Pulling from IRA vs Financing

Todd, I’ve had this scenario come up twice just recently and asking if we have a calculator that will address this. The client came to me assuming he should pay cash (since rates are “high” and in between jobs, didn’t think he could qualify) using his IRA. He planned on pulling the full purchase price of $435K out and paying the tax plus penalty for early withdrawal. I want to compare this option to financing 80% (putting 20% down from HYS) not only avoiding the tax but keeping the money invested and showing the potential future value/opportunity cost, he may miss out on by not keeping his money invested.