401k Loan Calculator
A loan from a workplace retirement plan is repaid to your own account, usually through payroll deductions. This shows how much a plan may let you borrow under the usual limits, and the payment on that loan. The same math applies to other workplace plans, including the Thrift Savings Plan used by federal employees.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Plans commonly limit a loan to a share of your vested balance, and to a fixed cap. The most you may borrow is the smaller of those two numbers.
The payment uses the standard loan formula over the repayment term. Repayments go back into your own account, but the money you borrow is not invested in the plan while it is out, so its growth can be lower. Check your plan's rules for fees and repayment timing.
Worked example
With a vested balance of $80,000.00, the most you may borrow is $40,000.00. Over 5 years at 5%, the payment is $754.85 a month, with $5,290.96 in total interest.
Questions
What if I leave the job with a loan?
Many plans then ask for the balance back soon, or treat it as a withdrawal. Ask your plan administrator what happens.
Are plan loan limits the same everywhere?
No. Each plan sets its own rules within the limits the law allows. Change the share and the cap to match your plan.
Does the interest I pay count as a cost?
It is paid back to your own account, but the amount borrowed is not invested while you repay it, so growth can be lower.
More like this
- Home Equity Loan CalculatorPayment and equity you can borrow.
- Student Loan CalculatorPayoff time and interest for a set payment.
- VA Loan CalculatorMonthly payment with the VA funding fee worked in.
- Interest-Only Loan CalculatorPayment during the interest-only years, then after.
- FHA Loan CalculatorPayment with the upfront and yearly FHA mortgage insurance.
- Boat Loan CalculatorMonthly payment on a boat or watercraft loan.