401(k) Loan Interest Rate Calculator
Estimate your payments and interest when borrowing from your retirement account
Loan Summary
About 401(k) Loans
When you borrow from your 401(k), you’re essentially borrowing from yourself. The interest you pay goes back into your retirement account.
Most 401(k) plans limit loans to 50% of your vested account balance or $50,000, whichever is less.
Typically, 401(k) loans must be repaid within 5 years, with payments made at least quarterly. If you leave your job, the loan may become due immediately.
Remember that while your loan is outstanding, that money isn’t growing in your retirement account, which could impact your long-term savings.
Table of Contents
💡 What is a 401(k) Loan?
A 401(k) is a retirement savings account in the United States. Sometimes, your employer lets you borrow money from your 401(k). This is called a 401(k) loan.
It’s not like a normal loan from a bank. Here are the basics:
- You borrow from your own savings.
- You must pay the money back within a few years.
- You pay interest, but it goes back into your own account.
- If you leave your job or can’t repay, it might be treated as taxable income.
Even though you’re “paying yourself back,” it’s still a loan. That means you need to know:
- How much will my monthly payment be?
- How much interest will I pay?
- How much will I pay back in total?
That’s exactly what our 401(k) Loan Calculator helps with.
🛠 How the 401(k) Loan Interest Rate Calculator
The 401(k) Loan Interest Calculator is super easy to use. Just enter 3 things:
- Loan Amount – How much money you want to borrow.
(Example: $10,000) - Interest Rate (annual) – The rate you’ll pay each year.
(Example: 5%) - Loan Term (years) – How long you’ll take to pay it back.
(Example: 3 or 5 years)
Click “Calculate” and the tool gives you:
- 📅 Your monthly payment
- 💵 Your total interest
- 💰 Your total repayment amount
No need to use a pen, calculator, or spreadsheet. It’s instant and simple.
Try it here 👉 https://calculatoronline.work
🔍 Why This Calculator Is Important
Even though 401(k) loans don’t affect your credit score, they can hurt your future savings if not handled right.
This calculator gives you a clear picture so you can avoid surprises. Here’s how it helps:
✅ Budget Planning
You’ll know how much you’ll pay every month. That helps you plan your money better.
✅ Understand the Cost of Borrowing
Even if you’re paying yourself back, interest still adds up. This tool shows you exactly how much.
✅ Compare Options
You can compare a 401(k) loan with other loans (like personal loans or credit cards). Sometimes a different option is cheaper in the long run.
📈 Example Calculation (Super Simple)
Let’s say you want to borrow $10,000 from your 401(k).
- Interest Rate: 5%
- Loan Term: 5 years
Here’s what the calculator might show:
- Monthly Payment: $188.71
- Total Interest: $1,322.74
- Total Repayment: $11,322.74
So even though you borrowed $10,000, you’ll be paying back over $11,000 over 5 years. That’s why knowing the full cost is so important!
🔐 Is It Safe to Borrow from Your 401(k)?
Here are the pros and cons of 401(k) loans:
👍 Pros:
- You don’t need a good credit score.
- You’re borrowing from yourself.
- Interest goes back to your own account.
👎 Cons:
- You may lose out on investment growth.
- If you lose your job, you might owe the money fast.
- If you don’t repay, the IRS may count it as income, and you pay tax + penalty.
That’s why you need to calculate everything before borrowing. And that’s where our tool comes in handy!
📌 Know Before You Borrow
A 401(k) loan might feel like a quick fix, but it’s still a financial decision. If you don’t check the numbers first, you could end up losing more than you gain.
Use our 401(k) Loan Interest Rate Calculator to:
- Check your monthly payments
- See the total loan cost
- Make better money decisions
Try it today, only at 👉 https://calculatoronline.work