401 Loan Calculator

A 401(k) loan can be a quick way to access cash for emergencies, large purchases, or debt consolidation without traditional bank loans. But before borrowing from your retirement savings, it’s essential to understand exactly how much you’ll be paying back, the interest involved, and the total impact on your finances.

Our 401(k) Loan Calculator is designed to make these calculations simple, fast, and accurate. By entering just a few details about your loan, you can get an instant breakdown of your repayment plan, total interest, and total cost, helping you make a well-informed decision.

Why Use a 401(k) Loan Calculator?

Taking out a 401(k) loan isn’t like borrowing from a bank. While you technically repay the loan to your own retirement account, there are still important factors to consider:

• Impact on retirement growth – Money taken out of your 401(k) is not invested while it’s borrowed, potentially affecting future returns.
• Repayment requirements – Loans typically must be repaid on time to avoid penalties.
• Possible job change consequences – If you leave your employer, repayment may be required sooner.

This calculator helps you see the full financial picture—including how much each payment will be, the total interest you’ll pay, and the combined cost of loan, interest, and any fees.

How to Use the 401(k) Loan Calculator – Step-by-Step

Follow these steps to get your results in seconds:

1. Enter the Loan Amount –
   Input how much you plan to borrow from your 401(k) account.
2. Provide the Interest Rate (APR) –
   This is the percentage rate charged annually. Your plan provider can give you the exact rate.
3. Choose the Loan Term (Years) –
   Enter how long you will take to repay the loan.
4. Select Repayment Frequency –
   Choose between:
   • Monthly (12 payments/year)
   • Bi-Weekly (26 payments/year)
   • Weekly (52 payments/year)
5. Enter Origination Fee (Optional) –
   If your plan charges a setup fee, enter it here.
6. Click “Calculate” –
   A progress bar will display for a few seconds before showing your results.
7. View Detailed Results –
   See:
   • Payment per period
   • Total interest paid
   • Number of payments
   • Total cost (loan + interest + fees)
8. Copy or Share Results –
   Use the built-in buttons to copy results to your clipboard or share them directly.

Example Calculation

Let’s say you borrow:

• Loan Amount: $10,000
• Interest Rate: 5%
• Term: 5 years
• Repayment Frequency: Monthly (12 payments/year)
• Origination Fee: $100

After clicking Calculate, you might see results like:

• Payment per Period: $188.71
• Total Payments: $11,322.60
• Number of Payments: 60
• Total Interest Paid: $1,322.60
• Origination Fee: $100
• Total Cost: $11,422.60

This shows that while you’re borrowing $10,000, you’ll ultimately pay back over $11,400 when factoring in interest and fees.

Features & Benefits of the 401(k) Loan Calculator

• Quick and Easy to Use – Results appear in just seconds.
• Customizable Inputs – Adjust loan amount, interest, term, frequency, and fees.
• Clear Breakdown – See exactly how much you’ll pay in interest, principal, and fees.
• Real-Time Calculations – Helps you instantly compare different loan scenarios.
• Shareable Results – Copy or share your results with a financial advisor or partner.

Tips for Using the Calculator Effectively

• Always double-check your plan’s interest rate before calculating.
• Experiment with different repayment frequencies to see how it affects total interest.
• Include origination fees if applicable for a more accurate total cost.
• Consider how withdrawing from your 401(k) might impact long-term retirement savings.
• Use the results to decide if a 401(k) loan is better than other financing options.

Common Use Cases

• Debt Consolidation – Comparing loan terms to see if a 401(k) loan will reduce monthly payments.
• Home Renovations – Estimating how much the project will cost with repayment included.
• Emergency Expenses – Quickly checking affordability of urgent funding.
• Large Purchases – Planning repayment for items like vehicles or medical procedures.

FAQs – 401(k) Loan Calculator

1. What is a 401(k) loan?
A 401(k) loan lets you borrow money from your retirement savings and repay it with interest to your own account.

2. How accurate is this calculator?
It provides accurate estimates based on your inputs, but actual costs may vary depending on your plan’s terms.

3. Do I have to pay taxes on a 401(k) loan?
No, loans aren’t taxed if repaid on time. However, missed repayments may be treated as withdrawals and taxed accordingly.

4. What is the typical interest rate for a 401(k) loan?
Rates often range from 4% to 7%, depending on your plan.

5. Can I repay a 401(k) loan early?
Yes, most plans allow early repayment without penalties, potentially saving you interest.

6. What happens if I leave my job with a 401(k) loan?
You may have to repay the loan in full within a short period, usually 60–90 days.

7. Is there a maximum amount I can borrow?
Yes, typically up to 50% of your vested account balance or $50,000, whichever is less.

8. Does the calculator work for partial repayments?
It assumes fixed, regular payments, so partial lump-sum payments aren’t factored in.

9. Can I use this calculator for other loans?
Yes, it can estimate payments for other fixed-rate loans with similar terms.

10. Are origination fees common for 401(k) loans?
Some plans charge them, but many do not. Always check your plan’s rules.

11. Will borrowing from my 401(k) affect my credit score?
No, 401(k) loans aren’t reported to credit bureaus.

12. Can I have more than one 401(k) loan at a time?
Some plans allow multiple loans, but rules vary.

13. Does interest I pay go back to me?
Yes, interest is paid back into your 401(k) account.

14. What’s the repayment frequency I should choose?
More frequent payments (e.g., bi-weekly) can reduce total interest paid.

15. How long does it take to get a 401(k) loan?
Processing usually takes a few days to a week, depending on your plan.

16. Can I use a 401(k) loan for any purpose?
Generally yes, but some plans have restrictions.

17. Is a 401(k) loan better than a personal loan?
It depends on interest rates, repayment terms, and potential impact on retirement growth.

18. Will this calculator factor in missed payments?
No, it assumes all payments are made on time.

19. Can this calculator help me compare scenarios?
Yes, you can run multiple calculations with different inputs to compare outcomes.

20. Should I consult a financial advisor before taking a 401(k) loan?
Yes, to ensure you understand the long-term implications for your retirement savings.

By using this 401(k) Loan Calculator, you can clearly see the total cost of borrowing from your retirement account and make a smarter financial choice. It’s a quick, easy, and essential step before committing to any 401(k) loan.