need help calculating multiple loans

[chr_fotiadis]

Here's my problem: I have a situation of 3 loans (different amounts, different rate og interest) and a fixed amount of money, which I can distribute to the 3 loans with any way I want. I want to calculate the best payment combination for the 3 loans in order to have the mininum total rate. Can you please tell me what functions to use?

Thanks in advance...

 

[chr_fotiadis]

Anyone?No-one has any idea?

 

[Qubit]

can we have a bit more information? amounts of money, what you've tried so far, etc.

 

[Oaktree]

Perhaps it's oversimplifying it to say that you'd pay down the loans with the highest interest rates first?

e.g. suppose you have three loans:

(1) $40,000 at 10%
(2) $60,000 at 8%
(3) $50,000 at 6%

Also suppose you have $50,000 you can use to pay down the debt.

You'd want to pay off 100% of loan (1) and $10,000 from loan (2).

Or, are there other complicating factors such as fees for falling below certain balances or similar?

 

[chr_fotiadis]

I solved this kind of a problem with 2 loans...so I started to put as payment for the 1st loan 5% of the total amount of money (for the paydown), the other 95% for the 2nd and I've calculated the total interest. Then I shifted into 10%-90%, 15%-85%...95%-5%. With this I found the best suitable analogy for the payments of 1st and 2nd loan (the minimum interest). But now with 3 loans it's a little more complicated to calculate the total interest, because I have to write down the combination of those 3, meaning (5%-5%-90%, 10%-5%-85%...5%-10%-90% etc).