Home
Back
TSP Loan Payment Formula:
| From: | To: |
The TSP (Thrift Savings Plan) loan payment formula calculates the fixed monthly payment amount for a TSP loan. It uses the standard amortization formula to determine the periodic payment amount based on the loan amount, interest rate, and number of payment periods.
The calculator uses the TSP loan payment formula:
Where:
Explanation: This formula calculates the fixed payment amount that covers both principal and interest over the loan term, ensuring the loan is fully paid off by the end of the period.
Details: Accurate TSP loan payment calculation is crucial for budgeting and financial planning. It helps borrowers understand their repayment obligations and ensures they can comfortably meet their monthly payment requirements without financial strain.
Tips: Enter the total loan amount in dollars, the annual interest rate as a percentage, and the total number of payment periods. All values must be valid (loan > 0, rate > 0, periods ≥ 1).
Q1: What is the typical interest rate for TSP loans?
A: TSP loans typically use the G Fund interest rate, which is set monthly and represents government securities rates.
Q2: What are the maximum repayment terms for TSP loans?
A: General purpose loans have up to 5 years, while residential loans can have up to 15 years for repayment.
Q3: Are there any fees associated with TSP loans?
A: There is a $50 loan processing fee that is deducted from the loan proceeds.
Q4: Can I make additional payments on my TSP loan?
A: Yes, you can make additional payments at any time to pay off your loan faster.
Q5: What happens if I leave federal service with an outstanding TSP loan?
A: The outstanding balance becomes due immediately. If not repaid, it may be treated as a taxable distribution.