All articles in this category pertain to amortization schedules. An amortization schedule is a table presenting the decrease of a loan over the contracted term due to the contracted payments. The payments are allocated between reductions of principal and interest expense calculated from the contracted discount rate. It is helpful in understanding how borrowing works. When paying a loan, the amortization schedule shows how payments are applied and what the loan balance is or will be at a specific period of time.
Learn more about amortization schedules below.