The Cost of Borrowing from Your Retirement

Use this calculator to estimate the impact of taking a loan 
from your 403(b) or 457 savings plan.

Your plan may allow you to take a loan, but it's rarely a good idea to tap into your retirement savings. Withdrawals and the costs associated with taking a loan can dampen the positive effect that compound interest can have on your account balance.

 

The Cost of Borrowing from Your Retirement
$
$
You cannot take more than 50% of your balance, or $50,000, whichever is less.
$
Month
$
years
$0
Amount borrowed today
$92,700
The amount you could lose in compounding if you take a loan
$493,182
If you borrow
$585,882
If you don’t borrow
Impact of your loan on your savings at retirement

In 29 years:

If you don't borrow, you could save $585,882 by the time you retire.

If you borrow $10,000, you could save $493,182 by the time you retire.

A loss of $92,700.

* If you know your rate of return, select that number. If not, you can estimate your return or contact your provider to obtain your current rate. To estimate returns: conservative investors/fixed annuity investors should estimate 2%-3%, moderate investors 4% and aggressive investors 6%. This is based on long-term results net of fees (choose the lower number within your category if you are within 5 years of retirement). Past performance is not a guarantee of future results, and your return is not guaranteed. This calculator does not take into account any additional costs or fees associated with taking a loan.

This calculator is designed to estimate the impact of a plan loan on your future 403(b) or 457 plan account balance. Calculations are based on the assumptions provided and are not guaranteed. Please note the calculator assumes a constant return pattern. Actual results are likely to vary due to return volatility.