Amortization Schedule
An amortization schedule details the breakdown of each loan payment into interest and principal over the loan term. This schedule helps borrowers understand how their debt decreases with each payment and provides clarity on interest costs. Amortization schedules are used in various types of loans, including mortgages and equipment financing, to forecast future liabilities and manage debt repayment efficiently.
Key Takeaways
- Details loan payment breakdown into interest and principal.
- Helps borrowers track debt reduction.
- Commonly used in mortgages and business loans.
- Essential for debt management and forecasting.
