Loan Calculator

Will Borrowing Crack Your Nest Egg?

Many retirement plans allow you to borrow from your account balance, letting you repay the loan through automatic, after-tax payroll deductions. Borrowing from your retirement plan has certain advantages, but it also poses drawbacks--loan balances must be paid off in five years and if you leave your job, you may be required to pay back the full balance within a short-time frame or pay penalties and taxes. Most important, borrowing from your retirement plan can significantly reduce your retirement savings nest egg.

To find out how much borrowing might cost you if you reduce your contributions and settle for potentially lower returns, answer the following questions and then select Submit.

What is your current age?

  1. 14
  2. 35
  3. 56
  4. 78
  5. 99


At what age do you plan to retire?

  1. 55
  2. 60
  3. 65
  4. 70
  5. 75


What is the current vested balance in your retirement savings plan?


How much is contributed to your retirement savings plan (including your employer’s match) each pay period?


What is the frequency of this contribution?

How much do you and your employer plan to contribute per pay period while repaying the loan? Note that the maximum employee contribution for 2023 is $22,500, or $30,000 if you are over age 50. Enter "0" if you do not plan to contribute while the loan is outstanding.


Which annual rate of return do you expect to earn on the investments in your plan?

How many years do you expect to need to pay off the loan? (You generally have up to five years)

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5


How much are you planning to borrow?


What is the interest rate on the loan?

  1. 0
  2. 5
  3. 10
  4. 15
  5. 20

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