TSP Loan Impact Calculator

Discover the shocking true cost of borrowing from your future self. See how a TSP loan will impact your retirement savings.

How to Use This Calculator

  • • Enter your current TSP balance and contribution amounts
  • • Your regular contributions and agency match continue during loan repayment
  • • Provide your age and planned retirement date
  • • Enter the loan amount and term (1-5 years)
  • • See the true cost: lost compound growth that can never be recovered

🔒 Your Privacy Protected: For your security, we do not store any of your financial information. All calculations are performed in your browser and cleared when you close it.

TSP Loan Impact Calculator

Thinking about a TSP loan? See the shocking true cost of borrowing from your future self.

Important Notes About This Calculator

  • For Educational Purposes: This calculator shows the opportunity cost of taking a TSP loan based on projected investment returns.
  • Key Assumption: Your contributions and agency match continue during loan repayment. The cost shown is purely the lost compound growth.
  • Not Financial Advice: Always consult with a financial professional before making loan decisions.
Your Current Situation

Remember: When you take a TSP loan, your regular contributions and agency match continue. The loan is repaid via biweekly payroll deductions. The true cost is the compound growth your borrowed money will miss out on forever.

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Loan Details
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Rate from month before loan request, fixed for loan term.

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Understanding TSP Loan Impact

  • Lost Compound Growth: The money you borrow stops earning investment returns immediately
  • Double Taxation on Traditional TSP: You repay with after-tax dollars, then pay taxes again at withdrawal
  • Opportunity Cost: Missing even a few good market years can cost tens or hundreds of thousands at retirement
  • Default Risk: If you leave federal service with an outstanding loan, it becomes a taxable distribution plus 10% penalty if under 59½
  • Consider alternatives like emergency funds, personal loans, or home equity lines before borrowing from your TSP