⚖️ Calculator

Loan vs. Withdrawal

Need money from your 401(k)? A loan and a withdrawal are very different beasts. This calculator shows the true cost of each option so you can make the right call.

Your Situation

Amount You Need

Current 401(k) Balance

IRS max loan = 50% of balance, up to $50,000

Your Age

Federal Tax Bracket

Loan Repayment Term

Loan Interest Rate (Prime + 1% typical)

Interest is paid back to yourself, not a bank.

Expected Annual Market Return

Side-by-Side Comparison

🏦 Take a Loan

Monthly payment

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Total repaid

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Interest paid (to yourself)

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Opportunity cost (lost growth)

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True cost of loan

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💸 Cash Out

Penalty (if under 59½)

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Federal tax

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You receive

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Lost future growth

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True cost of withdrawal

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Estimates only. Assumes loan is repaid on schedule. Missing loan payments can trigger a deemed distribution with full tax and penalty. Opportunity cost uses compound growth on the borrowed principal.