Free 401k loan calculator — calculate monthly payments and total interest
This free 401k loan calculator (also a 401k loan payment calculator) helps you figure out your monthly payment if you borrow from your 401k. 401k loans are often cheaper than personal loans because you're borrowing from yourself — the interest goes back into your own account.
Millions of Americans take out 401k loans every year to pay off debt, buy a home, or cover emergency expenses. Unlike a withdrawal, a 401k loan doesn't trigger the 10% early withdrawal penalty or income tax.
Most 401k plans allow you to borrow up to 50% of your vested balance, up to a maximum of $50,000. The typical repayment period is 5 years, but you can pay it back early without penalty.
Pros:
Cons:
You can borrow up to 50% of your vested 401k balance, with a maximum of $50,000. For example, if you have $100,000 vested, you can borrow up to $50,000. If you have $50,000 vested, you can borrow up to $25,000.
Most plans charge prime rate plus 1-2%. As of 2026, that's typically around 7-9%. The good news is the interest you pay goes back into your own 401k account, not to a bank.
You typically have 60 days to pay back the full loan balance. If you can't, the remaining balance is treated as a taxable distribution — you'll owe income tax plus the 10% early withdrawal penalty if you're under 59½.
Usually yes, if you're confident you'll keep your job. 401k loans have lower rates, no credit check, and interest goes back to you. But if there's a chance you might lose your job soon, a personal loan is safer.
Yes! There's no prepayment penalty. Paying it off early saves you interest and gets your money back into your retirement account faster.