3 views Debt Information Amount owed? $ Interest rate on debt? % Debt payoff term? Savings Information Monthly savings? $ Interest rate on savings? % Federal & state tax rate? % Printer-friendly version Debt Payoff vs Savings Summary Interest Savings on Debt Interest Earned on Savings Chart Table Interest Saved vs Interest Earned Over Payoff Term Amount Interest Savings on Debt Interest Earned on Savings Email Results First Name Last Name Email Address Phone Number Submit Having savings is important, especially when the savings are part of an emergency fund or a hedge against a loss of income. However, when you also have debt, in the form of an outstanding credit card balance or loan, you might want to consider whether you are better off using the money you have in savings to pay down debt. Whether it makes sense or not is determined by the interest rate you are earning on your savings versus the interest rate you are being charged on your outstanding loan balance. The difference between earning interest and paying it should give you a good indication of where you can get the best return.