3 Car Loans Early Payoff Scenarios

[Tech56]

Hello,

I could use some help with extra principal to payoff car loans. I have $1130 available in my budget to pay towards car loans. Can someone come up with a system that works best based on the loans in this workbook? This needs to consider the least amount of interest paid over the loans. Also as each loan is paid off there will be that payment amount to pay towards the others.

Thank you so very much in advance for your help.

 

[AlanSidman]

This is a simple business solution. Pay off the Highest interest Loan first with all the extra cash being applied to that loan. Next, pay off the higher of the two remaining loans with the full amount of the extra cash, then finally, pay off the last loan. In this manner, you are reducing the interest costs. You do not need excel to tell you this. It is a matter of sound financial decision making.

 

[Tech56]

Thank you but I was hoping to use Excel so I can make calculations for when the loans can be paid off.

 

[AlanSidman]

Look at the attached Sheet1

 

[Tech56]

Thank you Alan but I was able to adapt something similar with a bit more detail. See attached workbook. Perhaps someone else can benefit too.