Should You Borrow From Your 401(k) or 403(b)?
Your results
Monthly payment
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Most you can borrow (2026)
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Lost investment growth
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Interest paid to your account
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Pre-tax pay needed for each payment–
Account after 5 years, no loan–
Account after 5 years, with loan–
Compared with another loan
Other loan monthly payment–
Cost of the 401(k) loan, after tax–
Cost of the other loan (interest)–
Year-by-year loan and account balance
The loan balance you still owe, and your account with and without the loan, at the end of each year.
| Year | Loan balance | Account with loan | Account without loan | Difference |
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If you leave your job, many plans want the loan repaid quickly. Any amount you do not repay is treated as a withdrawal: it is taxed as income and, before age 59½, may also face a 10% additional tax.
Results are estimates for educational purposes and are not financial, tax or legal advice.
Work out the payment on a loan from your workplace retirement plan, the most you can borrow, and what it really costs once lost investment growth is counted. The free 401k calculator is free to use with no sign-up, and works on desktop and mobile.