Hi All
Got the basic loan amortization with extra repayment functionality sorted out, now trying to add some functionality. Want people to give me some ideas on how they would build this.
The driving question is
In what order do I pay extra on the loans out into order to pay all loans out earlier.
SO..
I have a spreadsheet with 3 loans on 3 different sheets.
I have some spare cash and want to make extra repayments.
I apply it to a loan. If a loan gets payed out, I then 'snowball' the payments into the remaining loans.
How to do this???
I was thinking a messy IF statement in the extra repayment column of each loan that
checks if the principle remaining is above zero (ie not payed out), and if so, then checks to see if its next in order to be payed out.
If it is then it applies the extra repayment amount.
If not then just use 0 as the extra payment amount.
Excel goes off and makes the extra repayments. I record the results, then repeat for a different order (3,2,1).
Still a bit laborious - something that goes through the different orders, and returns the best one would be awesome.
Any other ideas on how to provide this functionality. Scenarios might be an option but I have not used this tool before.
A nagging thought is that in the real world some loans start earlier than others, so cant just put all loans side by side.
A way around this would be to find a common date in all 3 loans then manually move rows down until the same date is on the same row for all loans.
Cheers
Sam
PS
Not trying to consolidate the loans. Plenty of those calculators out there.
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