Interactive Estimator

    Retirement Down Payment Calculator (IRA & 401(k))

    See how an IRA withdrawal or a 401(k) loan could change your cash to close and your estimated monthly payment on a home in the Philadelphia suburbs. Every result is an educational estimate — verify with a CPA, your retirement-plan administrator, and a licensed lender before making any decision.

    Retirement + First-Home Estimator

    Educational estimate only. Every result depends on assumptions you control below and on rules that change. Verify with a CPA, your retirement-plan administrator, and a licensed lender before any decision. This tool is not tax, legal, investment, or lending advice.

    Home & mortgage
    $
    $

    Savings, gift funds, employer assistance — anything besides retirement funds.

    %
    years
    %

    Varies by township and school district in the Philadelphia suburbs — verify by address.

    $
    IRA withdrawal
    $
    %

    A CPA can identify your exact rate. State income tax is not modeled here.

    Under current law, only qualified first-time buyers get the $10,000 penalty exception. Your CPA confirms whether you qualify.

    Estimated results

    IRA withdrawal impact

    Gross withdrawal

    $10,000

    Estimated income tax

    $2,200

    At your 22% marginal rate on Traditional IRA dollars.

    Estimated 10% penalty

    $0

    Applies to amounts over the $10,000 first-time-homebuyer exception, if under 59½.

    Net cash to down payment

    $7,800

    Home purchase impact

    Total down payment

    $22,800

    4.6% of price

    Loan amount

    $477,200

    Monthly P&I

    $3,016.23

    6.5% for 30 yrs

    Est. monthly PITI

    $3,999.56

    Principal, interest, property tax, insurance. Excludes PMI, HOA, utilities.

    Important limits of this tool

    • Tax and penalty math is a simplified illustration. Actual tax impact depends on your full return, filing status, state taxes, phaseouts, and other income — a CPA must run your specific numbers.
    • The $10,000 IRA first-time-homebuyer exception is a penalty exception under current law, not a tax exemption. Traditional IRA dollars may still owe ordinary income tax. Roth IRA rules differ and are not modeled separately here.
    • A proposed bill (the Uplifting First-Time Homebuyers Act) would raise the limit to $50,000. It is not current law and is not reflected in these results.
    • 401(k) loan availability, interest rate, term, and what happens on separation of employment are set by your plan document — ask your plan administrator in writing before you rely on any figure.
    • PITI excludes private mortgage insurance, HOA fees, utilities, and reserves. Property tax rate varies by township and school district; verify by address for any home you are seriously considering.

    How to use it

    1. Enter a realistic target home price for the town you are shopping in. Property tax rates vary noticeably by township and school district — check any specific home with your lender.
    2. Add cash you already have set aside for a down payment separately from any retirement funds.
    3. Pick the tab that matches what you are considering: a traditional IRA withdrawal, a 401(k) loan, or a combination of both.
    4. Compare the estimated monthly PITI to your comfortable housing budget. If you are also modeling a 401(k) loan, add that repayment on top when checking cash flow.

    Read the full guide

    For the full context on the $10,000 IRA first-time-homebuyer penalty exception, the proposed $50,000 bill (not current law), and the tradeoffs, see the cornerstone guide: Can You Use Retirement Savings to Buy Your First Home?

    Continue the First-Home + Retirement Series

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