401(k) Loan Paycheck Impact Calculator

Convert a 401(k) loan into the cash leaving each paycheck before you borrow. Supply the loan amount and term to see the per-paycheck deduction, total interest credited back to your retirement account, first-year cash needs, and the number of payroll pulls your employer will schedule.

Amount you plan to borrow from the 401(k) plan.
Length of the payroll amortization schedule.
Defaults to 6.0% if blank.
Defaults to 26 for biweekly payroll.

Check plan documents and HR for final repayment schedules and payroll timing.

Examples

  • $15,000 loan, 5-year term, 6% interest, 26 payrolls ⇒ Deduction per paycheck: $133.69 • Total paid back to the plan: $17,379.50 • Interest credited to your account: $2,379.50 • Cash required in year one: $3,475.90 • Payments scheduled: 130.00 installments
  • $8,500 loan, 3-year term, 5% interest, 24 payrolls ⇒ Deduction per paycheck: $127.25 • Total paid back to the plan: $9,162.27 • Interest credited to your account: $662.27 • Cash required in year one: $3,054.09 • Payments scheduled: 72.00 installments

FAQ

Can I model semi-monthly payroll?

Yes. Change the payroll periods per year to 24 so the calculator uses the correct deduction schedule.

What if the plan charges an origination fee?

Add the fee to your loan amount before running the numbers so the per-paycheck deduction covers the full disbursement and fee.

How do I reflect extra principal payments?

Because 401(k) loans are typically amortized evenly, rerun the calculator with a shorter term to approximate the effect of accelerating principal.

Additional Information

  • Many plans set loan rates at prime plus 1%—update the optional interest field to match your promissory note.
  • Loan repayments are made with after-tax dollars, and missed payroll deductions can trigger a deemed distribution.
  • Shorter terms reduce interest but increase the per-paycheck hit, so evaluate the tradeoff before finalizing the request.

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