Financial Resource Center

Money Management

Should I Pay Off Debt or Save?

by Laura Varela / August 19th, 2021


 

Money management always involves choices; some easier to make than others. This calculator will help you decide whether it's better to pay off credit now or increase your savings.

Remember that by using a low cost lender—like a credit union—whenever you borrow will help you save on credit, too. You can also improve your personal balance sheet by taking advantage of our high-yield savings accounts.

Should I pay off debt or save?
 Amount available each month
for saving or debt payment		 $
 Amount I owe
and want to pay off		 $
 Annual interest rate I pay on debt (%)
EXAMPLE: 15.99;
 Annual yield I earn on savings (%)
EXAMPLE: 1.29;
 Combined federal & state tax rate (%)
EXAMPLE: 21.49;
 Interest I'd save in one year by paying off debt:
Assumes monthly compounding
Assumes interest calculation before payment application		 $
 Yield I'd earn in one year on savings after taxes:
Assumes monthly compounding		 $

 

 

Provision of this calculator is not an offer of credit and in no way guarantees that credit will be granted. This calculator is solely for informational purposes and provides reasonably accurate estimates. The calculations are not intended to be relied upon as actual loan computations.

 

 

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