- Amortization Schedule
- A complete schedule of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term. Early in the schedule, the majority of each periodic payment is interest. Later in the schedule, the majority of each periodic payment is put toward the principal.
If you know the term of a loan and the total periodic payment, an easy way to calculate an amortization schedule is to do the following: Starting in month one, multiply the loan balance by the periodic interest rate. This will be the interest amount of the first month's payment. Subtract that amount from the total payment, which will give you the principal amount.

To calculate the next months' interest and principal payments, subtract the principal payment made in month one from the loan balance, and then repeat the steps from above.

*Investment dictionary.
Academic.
2012.*

### Look at other dictionaries:

**Amortization schedule**— An amortization schedule is a table detailing each periodic payment on a amortizing loan (typically a mortgage), as generated by an amortization calculator. While a portion of every payment is applied towards both the interest and the principal… … Wikipedia**amortization schedule**— schedule detailing rate of repayment of a loan … English contemporary dictionary**amortization schedule**— A schedule that summarizes the dates on which specified amounts must be paid in the repayment of a loan … Accounting dictionary**amortization schedule**— A schedule that summarizes the dates on which specified amounts must be paid in the repayment of a loan … Big dictionary of business and management**Loan amortization schedule**— The schedule for repaying the interest and principal on a loan. The New York Times Financial Glossary … Financial and business terms**loan amortization schedule**— The timetable for repaying the interest and principal on a loan. Bloomberg Financial Dictionary … Financial and business terms**Amortization**— or amortisation is the process of decreasing, or accounting for, an amount over a period of time. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo French amorteser , alteration of amortir , from Vulgar Latin… … Wikipedia**Amortization calculator**— An amortization calculator is used to determine the periodic payment amount due on a loan (typically a mortgage), based on the amortization process. The amortization repayment model factors varying amounts of both interest and principal into… … Wikipedia**Amortization (business)**— For other uses of Amortization, see the Amortization disambiguation page. Amortization is the distribution of a single lump sum cash flow into many smaller cash flow installments, as determined by an amortization schedule. Unlike other repayment… … Wikipedia**amortization**— / amortazeyshsn/ In accounting, the allocation (and charge to expense) of the cost or other basis of an intangible asset over its estimated useful life. Intangible assets which have an indefinite life (e.g., goodwill) are not amortizable.… … Black's law dictionary