401(k) Loan Calculator
Borrowing from your 401(k) is cheap and doesn't hit your credit — but it pauses the growth of that money. This calculator shows the payment and what the loan really costs.
How to use this calculator
- Enter loan amount.
- Enter interest rate (often prime + 1%).
- Enter loan term (years).
- Your results appear instantly below and update as you change the numbers.
How this calculator works
A 401(k) loan lets you borrow up to $50,000 or half your vested balance (whichever is less), usually repayable over 5 years through payroll deductions. The calculator amortizes the loan: your monthly payment is fixed, part pays interest and part repays principal, just like a car loan. One key difference: the interest you pay goes back into your own account — so the true cost is the investment growth the borrowed money misses out on while it is out of the market.
Frequently asked questions
How much can I borrow from my 401(k)?
The lesser of $50,000 or 50% of your vested balance, minus any outstanding 401(k) loan balance from the past 12 months. Home purchase loans can sometimes be repaid over a longer term.
What happens if I leave my job with a 401(k) loan?
Most plans require repayment of the full balance within about 60–90 days of leaving. If you can't repay, the outstanding amount becomes taxable income and, if you are under 59½, may be hit with the 10% early withdrawal penalty.
Is the interest on a 401(k) loan deductible?
No — and it's taxed twice in a sense: you repay the loan with after-tax dollars, then pay tax again when you withdraw that money in retirement. The real cost of a 401(k) loan is the lost market growth, not the interest itself.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.