401(K) LOAN VS WITHDRAWAL CALCULATOR · RUNS IN YOUR BROWSER · NOTHING UPLOADED

Need cash: what does a 401(k) loan, a withdrawal or an outside loan really cost?

Type the cash you need and your account details. The tool prices each route in the same unit, what you hold less at your horizon, counting tax, penalty, lost growth and the interest, and shows what happens to the loan if you leave your job.

Arithmetic on assumptions you type. Not tax, legal or financial advice. The example figures are placeholders, not a recommendation; check your plan's rules and current tax law.

1. The cash you need and the account

2. If you take a 401(k) loan

3. If you withdraw instead, or borrow outside

Questions people ask

Is a 401(k) loan really "paying interest to yourself"?

Partly. The interest goes back into your own account, but you repay with after-tax money into a pre-tax account, and while the borrowed amount is out of the market it earns nothing. The tool prices both effects over the horizon you choose so you can compare with the alternatives.

What happens to a 401(k) loan if I leave my job?

Many plans make the unpaid balance due. If you do not repay or roll it over by the tax filing deadline for that year, the balance is treated as a distribution: income tax, and a 10% penalty if you are under 59½. The tool shows that figure for the month you type.

How much can I borrow from my 401(k)?

Generally the greater of $10,000 or 50% of the vested balance, capped at $50,000, and only if your plan offers loans. Your plan can set a lower limit or fees. The tool warns when your loan is above the usual limit.

Why does a withdrawal cost so much more?

You pay income tax and usually a 10% penalty up front, so you must take out more than you need, and all of that money stops growing for good. The tool grosses the withdrawal up to net the cash you asked for and compounds the loss to your horizon.

When does an outside loan win?

When the interest rate is low and your investments are expected to grow quickly, because the loan leaves the account untouched. The growth table shows how the ranking changes between 2% and 10% yearly growth.

Is this financial or tax advice?

No. It is arithmetic on figures you type. Plan rules, tax rates and penalty exceptions vary, and hardship rules differ from the plain early withdrawal modelled here. Confirm with your plan administrator and a qualified professional before borrowing or withdrawing.

Not decided

Whether you qualify for a hardship distribution or a penalty exception, your plan's loan rules and fees, state tax detail, what you would invest in, and whether you should borrow at all. Hardship and emergency distributions have their own rules that this plain-withdrawal model does not capture.

Related tools: the retirement withdrawal sequencer and the HELOC vs cash-out refinance calculator.