(I thought this must be a duplicate but couldn't easily find an earlier similar one, so I venture to answer...)
There is no general answer to this question. The rule of thumb suggested by the creators of Scala is to start with immutable vals and structures and stick to them as long as it makes sense. You can almost always create a workable solution to your problem this way. But if not, of course be pragmatic and use mutability.
Once you have a solution, you can tweak it, test it, measure its performance etc. If you find that e.g. it is too slow or overly complex, identify the critical part of it, understand what makes it problematic and - if needed - reimplement it using mutable variables, ideally keeping it isolated from the rest of the program. Note though that in many cases, a better solution can be found from within the immutable realm as well, so try looking there first. Especially for a beginner like myself, it still happens regularly that the best solution I could come up with looked contorted and complex with no apparent way to improve it - until seeing a simple and elegant solution to the same problem in a few lines of code, created by an experienced Scala developer who controls more of the power of the language and its libraries.