Financial Education

Should I Pay Off Debt or Save

January 11th, 2016

What to do with money always involves choices, some easier to make than others. The trade-off between paying off credit and adding to savings is easier to see when you use this calculator.

Remember to save on credit, too, by using the low cost lenderyour credit unionwhenever you borrow. And you win on the other side of your personal balance sheet by adding to savings at the credit unionyour source for high yields.

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. Its use 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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