This calculator will help you:

• See what happens to your 401(k) when you borrow against it.
• Figure out how much you would owe each month to repay the loan

Yep, you can borrow from your 401(k) alright. But is it really a good option?

For folks our age, we generally don’t have a lot of money available in our 401 (k) to borrow. Especially since you are only allowed to borrow up to 50% of the vested amount. But, it’s definitely an option to be aware of, and understand, so you can make the best decision possible for your situation.

Pros:

• You can borrow up to 50% of your vested amount or $50,000, whichever is lower.
• If you repay on time, the loan is shielded from taxes and penalties.
• A typical rate is prime or prime plus one percentage point.
• You pay the loan and interest back to yourself.

Cons:

• Most plans require you to pay back the loan in five-years.
• If you leave your employer (even if it's not your choice to leave), most plans require you to repay the outstanding balance within 30 to 90 days.
• If you cannot repay, your loan is considered in default and the government treats the outstanding balance as a taxable withdrawal.
• Some plans can charge a one-time fee, maintenance fee, or a combination of these.

Use this calculator to see how taking out a loan on your 401(k) can affect your retirement.

What do I have now: Current 401(k) Balance Estimated Annual Rate of Return: 0% 0.25% 0.5% 0.75% 1% 1.25% 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3% 3.25% 3.5% 3.75% 4% 4.25% 4.5% 4.75% 5% 5.25% 5.5% 5.75% 6% 6.25% 6.5% 6.75% 7% 7.25% 7.5% 7.75% 8% 9% 10% 11% 12% 13% 14% 15% Monthly Contributions What Kind of Loan am I Considering: Loan Amount Interest Rate for Loan 2% 2.25% 2.5% 2.75% 3% 3.25% 3.5% 3.75% 4% 4.25% 4.5% 4.75% 5% 5.25% 5.5% 5.75% 6% 6.25% 6.5% 6.75% 7% 7.25% 7.5% 7.75% 8.0% 8.25% 8.5% 8.75% 9.0% 9.25% 9.5% 9.75% 10.0% Loan Period 6 months 1 yr. 2 yrs. 3 yrs. 4 yrs. 5 yrs. Paying the Loan Back: Loan payoff Regular Monthly Contributions in Addition to Loan Payback