Financial, tax, and medical outcomes vary with your situation — verify with a qualified professional (CFP, CPA, tax advisor, or veterinarian).