401(k) Loan Calculator
Find how much you can borrow from your 401(k), what you will repay each pay period and how much the loan may cost your retirement.
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About the 401(k) Loan Calculator
Many employer plans let you borrow from your 401(k). Federal rules cap the loan at the lesser of $50,000 or 50% of your vested balance, and most loans must be repaid within five years through payroll deductions. The interest you pay goes back into your own account, but you lose investment growth while the money is out. This calculator shows the payment and the true cost.
How to use it
- Enter your vested balance and the amount you want to borrow.
- Enter the plan's loan interest rate, repayment term and the return you would have earned.
- Press Calculate 401(k) loan to see the maximum loan, payment and opportunity cost.
401(k) loan rules
- Maximum: lesser of $50,000 or 50% of the vested balance.
- Repayment: generally within 5 years, longer for a home purchase.
- Interest is usually prime plus 1% to 2% and is paid to your own account.
- Not every plan offers loans. Check with your plan administrator.
Risks to weigh
Loan repayments are made with after-tax money and the earnings are taxed again at withdrawal. If you leave your job, many plans require repayment by your tax filing deadline or the balance is treated as a taxable distribution, with a 10% penalty if you are under 59½.
Frequently asked questions
How much can I borrow from my 401(k)?
The lesser of $50,000 or 50% of your vested balance. If 50% is below $10,000, some plans allow up to $10,000.
Is a 401(k) loan taxable?
No, if you repay it on schedule. If you default or leave your job and cannot repay, the balance can become taxable income plus a 10% early withdrawal penalty.
Is a 401(k) loan a good idea?
It can be cheaper than other borrowing, but it reduces your retirement growth and carries job-change risk. Compare it with other loans first.
How long do I have to repay a 401(k) loan?
Generally five years, with longer terms for buying a primary residence.
Do I pay interest to the bank?
No. The interest goes back into your own 401(k) account.
Last reviewed: November 2026. Estimates only, not financial, tax or legal advice.